AT&T Executive Randall Stephenson recently spoke at an event in New York and tried to smother rumors that with less competitors the prices for wireless would rise after the $39 billion dollar T-Mobile deal goes through. He referred to a government report that indicated a 50% decline in wireless prices despite the 5 wireless mergers that occurred over that period. He followed by stating that “The U.S. market “is the most highly competitive in the world.” Back in the day AT&T customers would pay $1.90 per megabyte of data on their phones and now pay an average of 16 cents which is quite a difference.
Stephenson also states that the AT&T network will receive a 30% boost in capacity and coverage that should alleviate many of the dropped call issues present in larger cities. AT&T is also now committed to spend $8 billion over a seven year period to reinforce it’s infrastructure. Other parts of the new deal include reducing roaming costs for subscribers that venture outside of their coverage area on occasion.
The deal is still being investigated by the FCC so it has not even come close to being approved. We can expect this investigation to last many months as the transition is not supposed to take place for 12 months. What do you think about this, do you think that the wireless rates will increase after the acquisition? Please write your opinion below in the comments area, we would love to hear it. [reuters]