T-Mobile responds to Sen. Al Franken’s recommendation against AT&T merger

By on Jul 27, 2011 at 9:01 AM
Business July 27, 2011

Minnesota Senator Al Franken sent a letter to the heads of the Federal Communications Commission and the Department of Justice earlier this week, stating that AT&T’s proposed $39 billion acquisition of T-Mobile USA was not in the best interest of the American public. “The competitive effects of a merger of this size and scope will reverberate throughout the telecommunications sector for decades to come and will affect consumer prices, customer service, innovation, competition in handsets and the quality and quantity of network coverage. These threats are too large and too irrevocable to be prevented or alleviated by conditions,” Franken wrote. The Minnesota democrat also said that the deal could cost thousands of Americans their jobs. T-Mobile issued a statement in response to Franken’s note late on Tuesday, stating plainly that Franken’s assessment of the deal is wrong. “While we respect Senator Franken, his analysis of our pending transaction is just wrong,” T-Mobile said in a note to the press. “The combination of T-Mobile and AT&T should be approved because it will deliver what consumers are looking for in the age of smart phones, tablets and mobile internet – speed, service quality and reduced costs. As is documented in our government filings, the combination of our two networks creates significant efficiencies that will trigger strong benefits for consumers. We are confident that a thorough review of the record will demonstrate the transaction advances the public interest.”

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  • Anonymous

    They lied when they said, “We respect Senator Franken.”

    • Anonymous

      They also lied in saying it would provide what customers are looking for – “reduced costs”. Like AT&T will ever charge a penny less than VZW ever!

  • Anonymous

    efficiencies means : we will be firing several thousand people. 

  • Anonymous

    lol, I guess the politicians pockets havent been “lubed” enough yet.  A few more suitcases full of cash should do it lol.

    http://www.web-privacy.au.tc

  • Steveonline

    Weird , I thought Franken was spot on because I have seen many times now what happens when big network and telecom deals like this go through.It screws the consumer at the end of the day and stifles innovation and competitive pricing.

  • Anonymous

    I have an idea – let them merge, with the condition that they cannot raise prices, and actually must lower them by some amount. If they are so confident in their statements about lower prices, then this should not be a problem… RIGHT? (In other words, I bet you they balk at this condition… because they are full of crap about this statement!)

    • teamosil

      Unfortunately price conditions never pan out like they are intended.  It would be far better than just letting the merger go through as is, but not great.  They find ways to get around them like misc fees and “new” services or by increasing something not covered by the condition.  For example, maybe the condition covers voice and data, but they jump their fees for text messages way up to get around it.  Or they would mess around with offering the plan at the rate they committed to offer it, but not publicizing it so normal consumers end up clicking on the more expensive, but more readily apparent, rate instead..  That kind of stuff.

      Also, conditions always come with an expiration clock.  AT&T is playing the long con.  IMO they would happily wait 7 years or whatever for a duopoly.  They’ve been at this monopoly game for more than 100 years now.  And if they violate the condition and the court case takes 2 years to resolve, then there are only five years.  That’s what they’re doing on their roaming conditions- burning the clock down sitting in court.

  • Isaac Rooles

    Of course they are going to argue that his views are wrong, the cash pot at the end of the rainbow is what’s talking. What else are they going to say. non-story.

  • Anonymous

    Like him or not, Senator Frankin is 100% correct. There will be massive layoffs if this merger goes through and the majority of those let go will be those over 40. Any intelligent person can see through AT&T’s lies about “improving service for the consumer”.

    • Youarehunguponagething

      Hey dude… it’s ok… it’s ok to get old.  You’ll be alright

  • http://twitter.com/pceasy PC Easy

    Don’t buy any of this crap. Look to our neighbors to the north. Bell and Rogers run almost everything, cell, home phone, cable, sports teams, stadiums, internet – and Canadians ares squeezed to death with fees and overpriced plans. Sooner or later we are going to have Comcast and AT&T running everything in this country. It will happen because they buy off our legislators.

    • zps

      bingo.   why are americans convinced a duopoly is good for competition?  

  • F1

    Can’t wait till their “request” is declined!

    Thank You

  • Anonymous

    I like how they didn’t even try to deny that people would lose jobs. And did anyone else nearly laugh when they read the “reduced costs” part? Yeah, sure, reduced costs — for AT&T.

    • Damn

      People will lose jobs if you don’t pay more.  Mind blown?

  • Anonymous

    I am starting to become a fan of Senator Franken. He seems like the only Senator in Washington actually looking out for his constituents.

  • Winski

    Haven’t the ATT clowns figured out that almost everyone DESPISES T-Mumble ??

    They treat their customers like dirt; have inferior product offerings; and seem NOT to get it that the previous two issues are truth ??

  • Anonymous

    When they mentioned reduced costs they didn’t mention for who.

  • stroberock

    if the merger is blocked, Tmo will go out of business and 30,000 people lose jobs.  Too much damage has been done to tmo based on the pending acquisition for it to survive if blocked.  I dont think the $8 Billion that ATT would have to give tmo would keep tmo’s heads above water.  Let the merger play out at this point.

  • CMC

    Eliminating competition and creating a duopoly is NEVER good for consumers. 

  • Anonymous

     Like Al even knows what a network.  He even knows less about creating jobs since, like obuma, he has never created one in his life. 

    Al Franken, a horrible comedian, a worse senator and an even worse American citizen.

  • Anonymous

    This makes a lot of sense dude. I like it.

    http://www.web-privacy.au.tc

  • Anonymous

    PLEASE T-MOBILE DON’T LET AT&T TAKE AWAY YOUR NAME

  • rhandy francois

    Why is tmobile throwing out propaganda 

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