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What Lessons can Canada Learn from the AT&T / T-Mobile Deal?
AT&T and T-Mobile Enter into a Merger Agreement
Recently AT&T entered into an agreement to buy out T-Mobile for $39 Billion US. It has caused a stir south of the border in part because T-Mobile and AT&T are the only GSM providers with national coverage in the USA. As such the loss of T-Mobile establishes an effective monopoly for AT&T in the GSM market.
Both T-Mobile and AT&T have extensive infrastructure and penetration into most American mobile markets although AT&T is three times as large as T-Mobile. Notwithstanding the size difference the loss of T-Mobile means a net reduction in the number of available choices in the market of one in most places. This brings down the number of available carriers as low as 4 in some markets, although most areas will still retain 5 or more available cellular carriers; just not using GSM technology.
