Monday, March 21, 2011

TECH Update: Big Moves

I was going to wait to post a new post in this series, but with so much going on, I feel I must. There have been some very big moves made by different companies in the tech industry lately, so let us begin. 
AT&T buys T-Mobile:

As a T-mobile customer, I've had mixed feelings about a possible merger. A few days ago, AT&T officially announced it's acquisition of T-mobile for 39 billion dollars. The government still needs to officially give the stamp of approval to the merger (based on anti-trust laws). If they make the hurdle the move will be a smart one for AT&T for several reasons: First, the merger would make the combined company the largest phone service company in the United States by beating out Verizon. You won't be seeing any more Verizon commercials advertising their size.  Second, AT&T can use T-mobile's infrastructure to help strengthen it's data support for it's very large smartphone industry (mainly due to it's now-expired deal with Apple for the iPhone). On T-mobile's side of things, the merger buys out a struggling company that was late to the smartphone industry. 
 


 Stephen Colbert had an older piece about the confusing mergers that AT&T has went through in the past:
There is a lot of concern that the merger would further deteriorate the already limited competition on phone service. If approved, AT&T and Verizon will have control over 70% of the industry, not very competitive in most's eyes. Others are worried, that T-mobile's strategy of low payment plans to target lower income families will be thrown out the window by AT&T for more expensive plans. Then people will have to choose to go to a smaller and more limited network like MetroPCS and Spring, or the expensive companies like Verizon or stay with AT&T. 



I speculate, the move is a reaction to the end of AT&T's exclusive  contract for Apple's iPhone which became available to Verizon earlier this year.

Verizon 4G Network Tested:

The world is moving toward a 4G network. Most companies are leaving their 3G network for faster speeds. Without being too technical, Verizon is starting a 4G network called LTE. and after several high profile tests by different websites and organizations, Verizon's network GREATLY outperformed it's competitors, with the average uploading speech 37% faster than anyone else (see the link for more info and stats). This is clearly good news and a counter punch to the announcement by AT&T about buying T-mobile. If the deal is finalized, the two companies' roles will completely switch: In 2010 Verizon had the largest network, AT&T (more often than not) the fastest. In 2011, AT&T may have the largest with Verizon the fastest (4G network which is the future!)

Sprint Joins forces with Google:

In an effort to stay relevant, Sprint and Google announced a new partnership.  Sprint will now outsource it's voice-mailing system to Google Voice. The deal has benefits for both companies, where Google can charge for it's very low rates for international phone calls (increasing it's userbase) and Sprint provides a great voice-mail service without charging any users for it (the outsourcing saves Sprint in costs). Look for more partnerships that Sprint may take advantage to not be third place in a two man race.


Google Wins in Court:

Google's Streetview project for its Google Maps has won in a German court. This is great news for the company and allows it to continue it's work throughout the country. At least for me, I've used the service extensively to map out an area I plan on visiting that I've never been to before. I hope this all works well!

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