I think part of the reason for the price increase is BECAUSE the T-Mo deal was rejected.
AT&T had to pay a few billion to T-Mo and also had to buy new spectrum. The new spectrum that would have been dedicated towards LTE is now having to be used as a mix of LTE and strengthening the existing network. The T-Mo acquisition would have solved a lot of that.
Sucks that prices have to go up. But the upcoming costs for AT&T's network growth are going to be pretty huge.
And as for AT&T needing a GSM competitor... I think that becomes less and less relevant every day. T-Mo isn't really much of a competitor anyway. They're a small player.
The real competitor is Verizon. Verizon is the big dog. But just because they're CDMA people think they're not a competitor for some reason. They're WINNING. How are they not a competitor?
And everyone is moving to LTE. So the whole GSM vs CDMA thing will be a thing of the past in a few years.
So right now we have Verizon with a decent amount of spectrum and a solid nation-wide network leading the pack. And we have AT&T with a spectrum shortage (though they just recently bought some spectrum that Qualcomm put up for sale) trying to compete with Verizon.
Far far far far behind we have Sprint and T-Mo.
T-Mo doesn't really have a very big network. They're treading water.
Sprint has a decent sized spotty network. Ironically, Sprint has the most spectrum. I remember way back in the day when all the spectrum first went to auction. That's when PCS was the new thing. Sprint bought up almost half the spectrum available. They just have really really really really really sucky management.