You rarely see a company that does as much business with federal regulators as AT&T does attack them as ferociously as the phone giant did today. AT&T is livid over an FCC staff study that concluded its $39B wireless phone acquisition of T-Mobile would be anti-competitive and result in lost jobs. The report, released yesterday, ”is so obviously one-sided that any fair-minded person reading it is left with the clear impression that it is an advocacy piece, and not a considered analysis,” AT&T Senior EVP External & Legislative Affairs Jim Cicconi said in a blog post. He adds that the report “cherry-picks facts to support its views, and ignores facts that don’t,” and “treats its own speculations as if they were fact.” Calling the staff effort ”not the fair and objective analysis to which any party is entitled,” Cicconi also blasted the FCC for releasing the document. AT&T withdrew its merger application at the agency after the FCC moved to block it, although the phone company hasn’t formally abandoned the effort to acquire T-Mobile. By making the report public, he says, the FCC showed that “this was intended more for advocacy and to impact public perceptions. And neither is a proper basis for action by a regulatory agency.”
Consumer groups, which opposed the AT&T deal, rushed to the FCC’s defense. Media Access Project policy director Andrew Jay Schwartzman called the report “thoroughly documented.” He adds that AT&T ”takes advantage of the fact that some of the most damaging findings in the report are from confidential documents which AT&T has refused to make public.” And Consumers Union policy counsel Parul Desai says AT&T’s claims that it was treated unfairly “are simply unfounded and an attempt to distract from the truth — that this merger means higher prices and fewer choices for consumers.”


ok I should be upfront and state that I have been a tmobile customer since 9/2001.
Of course AT&T is going to say that this report is one sided, because (being 30 pages deep in this report as I type this post) the FCC is pointing out great claims of how t-mobile customers would be affected.
Particularly legacy plan members like myself.
Page 26 foot note 149 paragraph 2:
“Overtime,however, many T-mobile customers would be expected to switch out of their legacy plans and obtain services from AT&T or other providers……
In consequence, there is no reason to expect that former T-mobile customers that eventually choose an AT&T plan will make the demand for AT&T products more elastic and undermine the unilateral incentive to raise price described here”
Well yeah. One of the many MANY reasons i haven’t gone to AT&T is the fact that the plans are more expensive and the customer service/actual service is quite poor. If this merger goes through (by the grace of god IMO) i am dropping everything and walking over to sprint.
The problem with all this is DT owns Tmobile USA. It makes no money for them. The federal government can’t force them to keep running a company. So what if DT just says lets shut it down and sell off the assets? How does that benefit anyone?
There is no good reason for the government agencies to oppose this merger, in fact it is fairly short-sighted. ATT and Tmobile have infrastructure compatabilities that make them a great match. If they oppose AT&T they would / will oppose Verizon as well. Sprint is the other option but Sprint is barely staying alive and a Tmobile / Sprint merger would be a disaster given their differences and their independent struggles.
This leaves a new competitor but who will invest that kind of money to be a second rate competitor in one of the most capital intensive businesses around? Nobody.
The government need not only worry what happens if the merger goes through but they need to analyze what happens if it does not. The outcome is much worse if they quash it. If likely means less competition, innovation and jobs.
Dutch Telecom is just not going to sit there and say “oh we’ll I guess we need to just keep running this unprofitable business.”
Uh, it’s Deutsche Telecom, not Dutch Telecom.
If DT doesn’t want to run T-Mobile they can undoubtedly find someone who does and sell it to them.
In the meantime, fewer telecoms, less competition, bad for people. End of story. You’d have to be drunk to believe an AT&T-and-Verizon wireless market, with Sprint an ever-distant third, would be anything but a living hell for consumers.
Who, exactly, do you propose purchase T-Mo?
Verizon or Sprint, perhaps?
The simple fact is that AT&T has the unique ability to merge T-Mo and make great use of its compatible technology, the way no other company could.
Verizon and Sprint use very different and incompatible technologies, so the benefit of either of them purchasing T-Mo is muted at best.
AT&T can quickly integrate with T-Mo’s network and begin providing millions of customers with 4G LTE coverage in short order.
Let’s not be short sighted here. The truth is T-Mo does not want to compete anymore, so we need to move on to the next best solution. The solution proposed by AT&T is technologically feasible and would be quicker to implement than any other.
If this merger does not go through I can only imagine what will happen to T-Mo and its customers…
@Tim
If this deal does not go through, I imagine that DT will appreciate that they just earned a $3 billion of cash, $2 billion of spectrum and a $1 billion roaming agreement.
WHEN the deal fails, I’m heading over to Tmobile.
Hey AT&T – the truth hurts doesn’t it?