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Mar 22, 2011

Why The AT&T & T-Mobile Deal Won’t Change the Industry

Why The AT&T & T-Mobile Deal Won’t Change the Industry - Mashable - Christina Warren

Christina Warren over at Mashable has a great write up on the proposed AT&T and T-Mobile Merger. A balanced article compared to most of the biased anti-merger reporting by most of the tech media. From the article.

Reports indicate that T-Mobile USA’s churn rate — the number of customers who leave the system for another provider — is around 25% per year. That’s double the industry average. We’ve seen numbers that indicate that T-Mobile’s churn is even higher than that. Customers are consistently choosing more expensive carriers over T-Mobile.

If T-Mobile is so great, why are they losing so many customers? Why does Deutsche Telekom want to sell this wonderful business? Because T-Mobile is not doing that great. Someone is gonna buy up T-Mobile, let the market decide.

Disclosure: The author of this post has a small financial interest in AT&T.
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