"On the front line, T-Mobile’s aggressive pricing strategy does seem to be hurting AT&T. While T-Mobile added 800,000 high-margin, post-paid subscribers to its network in the fourth quarter, AT&T reported 566,000 post-paid additions. That’s below the 636,000 subscribers expected by analysts, and trails the 1.6 million post-paid subscribers that Verizon announced last week." Source: Forbes
"AT&T, the No. 2 wireless carrier in the United States trailing behind Verizon Wireless, added 566,000 contract customers during Q4. Almost 440,000 of the new subscribers were new tablet users, as the carrier continues to try and battle against rivals in an increasing effort to poach customers from one another." Source: TweakTown
Good luck fighting off Verizon while your customers are leaving for TMUS. Maybe AT&T should go after a target that can't fight back, like Sprint?
The price drop is due to the entire market taking a dive. Merger rumors are still happening- I don't think we'll see any significantly movement in either direction until something develops on that front.