Unless you live under a rock, you probably know by now that AT&T is in the process of buying out T-Mobile for $39 billion. According to T-Mobile execs themselves, the US branch of Deutsche Telekom was not doing very well financially speaking, and this is all the iPhone’s fault.

According to the NY Times, things started going downhill for T-Mobile US in 2007, when customers would leave T-Mobile by the boatload to get on AT&T who was the only one selling the iPhone at the time. I was actually one of those people who left T-Mobile for the iPhone…

During 2010 alone, T-Mobile USA said it lost 390,000 contract customers to rivals.

“The iPhone effect cannot be underestimated in this decision,” said Theo Kitz, an analyst at Merck Finck, a private bank in Munich. “Without being able to sell the iPhone, T-Mobile was in an unsustainable position and T-Mobile USA became a problem child.”

Obviously the iPhone is not the only cause behind the sale of T-Mobile to AT&T but it undoubtedly played an important role.

  • PhilBurns

    The iPhone made AT&T, without it, AT&T would’ve never been able to purchase T-mobile.

    • Amoeba

      AT&T is the original phone company (Ma Bell) that the Feds had to break up in the 70s. the iPhone had nothing to do with “making” AT&T. as for the buyout, you’re probably right.

    • 7h0mas


  • Jj

    I too fell to the hype and switched from tmobile to att simply to attain an iPhone 4. I love the iPhone but hate att with there over priced everything.

  • BadKittie

    I love At&t. lucky for me I still have the unlimited data plan. I also love my iPhone 4.

  • Kylerayk

    I have been with Voicestream/T-Mobile for the last 11years. Their phones have always lagged behind (sucked) but that is why I love the unlock. I have been using unlocked AT&T phones for 9 of the 11 years. Tmo’s service didn’t start out the best but now, in my area, they are better than AT&T. I had to switch to att for work and after 2 weeks I switched back and have had my work reimburse me ever since. Tmo has been very solid for me.

  • Woody dog

    I switched in 09 to get 3GS

  • manuel

    I’m with Sebastien too. My transferring was a bit circling though. I always wanted an iPhone since about 2008. I switched to at&t from T-Mobile in 2010 but because at&t over priced everything, I ended up going back with T-Mobile with an unlock. Then I got an iPhone 4 and hated waiting for an unlock, which people are still doing if I’m not mistaken. I ended up going back to at&t since I couldn’t use my iPhone. I told myself “might as well go back and use the phone”. Worst mistake ever. I ended up selling my iPhone and going with Verizon. Luckily, it was at the same time when the iPhone went to them. Finally, I’m happy even though my story seem so complex and have my iPhone. Data actually works and I’ve never received a drop call.

    At least we now know why T-Mobile is so hellbent on trying to make those “PC v. Mac” commercials against iPhone’s. It’s based on the iPhone killing their business.

  • ogbza


  • Fred

    Sometimes I have to admit that despite overpricing issues Ive been quite happy with att’s unlimited data quality. I just cant imagine what it would have been like to only be able to use GPRS for the last 3 years.

  • That is really because iphone is too much better than T mobile