They mean well, but....

Care2: Bigger AT&T = Less Choice, Higher Prices!

Somehow along the way, I got subscribed to updates from a petition site, Care2.  This latest one is against AT&T's acquisition of T-Mobile, which I find silly for a multitude of reasons.  At the very least, T-Mobile phones are now using AT&T cell phone towers (which explains why when I was camping this week all of us on Verizon had crap service but everyone on AT&T and T-Mobile could actually get reception), which is good news for T-Mobile customers.

While the petition states such issues such as AT&T poised to be the largest cell phone company with this acquisition and forcing higher rates of service on (former) T-Mobile customers, the e-mail sheds a bit of a different light such as less competition (implying that AT&T is heading towards monopoly):

A merger between AT&T and T-Mobile would give AT&T control of more American's cell phones than any other company, allowing them to more easily take out the rest of the competition.

Competition between companies creates innovation in new products, better service and lower rates. Without it, American consumers would be at the whim of the corporation in charge.

As consumers, we have to stand up to giants like AT&T. T-Mobile already charges less than AT&T and T-Mobile customers will see a major hike in prices if the merger is allowed to go through.

Yes, these are valid issues in some respect.  However, let me outline the reasons why I don't think there needs to be a petition at all.

1.  "...The FCC is seriously considering allowing AT&T to swallow competitor T-Mobile, and control more Americans' cell phones than any other company."
   Yes, AT&T will most likely gain the largest market share with the acquisition, according to 2010 data.  For the first 3 months of 2010, Verizon held 31.1%, AT&T had 25.2%, and T-Mobile held around 12% of the market share.*  Combining AT&T and T-Mobile with these numbers gives them 37.2% of the market share, a 6% increase over Verizon.
   
   However, a lot has happened in the cell phone world since 2010.  One of the main things that can potentially have an impact on AT&T's market share is the recent (February 10, 2011) release of the iPhone on Verizon.**  Considering AT&T's notoriously horrible service that even this petition cites, this has the great potential to cause many people to migrate services, as many iPhone supporters signed AT&T contracts simply because they were the only carrier that the iPhone was available on.  Soon after the iPhone came out on Verizon, some friends ran a small test of the carriers, looking at 3G and call connection speed.  Verizon won both times.
   
   I feel that The Oatmeal best summed up this in his 'State of the Web' comic from Winter 2010.  (Seriously, go check it out).  With much better service, how many iPhone devotees will continue to stay with AT&T?***
   
2. "A merger between AT&T and T-Mobile would give AT&T control of more American's [sic] cell phones than any other company, allowing them to more easily take out the rest of the competition."
   
   Citing the percentages above, when the next largest company after the merger only controls 6% less of the market share than you do, not including the fact that neither control over (or even close to) 50% of the market share, I think this is a bit of a scare tactic.  After the merger, there will be AT&T, but there will also still be Verizon, Sprint, Boost Mobile, Virgin Mobile, Metro PCS, and a number of other companies that still have a solid number of customers.  If Verizon and AT&T merged, that would be a huge issue as they would control nearly 70% of the market share.  However, as both companies are operating strongly I don't see that as even a remote possibility.  The only thing I think anyone would be in danger of is a two-company system in which Verizon and AT&T buy up all the remaining companies and just compete between themselves.
   
   Even on this, another point has to be taken into consideration.  Both AT&T and Verizon have eliminated their unlimited data plans, along with a host of other carriers.  For people not grandfathered in on their contracts with an unlimited plan, I can foresee them moving to one of the other, smaller carriers that still provides that service.  This has the opportunity to create more diverse competition, not less of it.
   
3.  "T-Mobile already charges less than AT&T and T-Mobile customers will see a major hike in prices if the merger is allowed to go through."
   This has the potential to be a valid point.  AT&T, once the acquisition is finalized, will control all contracts and will most likely do away with any low pricing that T-Mobile currently offers.  However, T-Mobile has already stated that even after the acquisition is finalized, their customers will be allowed to finish out their contracts with no price increases.****  As I have stated before, after that, customers that are unsatisfied have the option to switch carriers.  While T-Mobile is relatively inexpensive compared to AT&T, so are other companies.

Yes, there are some potential negatives to come out of this merger.  T-Mobile customers may have a rate increase after their contracts expire, and AT&T's service in most aspects pretty much sucks.  However, the beauty of the free market (which I think will be one of the few times I use that phrase) is that if customers don't like something, they can make a statement with their money.  Don't like AT&T?  Move to one of the countless other mobile phone carriers in the country, and take your money elsewhere.  It may be a pain to search for that perfect cell phone company, but I seriously doubt that this acquisition is the harbinger of doom that the Care2 people seem to be implying it is.

*PPCGeeks: Wireless Market Share by Carrier & Devices; May 7, 2010.
**Fox News: Verizon Finally Unveils iPhone; January 11, 2011.
***Full disclaimer: I am totally devoted to Verizon, having been a customer since approximately middle school.  I have also heard a lot of AT&T customers complain about their service.  It's kind of how I am with Hewlett-Packard vs. Dell (hint: never buy a Dell!).
****T-Mobile: Q&A: More Information About AT&T Acquisition of T-Mobile USA; March 20, 2011.