AT&T’s surprise $39-billion acquisition of T-Mobile USA Inc. could lead to more consolidation in the U.S wireless industry, leaving the market with just two dominant providers — and the prospect of higher rates and fewer choices for consumers.

If approved by regulators, the newly expanded AT&T Inc. would have 130 million subscribers, allowing it to leapfrog arch-rival Verizon Wireless and its 94 million customers to become by far the nation’s largest wireless carrier. Sprint Nextel Corp. would be a distant third.