Greg's bite: AT&T gobbles up T-Mobile
TweetFollow Us on Twitter

Greg's bite: AT&T gobbles up T-Mobile

By Greg Mills

The only constant in the cell phone market is that amazing changes come quickly. Remember that cute dark headed girl in the red and white striped dress (Carly Foulkes) that lampoons AT&T in T-Mobile commercials? I guess she really got to them, so AT&T spent US$39 billion in cash and AT&T stock to buy out T-Mobile and get her off the air. 

The move makes sense, as T-Mobile and AT&T use the same GSM format and that makes their cell towers and backbone compatible with little effort.

T-Mobile, the fourth in size in the USA if merged into AT&T, makes AT&T larger than Verizon, formerly the largest cell phone company in the US. Sprint remains a distant #3. Soon former T-Mobile customers can buy and use iPhones with their existing T-Mobile accounts. This is assuming AT&T can get the government to allow the merger. Some experts think AT&T may be quite disappointed as network monopoly issues will certainly make merger approval difficult to obtain. 

The move is good if you have been experiencing a lot of dropped calls on AT&T as the additional bandwidth and frequencies owned by T-Mobile will soon support AT&T phones. I never did get paid by the advertising arm of AT&T for my original slogan, "AT&T, no bars in more places." Now perhaps in outlying areas where AT&T was weak, the additional infrastructure that was T-Mobile will help them serve existing customers with better service and capture a lot of the business T-Mobile had built. One always can hope for fewer dropped calls.  

What is really behind the merger is likely the expensive move to 4G technology that will become the big thing this year and next year. Speed and bandwidth are both the promise and the challenge all the cell companies are facing. The unannounced Apple iPhone 5 will certainly have 4G radios in it.  

T-Mobile was advertising sort of a poor man's 4G by using 3G technology to ramp up speeds to near 4G standards.  T&T is also working on speeding up both the existing AT&T 3G and newer 4G networks. Improvements to existing infrastructure are cheaper than buying and installing all new towers and transmitters. If you can double the speed of your bandwidth, you can double the traffic you have on your system without adding towers and a lot of new equipment. To some extent, the software speed ramps are maxed out but incremental improvements are still being made in 3G technology. 

The downside, other than putting a very cute young woman out of work, is the reduction in competition. AT&T really needed to get kicked in the shins for slow speeds and poor service.  Reducing the number of players in the cell phone industry to three won't help keep your cell phone bills down.   

Sprint (one third the size of AT&T) has been working through its nearly bankrupt subsidiary, Clear, to offer 4G technology. I tested a Clear hot spot device and found that the network was very limited and not worth the cost of subscribing as it also required a Sprint account to fill in with 3G when 4G wasn't available. The cost of building out a new 4G network is very high and that has Clear desperate for capital. You can't sell a lame 4G network, and you can't build one without enough customers and the cash flow they bring to the table.

However, as I mentioned in a prior article, the prospect of reselling unused bandwidth of all the carriers by the likes of Apple could allow new players in the cell phone business. New players who have never built the first tower. All the cell phone companies have wasted capacity that they would like to sell.

Perhaps Apple comes along and agrees to buy a considerable amount of excess capacity for a low bulk price and then resells service to the iPhone faithful, at a profit. With universal iPhones that will run on any cell phone system, all this begins to gel technically. Ironically, the prospect of companies like Apple getting into reselling cell service might mitigate regulatory concerns about the AT&T merger with T-Mobile.

On another note, there is an article floating around the net telling people to get a W-iFi only iPad 2 as with tethering with an iPhone you can get GPS mapping. While this is true, tethering costs $20 a month in addition to normal iPhone plans and will likely also cost something for bandwidth down the line.  

The reality is that juggling an iPhone and iPad at the same time to save a few buck at the time you buy iPad makes no sense to me at all.  I would rather pay $30 a month for iPad cell network service and have a stand-alone device. The iPad rocks, so why hobble it with a lame tethering situation for $10 a month?

That's Greg's Bite for today.

(Greg Mills is currently a graphic and Faux Wall Artist in Kansas City. Formerly a new product R&D man for the paint sundry market, he holds 11 US patents. Greg is an Extra Class Ham Radio Operator, AB6SF, iOS developer and web site designer. He's also working on a solar energy startup using a patent pending process for turning waste dual pane glass window units into thermal solar panels used to heat water see: www.CottageIndustySolar.com Married, with one daughter, Greg writes for intellectual property web sites and on Mac/Tech related issues. See Greg's art web site at http://www.gregmills.info He can be emailed at gregmills@mac.com)

 
AAPL
$102.50
Apple Inc.
+0.25
MSFT
$45.43
Microsoft Corpora
+0.55
GOOG
$571.60
Google Inc.
+2.40

MacTech Search:
Community Search:

Software Updates via MacUpdate

VueScan 9.4.41 - Scanner software with a...
VueScan is a scanning program that works with most high-quality flatbed and film scanners to produce scans that have excellent color fidelity and color balance. VueScan is easy to use, and has... Read more
Cloud 3.0.0 - File sharing from your men...
Cloud is simple file sharing for the Mac. Drag a file from your Mac to the CloudApp icon in the menubar and we take care of the rest. A link to the file will automatically be copied to your clipboard... Read more
LibreOffice 4.3.1.2 - Free Open Source o...
LibreOffice is an office suite (word processor, spreadsheet, presentations, drawing tool) compatible with other major office suites. The Document Foundation is coordinating development and... Read more
SlingPlayer Plugin 3.3.20.505 - Browser...
SlingPlayer is the screen interface software that works hand-in-hand with the hardware inside the Slingbox to make your TV viewing experience just like that at home. It features an array of... Read more
Get Lyrical 3.8 - Auto-magically adds ly...
Get Lyrical auto-magically add lyrics to songs in iTunes. You can choose either a selection of tracks, or the current track. Or turn on "Active Tagging" to get lyrics for songs as you play them.... Read more
Viber 4.2.2 - Send messages and make cal...
Viber lets you send free messages and make free calls to other Viber users, on any device and network, in any country! Viber syncs your contacts, messages and call history with your mobile device,... Read more
Cocktail 7.6 - General maintenance and o...
Cocktail is a general purpose utility for OS X that lets you clean, repair and optimize your Mac. It is a powerful digital toolset that helps hundreds of thousands of Mac users around the world get... Read more
LaunchBar 6.1 - Powerful file/URL/email...
LaunchBar is an award-winning productivity utility that offers an amazingly intuitive and efficient way to search and access any kind of information stored on your computer or on the Web. It provides... Read more
Maya 2015 - Professional 3D modeling and...
Maya is an award-winning software and powerful, integrated 3D modeling, animation, visual effects, and rendering solution. Because Maya is based on an open architecture, all your work can be scripted... Read more
BBEdit 10.5.12 - Powerful text and HTML...
BBEdit is the leading professional HTML and text editor for the Mac. Specifically crafted in response to the needs of Web authors and software developers, this award-winning product provides a... Read more

Latest Forum Discussions

See All

Qube Kingdom – Tips, Tricks, Strategies,...
Qube Kingdom is a tower defense game from DeNA. You rally your troops – magicians, archers, knights, barbarians, and others – and fight against an evil menace looking to dominate your kingdom of tiny squares. Planning a war isn’t easy, so here are a... | Read more »
Qube Kingdom Review
Qube Kingdom Review By Nadia Oxford on August 29th, 2014 Our Rating: :: KIND OF A SQUARE KINGDOMUniversal App - Designed for iPhone and iPad Qube Kingdom has cute visuals, but it’s a pretty basic tower defense game at heart.   | Read more »
Fire in the Hole Review
Fire in the Hole Review By Rob Thomas on August 29th, 2014 Our Rating: :: WALK THE PLANKUniversal App - Designed for iPhone and iPad Seafoam’s Fire in the Hole looks like a bright, 8-bit throwback, but there’s not enough booty to... | Read more »
Alien Creeps TD is Now Available Worldwi...
Alien Creeps TD is Now Available Worldwide Posted by Ellis Spice on August 29th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Dodo Master Review
Dodo Master Review By Jordan Minor on August 29th, 2014 Our Rating: :: NEST EGGiPad Only App - Designed for the iPad Dodo Master is tough but fair, and that’s what makes it a joy to play.   | Read more »
Motorsport Manager Review
Motorsport Manager Review By Lee Hamlet on August 29th, 2014 Our Rating: :: MARVELOUS MANAGEMENTUniversal App - Designed for iPhone and iPad Despite its depth and sense of tactical freedom, Motorsport Manager is one of the most... | Read more »
Motorsport Manager – Beginner Tips, Tric...
The world of Motorsport management can be an unforgiving and merciless one, so to help with some of the stress that comes with running a successful race team, here are a few hints and tips to leave your opponents in the dust. | Read more »
CalPal Update Brings the App to 2.0, Add...
CalPal Update Brings the App to 2.0, Adds Lots of New Stuff Posted by Ellis Spice on August 29th, 2014 [ permalink ] | Read more »
Baseball Battle Review
Baseball Battle Review By Jennifer Allen on August 29th, 2014 Our Rating: :: SIMPLE HITTINGUniversal App - Designed for iPhone and iPad Simple and cute, Baseball Battle is a fairly fun baseball game for those looking for something... | Read more »
Checkmark 2.1 Update Released, and it’s...
Checkmark 2.1 Update Released, and it’s on Sale for a Limited Time Posted by Jessica Fisher on August 29th, 2014 [ permalink ] | Read more »

Price Scanner via MacPrices.net

Labor Day Weekend MacBook Pro sale; 15-inch m...
B&H Photo has the new 2014 15″ Retina MacBook Pros on sale for up to $125 off MSRP. Shipping is free, and B&H charges NY sales tax only. They’ll also include free copies of Parallels Desktop... Read more
Labor Day Weekend iPad mini sale; $50 to $100...
Best Buy has the iPad mini with Retina Display (WiFi models) on sale for $50 off MSRP on their online store for Labor Day Weekend. Choose free shipping or free local store pick up. Price is for... Read more
13-inch 1.4GHz MacBook Air on sale for $899,...
Adorama has the new 2014 13″ 1.4GHz/128GB MacBook Air on sale for $899.99 including free shipping plus NY & NJ tax only. Their price is $100 off MSRP. Read more
It’s Official: Apple Issues Invitations To Se...
Apple has issued one of its characteristically cryptic press invitations for a special event to be held at the Flint Center for the Performing Arts in hometown Cupertino on Sept. 9, 2014 at 10:00 am... Read more
Tablet Shipments To See First On-year Decline...
TrendForce analyst Caroline Chen notes that when the iPad launched in 2010, it was an instant hit and spurred a tablet PC revolution, with tablets so popular that that notebook PC sales stagnated and... Read more
SOBERLINK Releases Apple iOS Compatible Handh...
Cypress, California based SOBERLINK, Inc., creator of the first handheld Breathalyzer designed to improve recovery outcomes, continues to show prominence in the mobile alcohol monitoring space with... Read more
New 21″ 1.4GHz iMac on sale again for $999, s...
Best Buy has the new 21″ 1.4GHz iMac on sale for $999.99 on their online store. Their price is $100 off MSRP. Choose free shipping or free local store pick up. Price is for online orders only, in-... Read more
Smartphone Outlook Remains Strong for 2014, U...
According to a new mobile phone forecast from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, more than 1.25 billion smartphones will be shipped worldwide in 2014,... Read more
Save up to $60 with Apple refurbished iPod to...
The Apple Store has Apple Certified Refurbished 5th generation iPod touches available starting at $149. Apple’s one-year warranty is included with each model, and shipping is free. Many, but not all... Read more
12-Inch MacBook Air Coming in 4Q14 or 2015 –...
Digitimes’ Aaron Lee and Joseph Tsai report that according to Taiwan-based upstream supply chain insiders, Apple plans to launch a thinner MacBook model either at year end 2014 or in 2015, and that... Read more

Jobs Board

*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
Senior Event Manager, *Apple* Retail Market...
…This senior level position is responsible for leading and imagining the Apple Retail Team's global event strategy. Delivering an overarching brand story; in-store, Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.