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AT&T and FCC – Fight over the FCC’s Merger Report
12/12/2011
By PJLouis
Tags: AT&T, FCC, wireless, T-Mobile, merger, Sprint, prepaid, Leap, MetroPCS

http://www.wirelessweek.com/News/2011/12/ATT-FCC-Clash-Merger-Report-Business/?et_cid=2354854&et_rid=259458880&linkid=http%3a%2f%2fwww.wirelessweek.com%2fNews%2f2011%2f12%2fATT-FCC-Clash-Merger-Report-Business%2f

 

Frankly, I am getting tired of reading about the AT&T/T-Mobile merger deal.  The reality is the FCC was originally all for the deal and then changed its mind when the Department of Justice gave it a thumbs down.  It is hard to take the FCC seriously in this matter.

The deal between AT&T and T-Mobile reduces carrier competition in the marketplace and reduces choice for the consumer.

AT&T is way out of line comparing its woes to that of Leap and MetroPCS.  Leap and MetroPCS are a fraction of the size of AT&T and were and still are targeting an underserved/unserved marketplace.  By the way, the prepaid marketplace was largely ignored by AT&T until the Great Recession.  However, even with current efforts AT&T is still not leading the way in the prepaid sector, which heavily characterizes the rural, underserved, unserved, and low income urban market places.

How does AT&T gobbling up the 4th largest carrier help the consumer?  AT&T and T-Mobile tend to serve the same economic strata of customers.  Does AT&T plan on serving the rural, underserved, and unserved markets?

Will AT&T actually grow the number of jobs in less than 2 years?  Anyone can say they will grow jobs over time, especially over 3 to 5 years.  However, growing jobs in the year after the merger deal is closed is another matter.  I would love to see AT&T guarantee job growth, than I might see value in the deal.  AT&T is calling the FCC’s analysis inconsistent and illogical.  Frankly, AT&T’s problems go away if they can absolutely guarantee everything it claims will happen; including job growth and broadband deployment.  I am totally 100% behind the consumer.  Just give me a guarantee with penalties if AT&T does not meet its promises.

A joint venture sounds easier to justify than a merger.