“AT&T Inc. said that its proposed $39 billion acquisition of T-Mobile USA Inc. would lower prices and increase service in large metropolitan markets, according to a regulatory filing touting the public benefits of the deal,” Eric Engleman reports for Bloomberg.
“The transaction proposed March 20 ‘will relieve significant capacity restraints faced by both companies and lead to improved service quality,’ according to a letter submitted yesterday by AT&T to the Federal Communications Commission,” Engleman reports. “The letter accompanied an analysis of the deal’s potential impact on 15 U.S. markets, including New York, Los Angeles and Washington.”
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Engleman reports, “If completed, the merger, which was proposed March 20, would combine the second- and fourth-largest carriers to create a new market leader, ahead of current No. 1 Verizon Wireless. The FCC and the Justice Department are vetting the deal.”
“Concerns are building among some U.S. lawmakers that the deal may harm wireless competition. Senator Herb Kohl, a Wisconsin Democrat who chairs the Senate Judiciary subcommittee on antitrust matters, opposes the transaction, saying it would further consolidate an ‘already highly concentrated market’ in a letter sent July 20 to Attorney General Eric Holder and FCC Chairman Julius Genachowski,” Engleman reports. “In a separate letter sent July 20 to Holder and Genachowski, Democratic Representatives Edward Markey of Massachusetts, John Conyers of Michigan and Anna Eshoo of California said the deal ‘raises serious questions regarding the future competitiveness of the wireless industry.'”
Read more in the full article here.
Related articles:
T-Mobile responds to U.S. Senator Al Franken’s decision to oppose AT&T purchase of T-Mobile USA – July 27, 2011
Sprint CEO Hesse plans to launch ‘nukes’ to block AT&T’s T-Mobile USA takeover – June 28, 2011
Trade Groups ask U.S. agencies to reject AT&T, T-Mobile deal – May 24, 2011
DOJ to launch in-depth investigation of AT&T’s plan to buy T-Mobile USA – May 3, 2011
Sprint blasts AT&T’s bid to buy T-Mobile USA; urges regulators to block deal – March 29, 2011
AT&T deal to face ‘steep climb’ at FCC – March 24, 2011
Verizon CEO: No interest in Sprint takeover; will not oppose AT&T’s purchase of T-Mobile USA – March 22, 2011
How Apple’s revolutionary iPhone led to the sale of T-Mobile USA – March 22, 2011
Consumer Reports’ publisher sees no ‘justification or benefits’ from AT&T’s purchase of T-Mobile USA – March 21, 2011
Sprint concerned over AT&T’s T-Mobile USA acquisition; complains of antitrust risk – March 21, 2011
T-Mobile: No Apple iPhone just yet after AT&T deal – March 21, 2011
AT&T to buy T-Mobile USA – March 20, 2011
What AT&T said was that price adjusted for quality of service would go down. This is code for “expect a price increase” I am a stockholder and I think they lie all the time.
So the quality goes up, which is the only way it can since it sucks
So we pay more for our phones to quit dropping calls
I say I’m all for it if they bring back unlimited for 15 dollars a
O th
So the quality goes up, which is the only way it can since it sucks
So we pay more for our phones to quit dropping calls
I say I’m all for it if they bring back unlimited for 15 dollars a
Month
Hmm.. Perish the thought of improving service via capital expenditures, eh?
Doesn’t ATT spend relatively less on capital expenditures on their wireless division than everyone else?
Sprint layed out how ATT could increase the capacity of what they already have by several hundred percent with some investment. ATT spends the money and they would have a better network.
ATT spends the money on T-Mobile, and they still have a crappy network.
Okay, look, I have never once had a problem with T-Mobile’s service. Maybe it is because I do not travel everywhere. I mean except for the fact I drive between Texas, California, and Chicago. I digress.
I do not care if it will improve service for AT&T. That is not a reason to counter the fact that T-Mobile is WAY more affordable for me and it WORKS just fine as it is.
AC tells FCC that that AT&T T-Mobile merger will ruin service and price for T-Mobile customers.
As t-mobile does offer more for a cheaper price than AT&T…. the edge network just straight up sucks. So for me to keep an iphone I’d just stay with AT&T or go to sprint if they ever get one.
My T-Mobile family contract for 4 phones costs about ~$101 per month. That’s more than I would like to pay, but less than I would have to pay with AT&T or Verizon (at least it was when I signed up). The downside is the crappy Gravity T phones that we got. The touchscreen is awful.
If AT&T is confident that its proposed $39 billion acquisition of T-Mobile USA Inc. will lower prices, then require that they sign a meaningful, legal guarantee to that effect prior to approving the deal. Otherwise that AT&T spewage means absolutely nothing once the deal is done.
How is it possible to get four smartphone plans for $101 per month??? Until two weeks ago, the only way it could have been done was on Virgin Mobile’s $25 per month (all text, all data, 300 minutes voice) smartphone plans. Today, even the cheapest non-subsidised smartphone plans start at $35 per month, and normal (2-year contract, with subsidy) smartphone plans are at least $50 per person.
How did you get such an incredible deal?
Every carrier is good along the Interstates. It’s when you get well away from the Interstates that matters.
Where I live, AT&T still only offers EDGE data coverage. They still have a lot of coverage hole in my vicinity.
Verizon is the champ here. Better coverage, and 3G. Still, there is a whole nearby town with no coverage from any carrier.
Come on, can’t they come up with some new BS reasons every now and then? Every large merger claims the same thing, and every time it turns out to be lie soon afterwards.
At&t customers will be able to use T-Mobile’s 4G network which is better than At&t’s and T-Mobile customers will be able to get the iPhone. It is a win any way you look at it.
The question is what At&t will do with their pricing structure. Most people here are merely guessing that it will be higher but At&t is competitive with their pricing and features, particularly with the iPhone.
As to the concern about keeping the market competitive after the merger, there are still plenty of competitors out there and it will help make the market even more competitive and benefit the consumer.
AT&T, like all the telecoms, is a scummy, lying company. They will screw us all and be happy to do it. No merger!!!
Don’t be like Obama, ATT. If your merger with Tmo will, as you say, “lower prices”, put them down on paper now for the politicians and us to see!
Make them put it in writing:” If you allow this acquisition, we guarantee that service quality will go up across the country and prices will drop from today’s rates”.
Then, let them merge.
Telecom is too condensed and uncompetitive as it is, largely due to consumer and FCC complacency.
The FCC, which represents American citizens, leases the airwaves to cell providers. Unfortunately, it has acted as lapdog for Ma Bell for 20 years now. If the FCC actually looked out for taxpayer interests, it would establish a standard 4g technology that all wireless companies would use starting in ~ 4 years, preferably common with the majority of the rest of the planet. It would refuse to license any frequencies to companies that locked down handsets for use exclusive on their network, and it would require that all companies offer consumers the option to purchase any handset without contract, as well as the option of at least one pay-as-you go plan with zero financial penalty for the consumer to cancel the service (beyond the price of the hardware).
Only when the playing field is actually level will there be truly fair competition. Europe is actually significantly superior in this regard. Why is it that America actively discourages anything but duopolies???