[SatNews] The acquisition of T-Mobile by AT&T takes care of one problem, but leaves many more questions to be answered...

Deutsche Telekom's management has had two widely-reported headaches over the past two to three years: the T-Mobile businesses in the U.S. and UK. The UK dilemma was resolved about 18 months ago by a merger with Orange, and now the group seems finally have found a dance partner for T-Mobile USA, as well. The fact that it's AT&T and not Sprint makes a lot of sense. Nonetheless, the move will create a nationwide carrier that will be much more powerful (by nearly one-third, in terms of subscriber market shares) than its closest challenger, Verizon. “There's no doubt that this will cause a major regulatory hiccup, and the new ‘T-AT’ will have to shed spectrum and other assets in many areas where it operates,” comments ABI Research industry analyst Aapo Markkannen. “But at the end of the day, ABI Research’s take is that the deal will go through in one form or another.”

Will this development be good for consumers? According to senior analyst Mark Beccue, the answer is “yes and no.” “It is most likely a good thing for current AT&T mobile customers,” he says, “as network coverage and quality should improve with the addition of T-Mobile’s cell sites.” On the other hand, T-Mobile has gained a reputation in the U.S. as the value segment leader, something AT&T is decidedly not. “A large proportion of T-Mobile’s customers will most likely be faced with a price hike should the deal go through,” Beccue adds. “I don’t think AT&T is going to try too hard to keep most of these ‘value’ segment customers, as they do not view them as profitable.”

Where, then, will those customers go? What are the four reasons why regulatory approval is very likely for this deal? What will the move mean to Deutsche Telekom's operations elsewhere? To discuss this breaking story with ABI Research’s Aapo Markannen or Mark Beccue, please call Christine Gallen at +1-516-624-2542, or email [email protected].​