Better Buy: AT&T Inc. vs T-Mobile

The U.S. telecom industry is facing intense competition. The biggest culprit in the fierce landscape is T-Mobile (NASDAQ: TMUS), which has taken steps to undermine the status quo of the wireless industry and provide real competition for stalwart AT&T (NYSE: T). T-Mobile's efforts have helped it grab millions of new customers over the past four years. Meanwhile, AT&T is bleeding valuable postpaid phone subscribers.

While the net addition numbers may be impressive for T-Mobile, AT&T controls a huge share of the market. Its scale provides tons of cash flow, which has enabled it to make huge acquisitions such as DIRECTV while distributing a hefty dividend.

Let's take a closer look at both companies to see which stock makes a better buy.

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Source: Fool.com