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Depends on your location. My wife has T-Mobile and I have ATT. Out east in our area ATT is better and out west T-Mobile is better but one feature I like about T-Mobile best is the wifi calling, so anywhere there is a wifi that you can access, your phone can use that wifi as if it is a cell tower, thus you can even make local calls to the US when in foreign countries and have a strong signal when in areas with little to no signal, as long as you can access an open wifi signal or one that someone gives you the password to.
On an iPhone 4 definitely I would go with AT&T (or Cricket if you want to save some money). The iPhone 4 lacks most of the frequencies that T-Mobile uses for its network so you will likely have a poor coverage experience. You need at least an iPhone 5 in order to gain access to the majority of T-Mobile's network. Also the iPhone 4 cannot do Wi-fi calling. You'll need an iPhone 5C or newer.
T-Mobile is fine in urban and suburban areas, but if you travel much outside of cities your T-Mobile phone may not work. In rural CA AT&T works well, but not T-Mobile. Where I live T-Mobile and Sprint don't work at all, but AT&T is excellent with LTE speeds.
My GF has AT&T, I have T-Mobile. My T-Mobile iPhone 4s works better in her house than her AT&T iPhone 5.
YMMV, really depends on whose towers you are closest to in terms of service. Way out in the boonies, neither works well.
I think T-Mobile has better rates, as they started the no-contract revolution, which the other carriers are slowly adopting.
Also, the biggest difference, is that when you reach your data cap, AT&T will charge you for the data you use over your cap. On the other hand, T-Mobile simply throttles your data down to 2.5g speed, which I've found is still fast enough to stream music.
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