In the largest deal the wireless industry has seen since 2004, AT&T has agreed to buy T-Mobile USA for $39 billion in cash and stocks. In acquiring T-Mobile from parent company Deutsche Telekom, AT&T will pick up an extra 34 million wireless customers, and will provide service to about 43-percent of all U.S. cell phones, making it the country's largest network operator. At the end of 2010, the company boasted about 95.5 million wireless subscribers -- only slightly more than Verizon's 94.1 million.

Before being finalized, the acquisition must be approved by the FCC and the Department of Justice. Last year marked the first time that the wireless industry failed to meet the FCC's standards for market competition, which may not bode well for a deal combining America's second and fourth largest mobile operators.

Under the deal, AT&T promises to expand its Long-Term Evolution (LTE) wireless technology to an additional 46.5 million customers, including many in rural areas. Combining its infrastructure with T-Mobile's could also improve service for iPhone users, and likely won't involve too much heavy lifting, since both companies already rely on the same GSM technology.  More... (source: Switched)