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Oh noooooo! AT&T snaps up T-Mobile.

att-worst-company-everJust when I thought I was out, they pull me back in. I’m not talking about Michael Corleone and the Mafia. It’s worse than the Mafia. I’m talking about AT&T.

Literally just yesterday I had the following conversation:

She: We’re running out of minutes. T-Mobile has a pretty good deal going now but that means signing another two-year contract.

Me: Sure, let’s go for it. We like T-Mobile. I have no problem committing for another two years. It’s not like they’re AT&T.

Now, of course, AT&T is swallowing T-Mobile in a deal worth $39 billion. So much for that.

This isn’t the first time this has happened to me. I used to be a Cingular customer, and I liked them. Decent phone quality, good customer service. Then they got swallowed by AT&T. Call quality turned into crap. Customer service?  A nightmare.

I had DSL service from a regional carrier a few years ago. They got snapped up by AT&T too. I’ve been a cable customer ever since.

Last year, when my AT&T wireless contract was finally up, I breathed a sigh of relief, ditched my Windows “smart” phone for Android, and jumped to T-Mobile. I should have known better. Assuming the deal goes through with regulators, I’ll soon be back in telecom hell.

AT&T claims that the T-Mobile deal will improve its crappy phone reception and poor Internet access. In my experience, though, AT&T routinely takes good things and turns them into offal.

T-Mobile’s got $20 unlimited data plans. You think AT&T is going to offer $20 unlimited data plans, I got a bridge in Arizona I want to sell you.

T-Mobile’s got an extremely well trained customer service squad. I mean, I can be pretty awful to a customer support rep when I’m steamed (and nothing makes me crankier than stupid technology snafus) but I talking to their Zen-like service reps usually calms me right down. What are the odds of AT&T – the poster child for terrible customer service — retaining that?

Also: T-Mobile usually hires spokesmodels like the luscious Catherine Zeta Jones and that dishy brunette in the pink-and-white polka dot dress . AT&T has Luke Wilson. I rest my case.

There are a few positives, I suppose. T-Mobile customers may get access to the Apple iPhone and local 4G networks faster than they might have otherwise. But I can’t say I’m anything other than miserable. And I’m not alone.

As I write this, a CBS TechTalk poll shows that 77 percent of consumers oppose this deal. Here’s The Atlantic’s Daniel Indiviglio whacking it with a stick:

Consumers will be another big loser — probably. Most of the time when consolidation occurs in an industry with few participants and high entry costs, you see oligopolistic economics become even worse. Firms can set prices higher than if there were more competitors in the landscape. Technological progress also generally slows, because there’s less incentive to compete.

But that assumes that AT&T and Verizon don’t ramp up competition even more fiercely now that they’ll be near equals. Could they start lowering mobile plan prices and providing bigger discounts on devices? It’s possible, but unfortunately, oligopolies tend to move in the other direction, making consumers worse off.

You say you’re a Sprint/Nextel customer and you’re happy about it? Don’t get too comfortable. I’d be surprised if you weren’t part of the Verizon family within the month. Very soon there will be two major US wireless companies. 

And then, who knows? Maybe just one. AT&T/Verizon – one telecom to rule them all. 

At which point, I might be willing to give up my cell phone entirely. With any luck, by the time the regulators get through chewing on that merger I’ll be in The Old Geeks Home, where it won’t matter any more.

What do you think – is AT&T-Mobile a good idea? Dial in your opinions below or email me: Dan@dantynan.com.

This post originally appeared on InfoWorld.

2 Responses to “Oh noooooo! AT&T snaps up T-Mobile.”

  1. on 22 Apr 2011 at 7:17 pm Simon

    A belated correction: Cingular didn’t get swallowed up by AT&T — Cingular’s parent company SBC Communications (the baby formerly known as Southwestern Bell) bought out its Ma (Bell) and rebranded itself and its various services. Yes, it was a case of reverse monopoly divestiture (re-vestiture?)

    So no, your wireless company didn’t actually change at all — it just changed names.

    I, however, was on the flip-side of the equation: prior to the 2005 SBC “merger” I was a wireless customer of AT&T and had a great plan, with the option to change minutes when needed without incurring a penalty. When Cingular took over, my contract was frozen; I couldn’t get any additional minutes unless I re-signed up under a new contract. Boo.

    That’s the case with the customers who get “taken over” — their original deals often get cast aside by the new owners.

    Lest you forget, prior to it being T-Mobile, it was VoiceStream, which was bought out by Deutsche Telekom’s wireless division in 2001. I had VoiceStream back then, and T-mobile handled the transition pretty well, since they weren’t trying to merge separate networks.

    The big fear right now is that AT&T will do away with T-Mobile’s current unlimited everything plans in favor of its own sucky metered offerings.

  2. on 18 Jul 2011 at 1:58 pm Nikhil

    AT&T service is THE worst in and across this country. I have been a customer for 12 years, so I know of what I talk…Not sure how anyone believes that with one less competitor they will actually have greater incentive to make it better?

    Read more: http://www.vaishwords.com/2010/11/rethinking-possible-with-at-wireless.html