T-Mobile Calling Plans Cost $600 Less Than AT&T & Verizon

Consumer Reports survey says that T-Mobile customers are paying $15 to $50 less per month or $600 per year less than comparable plans from AT&T.  Will T-Mobile customers be able to keep these plans or will prices be raised by AT&T?  34 million T-Mobile customers are going to be forced to pay a higher rate if they switch phones in the future.  Not only that but AT&T would not have any GSM handset competitors and would be forced to pay monopoly rates and pass the costs onto consumers.  If existing T-Mobile customers switch or upgrade their phones in the future they will be forced into new AT&T plans.  The elimination of T-Mobile would remove the incentive to compete on price and pave the way to a duopoly market structure.  AT&T knows they can afford this merger because if they raise prices it will pay for itself in only a few quarters if customers don't leave.  T-Mobile is currently doing about $22B per year in annual revenue and if prices were raised by 30% it won't take long to pay for the $39B acquisition.     

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