AT&T to defend T-Mobile acquisiton in D.C. this week

Business

The Senate Judiciary Committee will meet on Wednesday to discuss AT&T’s proposed $39 billion acquisition of T-Mobile USA from Deutsche Telekom — and AT&T’s competitors won’t be sitting quietly. According to The Wall Street Journal, Sprint’s CEO Dan Hesse, Viktor Meena of Cellular South, and Larry Cohen, president of the Communications Workers of America (CWA), will all be in attendance. Competitors are expected to grill AT&T’s Randall Stephenson on the deal that Hesse has said will “stifle innovation” and competition in the U.S. wireless market. While there are rumblings that AT&T has more money for lobbying than Sprint and other competitors, the nation’s largest wireless carrier, Verizon, will not be in attendance. “We are concerned this is an excuse for the government to insert itself into the marketplace,” Thomas Tauke, Verizon’s executive vice president of public affairs, policy, and communication, told The Wall Street Journal. Verizon’s concerned that AT&T could bow to government pressure on net neutrality regulation in an effort to get the acquisition passed. Sprint thinks the deal is bad for other reasons, and one spokesperson said the carrier will “explain [that it thinks] this takeover of T-Mobile is bad for consumers, bad for innovation and bad for the economy,” and added that Sprint sees the deal as a “job killer” that will create a “vertically integrated duopoly.” Meanwhile Stephenson has argued that the deal — over time — will actually be a “net job grower,” and that there’s already plenty of competition in the U.S. wireless market. Similarly, Cohen of the CWA, has called the deal a “victory for broadband proponents.”  Earlier this month the Department of Justice assured the public that it will perform an “in-depth” investigation of the deal.

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40 Comments
  • Bob G

    Viva the merger! Gotta have phone service out in the boondocks!

    • Anonymous

      And if neither already provides service in the boonies, how exactly will the merger add service needed to reach the boonies?

  • TOMMMMMM

    So the government broke up Ma Bell in 1984 only to bring it back in 2011?

  • LookLively

    As a T-Mobile subscriber, I’m not psyched about this merger…at all. Anything that involved AT&T usually ends….in dropped calls.

  • Fat Mams

    I hope congress shoots this merger down. All it will do is reduce competition and increase prices for everyone.

    • Anonymous

      But that’s not what matters is it? Say goodbye to T-Mobile USA. This sucks.

    • Dragon

      Actually, SOMEONE will buy T-Mobile because they are essentially going out of business. They have been losing a lot of money. So, competition WILL BE REDUCED regardless of who buys T-Mobile.

      Sprint–the only other major carrier with low rates–was the original moored purchaser. If Sprint buys them it will have to substantially rework it’s network to force one customer base (T-Mobile customers most likely) to a different network technology as T-Mobile and ATT both use FSM, but Sprint uses CDMA. So you’d have to buy a new phone. And, Sprint is cheap, so they don’t have the money to do that and make the purchase, so the prices would have to go up significantly.

      If ATT buys T-Mobile, no need to buy a new phone, and you would be grandfathered in on your cheap T-Mobile plan, PLUS when it’s time to renew, you would still have a low cost major option of Sprint. Of Sprint were to buy T-Mobile they would have to raise prices to fund te acquisition.

      The minor carriers like US Cellular etc., can’t afford to buy it. What other option would you prefer, Verizon? Verizon is bigger than ATT, at least as expensive, and would change the T-Mobile network to CDMA requiring you to buy a new phone.

      So, there are actually a lot of posiives about this merger compared to the other options.

      Just don make the mistake of thinking the status quo is an option, because T-Mobile can’t lose money forever.

      As for dropped calls, ATT is actually quite good except fot the iPhone. As long as you are using an iPhone on any network you will drop calls. But if you are using anything else, ATT is actually very good about not dropping calls. BUT, ATT’s rural service isn’t a strong point.

  • http://twitter.com/tn678 Tony

    Someone should tell Verizon that this is what the regulatory bodies are actually for. Buying votes was never the intention. I think maybe they’ve gotten too used to just being able to do whatever they want without any regard for the citizenry. If they allow the merger, we will basically have 2 wireless companies. Sprint is going down, and they aren’t getting any better. T-Mobile has been able to keep the bigger guys’ prices in check by keeping their’s low. We will no longer have that. Say hello to $200/month/400 minute phone bills.

  • drew dogg

    ATT knows they’re way behind. They have little LTE n little hspa+… They know VZW map for that 4g is just around the corner. They desperately need Tmo’s hspa+. If they would just have invested better into network instead of Apple… They could have saved themselves billions n billions of dollars. My $0.02.

    • Anonymous

      You really have no clue, just because you think it doesnt make it true. AT&T’s entire 3g network will soon be hspa+ with lte rolling out in a few months. The tmobile deal does however allow them to cover more areas with lte

      • drew dogg

        Oh they’re buying T-Mobile for LTE! Oh! Ur so smart wow thanks! Ur right I’m dumb.

      • Anonymous

        if you knew anything, yes…they are. buying tmobile will give them the ability to cover an extra 40+ million customers with LTE because of the airwaves that tmobile owns…wanna try again?

      • Drew

        @lowkey16:disqus So, Capt.Obvious how do you equate at&t rolling out LTE in a few months when this merger has even been passed, let alone voted on??

      • Anonymous

        @scribbles92:disqus where did i state anything about this tmobile deal being required for at&t to roll out lte in the next few months? at&t has plenty of their own spectrum to build a very large lte network, it simply needs tmobile for the long term in order to cover as many people as it needs to.

      • Drew

        @lowkey16:disqus You didn’t… You made the hysterical prophecy of at&t rolling out LTE in a few months. I never said you made this claim of requiring T-Mobile. But if you knew anything about what is taking place here you would know that this is what at&t themselves are using as their argument. They claim they NEED T-Mobile and their spectrum to successfully roll out LTE. End of story…

      • Drew

        “…Rolling out in a few months..”?? What crack pipe did you smoke that out of?? AT&T can’t even roll out HSPA+. It’s nonexistent bro.. These Atrix and Inspire “4G” phones can barely get 1Mbps down and 500Kbps up. You’ve lost your damn mind…

      • Anonymous

        so the 7.01mbps that i got in atlanta friday night was merely a figment of my imagination? right, ok. and the 1.2mbps upload that i AVERAGE in my own home also isn’t legit. don’t believe me, i could care less…just wait.

      • Anonymous

        Too bad they both have nearly the EXACT same footprint and putting LTE in the upper ends of the spectrum means stronger signal with shorter distance.

      • KCRic

        How soon with this be? Seeming as how they don’t have a single tower capable of hspa+ currently. Looks like they have a long way to go. Maybe you’re confused so I’ll give you the benefit of the doubt and give you some facts to correct your ignorance.

        T Mobile has hspa+ (21.1Mbps) and the new hspa++ (42Mbps)

        AT&T has hspa (14.4Mbps) and, well… that’s it.

        Somewhere in there is Verizon with “LTE” which I’ve yet to see go beyond 8-9Mbps on a good day.

        Sprint is Sprint, that’s all I can say. WiMax I’m sure is fine for smarphone use. It’s not like we’re running data servers from our phones… or are we?

  • Anonymous

    Pissing contest, commence!

  • Drew

    Sure at&t… I’ll believe whatever you tell me. So, let me get this straight, the Atrix 4G isn’t really 4G (and neither is any other handset you’ve given the name at the end of it as “4G”) but you’re telling everyone it is… LIAR!!! Creating even more consumer confusion. Now, what’s this about there being “plenty of competition” and how this merger will “create jobs”?? LMAO!! You’re so full of shit… Get your woefully lazy ass out there and build your network and stop pleading for a T-Mobile handout.

    • JD

      I wouldn’t call paying 39 billion a hand out.

    • Rtk777

      @Drew, On one aspect, your right about the handsets. The other aspect, your wrong. AT&T is not getting a handout from T-Mobile, they are flat out buying a a financially troubled subsidiary of Deutsche Telekom. Deutsche Telekom wants to stop the bleeding, so they are selling it off. AT&T just happens to be the one with the best offer. People shouldn’t be upset with AT&T they should be upset with Deutsche Telekom for not managing the company well and getting soo far into debt that they couldn’t see daylight.

    • Anonymous

      At&t only called hspa+ 4g because tmobile did first, it’s all marketing and they couldnt let tmobile tell everyone they have it and not them

      • KCRic

        AT&T doesn’t have hspa+ they have hspa. When you’re max downlink reaches 21.1 or higher let me know. Then you can roll with the big boys that have hspa+

  • Rtk777

    AT&T is not getting a handout from T-Mobile, they are flat out buying a a financially troubled subsidiary of Deutsche Telekom. Deutsche Telekom wants to stop the bleeding, so they are selling it off. AT&T just happens to be the one with the best offer. People shouldn’t be upset with AT&T they should be upset with Deutsche Telekom for not managing the company well and getting soo far into debt that they couldn’t see daylight.

    • Drew

      The reason I say they are waiting for a handout is their (at&t’s) incessant whining about how they will not be able to build out LTE without T-Mobile’s HSPA+. They have enough money and enough spectrum to do this without T-Mobile but which is easier, sit on your ass and buy what’s already in place or actually do the legwork and make it possible. Buying up companies and telling the Gov’t that it will create jobs is just bullshit…

      • Dylan

        That’s what Verizon has done, so what is different?

      • Drew

        Wrong…!! Verizon’s purchasing of Alltel was not predicated on them rolling out LTE and becoming a CDMA monopoly. Would’ve done it with or without Alltel. Apple’s and oranges…

      • Anonymous

        at&t hasn’t once said it couldn’t build out an lte network without tmobile, it is simply saying that the buyout would allow them to cover more customers. and regardless, they still have to build the network…tmobile doesn’t exactly have an lte network and just because they have an hspa+ network doesn’t mean that at&t doesn’t still have to overlap that network with new lte towers.

  • rickd

    T-mobile is doomed with out this merger.1Q report says it all.

    • Anonymous

      that’s true too. I don’t know where to go now. There will now only be ONE gsm provider where I live.

  • Allen Walker

    They’re just delaying the inevitable at this point. It’s going to happen..

  • Anonymous

    Weirdly im not a tmobile customer, but i don’t want it to happen honestly, it’s not really not good at all and everyone knows when businesses start getting big, they shit on their customers because they have the money to do it, it’s not about who’s the best carrier, it’s about who’s gonna screw you in the end to make you pay the most money, sprint may be small and they may not be the glorified best, but guaranteed they will want to keep you as a customer, as for everyone else who know they have the money, they don’t care. It’s pay up or shut up, point blank

  • http://webhostingreview.info/vps-hosting/ top vps hosting

    i don’t have any idea what’s going on between AT&T and T-mobile

  • Montoyaa11

    As an employee from T-mobile I see AT&T doing everything like paying the government off to get them to approval the deal. Let’s face it money talks especially in a government like ours. I see it as AT&T trying to keep up with Verizon’s evolving network since they are far behind with “4G phones” and no 4G network. DT put T-Mobile USA in financial ruin by hiring idiots who don’t know how to do their jobs let alone know how to run a business. Currently, T-Mobile has begun to pay us retail employees more money to perform upgrades and keep customers. Of course this is planned to make sure we retain customers for AT &T once the deal is approved. I know either way T-Mobile USA is screwed! If the deal goes through then it becomes part of AT &T and if it doesn’t go through then eventually filing chapter 11 while DT runs away with the money that is promised if the deal fails. There will be many of employees without jobs which is bad for the economy and ridiculously high plan prices for consumers!

  • Habdelgha

    I can understand people being worried about competition with tmobile being bought. What I am not worried about is AT&T becoming superior. Because I just left from tmobile and their service is utter crap. In Boston it’s not like I was out in the middle of nowhere.

  • Anonymous

    I think that will be very interesting to watch!
    http://www.totally-anon.at.tc

  • Sam G

    As I said previously, AT&T acquiring T-Mobile is not impressive. I live in Boston, one of the major cities in this country and I can’t even get signal when I am in a building away from the window. The signal is week, the call quality is poor, and if I am on campus and need to make a call, I have to pack all my stuff and and leave just to make a 2 minute call. In my opinion AT&T is going to be losing money by investing in such a crappy network that they’re going to have to spend even more just upgrading it.

    /rant

  • Anonymous

    Wether the buyout goes thru or not depends on how much AT&T is willing to pay to buy the politicians votes.

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