View Single Post
Old 08-16-2011, 02:10 PM   #2792
alkemical
Guerrilla Ontologist
 
alkemical's Avatar
 
rorrim|mirror

Join Date: Apr 2001
Location: Future
Posts: 43,096

Adopt-a-Bronco:
Prima Materia
Default

http://www.broadbandreports.com/show...-Merger-115652

An AT&T legal staffer inadvertently (and briefly) posted a damning internal document to the FCC's docket for the pending AT&T/T-Mobile merger. The document makes it clear that "AT&T is giving Deutsche Telekom $39 billion primarily to reduce market competition" and that the company's claims of bigger network buildouts and increased employment are utterly fictional.

Again, the reality appears to be that AT&T is giving Deutsche Telekom $39 billion primarily to reduce market competition. That price tag eliminates T-Mobile entirely -- and makes Sprint (and by proxy new LTE partner LightSquared and current partner Clearwire) more susceptible to failure in the face of 80% AT&T/Verizon market domination. How much do you think wireless broadband market dominance is worth to AT&T over the next decade? After all, AT&T will be first to tell you there's a wireless data "tsunami" coming, with AT&T and Verizon on the shore eagerly billing users up to $10 per gigabyte.

Regardless of the motivation behind rejecting 97% LTE deployment, the letter proves AT&T's claim they need T-Mobile to improve LTE coverage from 80-97% simply isn't true. That's a huge problem for AT&T, since nearly every politician and non-profit that has voiced support for the merger did so based largely on this buildout promise. It's also a problem when it comes to the DOJ review, since proof that AT&T could complete their LTE build for far less than the cost of this deal means the deal doesn't meet the DOJ's standard for merger-specific benefits.
alkemical is offline   Reply With Quote