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Posted by Charles Golvin on March 21, 2011
On Sunday AT&T announced its intent to spend $39 billion in cash and stock to purchase T-Mobile USA, the #4 wireless operator in the US. The move, much like Cingular’s 2004 acquisition of AT&T Wireless, would vault the #2 provider over Verizon Wireless into a dominant leadership position. Our clients can read Forrester’s take from a product strategy perspective shortly; here’s a summary:
If AT&T can get this through the regulators without having to divest too much, it’s a huge win for them, and the integration will go more smoothly than did Cingular and AWE. As with that acquisition, customers will benefit — eventually — with improved service quality, but they’ll likely pay for the benefit given the reduced level of competition.
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