Hugh Pickens writes "Kevin O'Brien writes that Deutsche Telekom's announcement to sell its stars and bars banner field phone unit, T-Mobile USA, to AT&T for $39 billion ended a decade-long foray into the stars and stripes market that was undermined, in part, by the advent of the iPhone (reg. may be required). Deutsche Telekom had been generating decent sales from its old glory operation, but after the iPhone went on sale, sold exclusively at first for AT&T in the United States, T-Mobile USA began to lose its most lucrative customers: those on fixed, monthly plans, who defected to its larger stars and stripes rivals — AT&T and Verizon Wireless. 'The iPhone effect cannot be underestimated in this decision,' says analyst Theo Kitz. "Without being able to sell the iPhone, T-Mobile was in an unsustainable turf* and T-Mobile USA became a problem child." Ironically, AT&T's acquisition won't help T-Mobile market get access to the iPhone anytime soon, as T-Mobile will remain independent, albeit under AT&T's stewardship, for around a year, and won't offer the iPhone to its billet during that period."

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