Verizon goes to bat for AT&T, defends T-Mobile merger

Business

Verizon Communications chief executive Lowell McAdam has gone on record in suggesting that the company’s biggest rival, AT&T, should be allowed to complete its proposed $39 billion acquisition of T-Mobile USA. “That match had to occur,” McAdam said at an investor conference on Wednesday, warning that the government has no choice but to allow such mergers unless it can focus on getting telcos the increased spectrum they need to operate. He continued, “We need to be very thoughtful on what the impacts would be to the overall industry if this is a way to regulate the industry without actually passing regulation.” Read on for more.

“I have taken the position that the AT&T merger with T-Mobile was kind of like gravity,” McAdam told investors. “It had to occur, because you had a company with a T-Mobile that had the spectrum but didn’t have the capital to build it out. AT&T needed the spectrum, they didn’t have it in order to take care of their customers, and so that match had to occur.” The CEO continued, noting that he has told the Federal Communications Commission and other government officials that blocking AT&T’s acquisition of T-Mobile without providing a solution to the current spectrum crunch will ultimately harm American consumers.

The United States Justice Department filed suit against AT&T late last month in an attempt to block the T-Mobile merger. AT&T quickly responded, saying, “The DOJ has the burden of proving alleged anti-competitive affects and we intend to vigorously contest this matter in court.”

97 Comments
  • http://www.TheGuruReview.net TGR

    Oh yeah let Congress make rules that are in the best interest of business and not the people.  Last, I heard the land by the people and for the people will not perish.  However, it never stated business. Which is why were are in this mess now.
     
    You speak of the EPA, yeah they are tainted because they do not work in the interest of the people and can be bought by big business. In the same case you live in this country and never saw any beef producer say their beef is MAD COW free???  Why because the government will not allow it.  Is it because Mad Cow is the same as Alzheimers in humans and guess who eats beef?  Strange IMO we need to regulate more.

       If T-Mobile fails isn’t that survival of the fittest? In response to SG

  • http://twitter.com/Ether813_IX Ian Ximinies

    Maybe the government will say something stupid, and say T-Mobile is too big to let fail…lol

  • Anonymous

    I kid about Prez Perry of course But Superguy is absolutely right! The telcos get bashed for poor service, bandwidth caps and speed toggling, by consumers and the government complains about the snails pace of delivering mobile broadband everywhere all the while auctioning spectrum like some rare caviar at top dollar to exclusive country club millionaire.

    The FCC and DOJ (2 arms of the same person/government) needs to know what each of the other is doing. ” So what is THEIR solution to the problem?” It can’t just be Merger Bad. The DOJ/FCC has to stop acting like a fickle whore and pick a dick!

    Dick 1. Let t-Mo die on the vine? same end result only worse since it delays the availability of spectrum – (In other words anyway you slice it T- mobile is gone!)

    Dick 2. Tell consumers who demand more spectrum for things like video streaming (video chat, netflix, hulu). – (Stop whining, we aint got no spectrum man so stay slow)

    Dick 3. Tell the marketplace yep the US WILL fall behind other nations in the race to ubiquitous mobile broadband and the speed race to 5/6G and beyond.

    Dick 4. Grant the merger with CONDITIONS (full support for Net Neutrality, pricing controls, customer bill of rights, mandatory sale of overlapping infrastructure/spectrum, the list is endless).

    So please stop this 4 carrier pipe dream. Again, ANYWAY YOU SLICE IT T-MOBILE IS GOOONE!

    • Bullet Tooth Tony

      You thru a nice option out there on #4…. what if they made them accept the open-access rules for their 700 like Verizon has attached to theirs?  Or attach those rules to the AWS spectrum that T-Mo now controls since it covers a greater swath of territory… hmmm… food for thought…

  • Anonymous

    Screw you Verizon. 

  • Anonymous

    Meanwhile, Verizon gives Sprint the glad eye. Licks its chops.

  • dwinsmith

    Now we know for sure this is no good, when their largest competitor (also a branch off Ma’Bell) wants them to grow.

  • http://pulse.yahoo.com/_YCHGT5KAKHAUZ55FASXLGVLMMU Anonymous

    THE STORY OF THE TWO MOST EVIL COMPANIES IN AMERICA. THEY ARE REALLY MEAN TO THE SALES PEOPLE IN MY VERIZON STORE…..MAKING THEM SALE OVER PROCED STUFF TO PEOPLE…TO FOR THE SAKE TO KEEP THIER LOW PAYING JOBS AT VERIZON.

  • http://pulse.yahoo.com/_YCHGT5KAKHAUZ55FASXLGVLMMU Anonymous

    SUPER GUY GET TO WORK BEFORE YOU GET FIRED….ANOTHER OBAMA THINKING HE KNOWS EVERYTHING…..LIBERAL POS

  • Anonymous

    You KNOW it’s a really bad move when your biggest competitor is rooting for your strategy!!!.

  • Anonymous

    It is common myth that T-Mobile is through if the merger with AT&T is denied. T-Mobile won’t close up shop and turn every customer’s phone off if the merger does not go through. All that will happen is that DT will continue to run T-Mobile USA until another suitor comes along. There are other companies that would like to enter the wireless arena and would buy them (although maybe not for 39 billion). My comment that there would only be two carriers if the deal is approved is because I believe that it would only be a matter of months before Verizon would buy Sprint. If a deal between AT&T and Sprint is approved it would pave the way for a deal between Verizon and Sprint. 

  • http://twitter.com/teknoswag tekno-swag.com

    Of course, then Verizon will buy Sprint!  

  • Drew

    “It had to occur, because you had a company with a T-Mobile that had the
    spectrum but didn’t have the capital to build it out. AT&T needed
    the spectrum…”. Verizon, you are also… full of shit!! At&t doesn’t need the spectrum. Can we stop playing the “hide-the-shell” game?? We know where the spectrum is and who’s hiding it…

  • Anonymous

    Of course Verizon approves of this merger. So when they buy of Sprint, the DOJ won’t be able to deny them.

    I am not sure what to think about a possible merger. I hated ma bell back in the day, but I am a happy AT&T Wireless customer now. DT is NOT going to keep TM afloat here forever. So maybe it is AT&T merger or goodbye. But I would like to keep 4 players in the game, or regulate rates VERY heavy in its only Verizon and AT&T by 2013

    • Anonymous

      It’s a common myth that DT will just shut down T-Mobile and everyone’s phone if the merger with AT&T is denied. Believe it or not T-Mobile USA is not bleeding DT dry. If that were the case than DT would have sold off T-Mobile a long time ago for a lot less than 39 billion dollars. All that will happen if the merger is denied (as it should be) is that DT will have to find another suitor for T-Mobile. There are a lot of companies such as cable operators and Google that know that the demand for wireless services is growing by leaps and bounds and would love to get into the game. 

  • Anonymous

    of course.  and verizon would love to swallow up sprint and other carriers and we’d be back to the old ma bell monopoly.

  • fredd0

    no, they want to watch sprint die and buy the assets for pennies on the dollar

  • Anonymous

    I hope the merger happens.  I think the DOJ is overstepping it’s bounds on this lawsuit.  Ever since blasting Microsoft, our government has had a chip on it’s shoulder about big business.  Too eager to sue anyone for any reason, valid or not.  ’tis a sad state of affairs we are in today.

    • Anonymous

      Thank you for you legal expertise in the area of Anti-Trust legislation. I happen to agree with you, it is common knowlege that big business always acts in the best interest of the American public. The DOJ and all government regulators should just go away and allow giant corporations to do as they please. It’s not like they would poison the environment, fix prices, practice discrimination, do business with brutal dictatorships, ship American jobs overseas, need a taxpayer bailout or cause a global fianacial disaster. All we have to do is take a look at the fine job done by Enron, MCI, Global Crossing, Arthur Anderson, Adelphia, etc… to realize that big business knows best.

      • Anonymous

        Opinion, just like yours.  Get a clue.  You’ve got personal issues, don’t share them any more please.

      • Anonymous

        Yes, you have your opinion and I really do respect it. I’m just pointing out why I disagree with you.

  • Anonymous

    He is right about the lack of Frequecy Spectrum for AT&T. I am not saying that prices will not go up if the merger happens. Noone knows for sure. But if this merger is stopped, T-Mobile, which is on shakey ground could go under in a couple of years. Then AT&T will just buy up little pieces of the company. But not all of it. Probably leaving the customers hanging out to dry.
    Just sayin…

  • http://www.youtube.com/user/TechDexs?feature=mhee E. Nelson

    I think he’s more concerned with the spectrum than the merger

1 2
blog comments powered by Disqus