AT&T To Buy T-Mobile

NEW YORK (AP) - No longer will customers have to make a choice between AT&T and T-Mobile as a wireless carrier. That's because AT&T says it will buy the smaller company from its German parent firm in a cash and stock deal valued at $39 billion.

The acquisition would make AT&T the largest cell phone company in the U.S. But while the terms are settled on between the companies, the deal faces the possibility of close regulatory scrutiny.

The union of AT&T and T-Mobile would reduce the number of wireless carriers with national coverage from four to three. It also would eliminate Sprint Nextel as a possible partner to join forces with T-Mobile.