Why Did AT&T Diss T-Mobile With This Ad?

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T-mobileWireless carriers AT&T (NYSE:T) and Deutsche Telekom’s (DTEGY.PK) T-Mobile were once very close. For example, back in 2011, the two companies were planning a merger, until the deal was tabled by the Federal Communications Commission and the U.S Justice Department.

But the highly-competitive nature of the wireless industry — along with the ruling by the FCC and the Justice Department — have pushed the two companies far apart. AT&T has used its dominance in the industry to put down its much smaller rival, which is now slated to join forces with MetroPCS (NYSE:PCS) if shareholders approve, snubbing the smaller operator.

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During the merger talks in 2011, the United States government explained that it had blocked the deal in order to protect the American consumer from anti-competitive practices to which industry consolidation can lead — but AT&T was still left with a spectrum problem. The rapidly-growing smartphone market in the United States has created a massive hunger for data, and in turn this has made carriers ravenous for more and more spectrum to support increased bandwidth use…

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