If AT&T buys T-Mobile, It Would Create a Giant Wireless Network

Recently, the biggest acquisition is expected to take place in the world. AT&T Inc. and T-Mobile discloses his purchase of T-Mobile USA worth $39 billion. However, this possession still seeks the approval of the regulator which might take more than a year even if the carrier pledges to sell assets and expand rural coverage.

With the success of this acquisition, the US market would be left with only two dominant providers and will have 130 million subscribers. By this deal, AT&T will be allowed to leapfrog arch-rival Verizon Wireless along with its 94 million customers to become the nation's largest wireless carrier.

According to the research conducted by research firm EMarketer Inc, AT&T and T-Mobile when combined together have 39 percent of the market.

In regard to this deal, the U. S. Federal Communications Commission and consumer groups are quite concerned as this might reduce competition and consumer choices and might also push up the prices.

If this deal doesn't succeed, then AT&T may have to pay a breakup fee of $3 billion and some spectrum as well.

According to Jeffrey Silva, who is an analyst with Medley Global Advisors LLC in Washington, "AT&T-T-Mobile is apt to be scrutinized more thoroughly than any other merger to date by the Obama administration. The FCC is expected to come under heavy pressure from consumer advocates, public interest groups and congressional Democrats to block the deal".