AT&T's surprise $39-billion acquisition of T-Mobile USA Inc. could lead to more consolidation in the U.S wireless industry, leaving the market with just two dominant providers — and the prospect of higher rates and fewer choices for consumers.

If approved by regulators, the newly expanded AT&T Inc. would have 130 million subscribers, allowing it to leapfrog arch-rival Verizon Wireless and its 94 million customers to become by far the nation's largest wireless carrier. Sprint Nextel Corp. would be a distant third.

The potential market shift could force Verizon to consider making a large acquisition itself, analysts said, possibly including Sprint. But Sprint itself may snap up one or more of the many smaller providers, such as U.S. Cellular and MetroPCS.

Read the complete Los Angeles Times story, “AT&T to buy T-Mobile, creating wireless giant.”

AT&T's surprise $39-billion acquisition of T-Mobile USA Inc. could lead to more consolidation in the U.S wireless industry, leaving the market with just two dominant providers — and the prospect of higher rates and fewer choices for consumers.

If approved by regulators, the newly expanded AT&T Inc. would have 130 million subscribers, allowing it to leapfrog arch-rival Verizon Wireless and its 94 million customers to become by far the nation's largest wireless carrier. Sprint Nextel Corp. would be a distant third.

The potential market shift could force Verizon to consider making a large acquisition itself, analysts said, possibly including Sprint. But Sprint itself may snap up one or more of the many smaller providers, such as U.S. Cellular and MetroPCS.

Read the complete Los Angeles Times story, “AT&T to buy T-Mobile, creating wireless giant.”