In releasing its report on the proposed wireless merger, the Yankee Group has added its voice to those of the many critics who have contended that AT&T's T-Mobile acquisition would lead to the emergence of a duopolistic wireless telecom market controlled largely by Verizon and AT&T. Opposition to the proposed merger has united both consumer advocacy groups such as the Consumers Union and rival wireless carriers such as Sprint. Sprint CEO Dan Hesse argued that the newly merged wireless company would have "tremendous" power over the wireless market and would be bad for consumers.
Provided it passes regulatory muster, AT&T's T-Mobile acquisition will be the fourth major wireless carrier merger in eight years, following AT&T-Cingular in 2004, Sprint-Nextel in 2005, and Verizon-Alltel in 2008. AT&T would become by far the largest wireless carrier in the United States with more than 130 million subscribers.
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