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
$100.86
Apple Inc.
-0.77
MSFT
$46.76
Microsoft Corpora
+0.52
GOOG
$579.95
Google Inc.
+6.85

MacTech Search:
Community Search:

Software Updates via MacUpdate

Capture One Pro 8.0.0.433 - RAW workflow...
Capture One Pro 8 is a professional RAW converter offering you ultimate image quality with accurate colors and incredible detail from more than 300 high-end cameras -- straight out of the box. It... Read more
Adobe Acrobat Pro 11.0.09 - Powerful PDF...
Adobe Acrobat allows users to communicate and collaborate more effectively and securely. Unify a wide range of content in a single organized PDF Portfolio. Collaborate through electronic document... Read more
Adobe Reader 11.0.09 - View PDF document...
Adobe Reader allows users to view PDF documents. You may not know what a PDF file is, but you've probably come across one at some point. PDF files are used by companies and even the IRS to... Read more
iFFmpeg 4.6.1 - Convert multimedia files...
iFFmpeg is a graphical front-end for FFmpeg, a command-line tool used to convert multimedia files between formats. The command line instructions can be very hard to master/understand, so iFFmpeg does... Read more
NTFS 11.3.62 - Provides full read and wr...
Paragon NTFS breaks down the barriers between Windows and OS X. Paragon NTFS effectively solves the communication problems between the Mac system and NTFS, providing full read and write access to... Read more
OS X Yosemite 10.10 DP8 - Developer Prev...
Note: This is a Developer Preview. You must be a registered Apple Mac Developer to download this update. You can also sign up for the free OS X Beta Program to download and preview public beta... Read more
FotoMagico 4.5 - Powerful slideshow crea...
FotoMagico lets you create professional slideshows from your photos and music with just a few, simple mouse clicks. It sports a very clean and intuitive yet powerful user interface. High image... Read more
Screenshot Path 1.2.1 - Change the defau...
Screenshot Path lets you change the folder where OS X saves screenshots. Screenshots are saved by default to the user’s desktop. This is handy for the occasional screenshot but those looking to take... Read more
Fantastical 1.3.16 - Create calendar eve...
Fantastical is the Mac calendar you'll actually enjoy using. Creating an event with Fantastical is quick, easy, and fun: Open Fantastical with a single click or keystroke Type in your event details... Read more
GIMP 2.8.14 - Powerful, free image editi...
GIMP is a multi-platform photo manipulation tool. GIMP is an acronym for GNU Image Manipulation Program. The GIMP is suitable for a variety of image manipulation tasks, including photo retouching,... Read more

Latest Forum Discussions

See All

Zynga Unveils First Look at Looney Tunes...
Zynga Unveils First Look at Looney Tunes Dash! Posted by Ellis Spice on September 16th, 2014 [ permalink ] Be vewy, vewy qwiet. I’m hunting wunners featuwing wabbits, and luckily, it’s duck season wunner season. | Read more »
Guardians on the Go – How to Connect to...
At this point I’m relatively certain most of the country is familiar with Destiny. And for those looking to augment their game a bit, Bungie has changed their Bungie Mobile Companion App to Destiny Companion. | Read more »
Kunin Review
Kunin Review By Jordan Minor on September 16th, 2014 Our Rating: :: SHURIKEN DO ITUniversal App - Designed for iPhone and iPad Kunin is a nervous test of ninja reflexes.   Developer: Dodreams Price: FREE Version Reviewed: 1.0.1... | Read more »
4 KEMCO Titles are Just $0.99 for a Limi...
4 KEMCO Titles are Just $0.99 for a Limited Time Posted by Jessica Fisher on September 16th, 2014 [ permalink ] KEMCO RPGs Destiny Fantasia, Infinite Dunamis, Bonds of the Sk | Read more »
Introducing Flash, the Latest Wearable F...
Introducing Flash, the Latest Wearable Fitness Monitor from Misfit Posted by Jessica Fisher on September 16th, 2014 [ permalink ] The Misfit Flash is the newly-released fitness and sleep monitor from | Read more »
Hyper Trip Review
Hyper Trip Review By Jennifer Allen on September 16th, 2014 Our Rating: :: HYPER TWITCHYUniversal App - Designed for iPhone and iPad Tough and unforgiving, Hyper Trip is a bit like Snake – if Snake was really harsh.   | Read more »
Collectible Card Game Earthcore: Shatter...
Collectible Card Game Earthcore: Shattered Elements is Set to Arrive on iOS in 2015 Posted by Ellis Spice on September 16th, 2014 [ permalink ] Polish developers | Read more »
Boogey Boy Review
Boogey Boy Review By Jennifer Allen on September 16th, 2014 Our Rating: :: PRETTY BUT BASICUniversal App - Designed for iPhone and iPad It looks delightful but lack of Game Center support and more variety really affects the fun... | Read more »
Vizzywig 4K (Photography)
Vizzywig 4K 1.0 Device: iOS iPhone Category: Photography Price: $999.99, Version: 1.0 (iTunes) Description: REQUIRES: iOS 7 on iPhone 5S with 32GB or 64GB. (Do not use iOS 8)The world's FIRST mobile 4K video capture, editing and... | Read more »
The Sleeping Prince Review
The Sleeping Prince Review By Jennifer Allen on September 15th, 2014 Our Rating: :: RESTRICTIVE KINGDOM SAVINGUniversal App - Designed for iPhone and iPad The Sleeping Prince looks and feels great to play, but its lack of peril and... | Read more »

Price Scanner via MacPrices.net

Sprint offers 16GB iPad mini for $199.99 with...
Sprint is offering 1st generation 16GB iPad minis for $199.99 with a 2-year service agreement. Standard MSRP for this iPad is $429. Their price is the lowest available for this model. Read more
2.5GHz Mac mini remains on sale for $549, sav...
B&H Photo has the 2.5GHz Mac mini on sale for $549.99 including free shipping. That’s $50 off MSRP, and B&H will also include a free copy of Parallels Desktop software. NY sales tax only. Read more
Apple refurbished iMacs available for up to $...
The Apple Store has Apple Certified Refurbished iMacs available for up to $300 off the cost of new models. Apple’s one-year warranty is standard, and shipping is free. These are the best prices on... Read more
13″ 2.5GHz MacBook Pro offered for $100 off M...
B&H Photo has the 13″ 2.5GHz MacBook Pro on sale for $999.99 including free shipping plus NY sales tax only. Their price is $100 off MSRP. Read more
Free GIMP Professional Grade Graphics App Ver...
The latest 2.8.14 version of the oddly-named GIMP (acronym for: GNU Image Manipulation Program) open source, high-end image editing and creation alternative to Adobe’s Photoshop and refuge from... Read more
Apple Announces Record Pre-orders for iPhone...
Apple has released metrics showing a record number of first day pre-orders of iPhone 6 and iPhone 6 Plus, with over four million sold in the first 24 hours. Demand for the new iPhones exceeds the... Read more
10% off iPhone 6 and 6 Plus Otterbox cases
Get 10% off on popular Otterbox iPhone 6 and iPhone 6 Plus cases at MacMall through September 19th. Use code OTTERBOX10 to see the discount. Read more
15-inch MacBook Pros on sale for up to $125 o...
Amazon has the new 2014 15″ Retina MacBook Pros on sale for up to $125 off MSRP including free shipping: - 15″ 2.2GHz Retina MacBook Pro: $1899.99 save $100 - 15″ 2.5GHz Retina MacBook Pro: $2374... Read more
27-inch 3.2GHz iMac on sale for $1698, $101 o...
Abt has the 27″ 3.2GHz iMac on sale for $1698 including free shipping. Their price is $101 off MSRP. Read more
More To Making A Larger iPad Than Expanded Sc...
CNET’s Ross Rubin has posted a thoughtful analysis of prospects for a larger display iPad Pro, noting that Microsoft and Samsung currently have the large-display touchscreen tablet category to... 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
*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
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.