Late Sunday, AT&T announced that they would buy T-Mobile USA, the US wireless subsidiary of Deutsche Telekom, for $39 billion in cash and stock. The deal would unite the second-biggest wireless provider in the US with the 4th largest, and would vault AT&T ahead of Verizon as the biggest provider in the country. It would also decrease the major wireless providers in the US to three.
We know that consumers are very attached to their phones, particularly smartphones, and that they’re becoming very important for online and brick-and-mortar commerce. The mobile carrier-to-subscriber relationship is among the more intense brand relationships in the marketplace, as the services they provide increasingly tie our entire world together. We also know that, in terms of American consumer satisfaction, the wireless industry is near the bottom of the league tables, right down there with the Postal Service and airlines.
Given these facts, it’s not surprising that, upon announcement of the deal, T-Mobile went all-out to convince its customers that the sale to AT&T would be good for them. The brand devoted a big space on its consumer-focused website to talk about what the sale would mean for existing subscribers:

Behind that big banner, though, things are a little bit sketchier. Only two documents, a press release and an FAQ, await customers wondering how the deal will impact them. Neither are particularly engaging. A little human touch would go a long way here: a video message from the CEOs of each company, or, although it might be tough to nail down, a more precise explanation of the expected service upgrades for T-Mobile customers.
The best-in-class example of this in recent months is Southwest’s acquisition of AirTran; we talked about it back in September. Southwest’s landing page for the deal, LowFaresFarther.com, was launched at the same time the companies announced the acquisition. The content concisely explains exactly what customers can expect to gain from the union of the two companies (new routes), clearly sets customer expectations (particularly around fees), and includes video messages from the CEO of Southwest and officials from AirTran. It even goes the extra mile and includes resources for employees and communities affected by the deal.
But the really interesting case is AT&T, which, as of today, has no messaging around its purchase of T-Mobile on its the front page of its customer-facing site. And, on first glance, why would they? The purchase shouldn’t affect existing customers of the purchasing company, right?
But AT&T could be leaving a lot of value on the table, in the form of uncommunicated benefits consumers will see as a result of the deal. Many customers report dissatisfaction with AT&T’s coverage, for instance; service could be improved in areas where T-Mobile’s coverage is strongest. Some new phone models may eventually be made available to AT&T customers, as well. T-Mobile’s FAQ document lays out some of the ways they expect coverage and service to improve, but if I’m an AT&T customer, what are the chances I’ll go to that site to learn about the changes?
Further, with the dwindling number of major providers in the market, there’s legitimate concern that data and voice charges will go up for lack of competition. Wireless bills are among the biggest bills consumers pay, beyond housing. When mobile bills comprise such a big part of monthly budgets, customers will have concerns over rates in the wake of mergers and purchases like these. A little human-centric messaging on the front page could go a long way towards influencing grassroots opinion on the acquisition.
The bottom line: when it comes to an industry as intensely personal as wireless, and in industries where competition has dwindled to the point that there’s legitimate concern over rising rates, both parties in a corporate acquisition have to reassure their customers about the changes ahead.
MLC members, for more on post-M&A messaging and branding, check out our research brief, as well as our profile of Southwest’s efforts after their purchase of AirTran.