My question about this is the fact that T-Mobile Germany wants to sell its American company.
T-Mobile as a company is not doing well and if they simply go out of business, how is that any better for the consumer?
I've asked the same question but the hate for AT&T on this site overwhelms logical thought many times. T-Mobile USA is going out of business one way or the other. This suit is being brought so the US Gov can get a piece of the action or force concessions for the "good of the public" a.k.a. big donors.
I'm guessing this is primarily a political move, as the timing seems unusual. I don't think that the courts will actually block the merger, though they may force AT&T to make additional concessions (e.g. give spectrum to Sprint or US Cellular, refrain from entering into exclusive phone deals for a period of time).
Note that the DOJ is under pressure because of the whole Fast and Furious debacle, and the President has also had a rough month politically and is starting up a re-election campaign. The deal has been on since March, so it seems odd that it would take so long to come up with an objection. I'm not arguing the merits, just pointing out what I think the motives are.
Ok let me give you a bit of a reality check, because you are all living in dream land.
You guys have already been "captured" by the mobile operators in the US, so you don't seem to be able to think out of the box.
I came to the US in April, with a GSM iPhone. I am leaving in 2 month. It made no sense for me to get a 2 year contract, so what do I do?
I want Data, and Voice. I want Unlimited Data, too, not just 2gb which I will finish in 2 weeks, then start paying ridiculous prices for over usage.
Sprint and Verizon are CDMA, leaving me with AT&T and T-Mobile. However, AT&T will NOT give you Data on a prepaid SIM Card, so my only option is T-Mobile, which charges me $70/month! EXCEPT: the iPhone 4 doesn't do 3G on T-Mobile because their 3G Network runs on the 1700Mhz band, leaving me stuck on Edge!
So yah, maybe when you're in a contract (which is where they want you), you are given the illusion that you are paying little per month. But in the grand scheme of things, this is working for AT&T, Sprint, and Verizon. Even for T-Mobile, and even for Boost (which runs on the Sprint network).
But for people like me who do NOT want a contract, or for tourists who come here for 1 month or so, we're screwed, and have to pay ridiculously high prices, for pretty crap services.
And aren't people complaining about AT&T's dropped calls? What I'm hearing is that Verizon has the most stable network, with the least dropped calls. How does AT&T prevent all customers from migrating to Verizon?... think about it. It's all an elaborate scheme. And Verizon are selling a CDMA iPhone - Why doesn't Sprint get it at the same time? Shouldn't Sprint WANT to sell an iPhone? What powers are working behind the scenes to produce this kind of anti-competitive behavior?
They also are at a great disadvantage when it comes to buying US wireless spectrum, since they are fully owned by Deutsche Telekom (a German company), which is of course appropriate (US based companies and government should own the majority of something so valuable, not a foreign interest) - which is why you see them running their 3G/4G on such an odd frequency (1700Mhz), and why, along with not having the cash to compete with US giants, they did not have a strong showing in the spectrum auction where Verizon and AT&T bought a majority of their 700Mhz spectrum for their LTE networks.
I think the story that is getting overlooked here is that T-Mobile recognizes that the path they are on is not sustainable, and they want a way out. They after all agreed, and have been staunch defenders of the sale. Preventing this merger in no way guarantees that T-Mobile will stay around as a competitor for years to come.
Now how much AT&T is overstating their need for the spectrum is another story all together.
on the one hand I'd celebrate but this doesn't happen nearly enough and where the hell was the government when verizon made a similar acquisition not that long ago? Now a days Verizon has the true monopoly in terms of coverage and their prices show it... building out to compete with them will take forever so you have to grow through acquisitions to compete just like verizon did. I agree that we need to limit these giants but we need to limit all of them... ideally I'd love to be able purchase some temporary service for when I might be out in the boonies from the likes of verizon and then go with whatever company I want when Im back around civilization... the 2 year prison sentences (contracts) are becoming a real drag
And even if Deutsche Telekom did go bust, someone could come in and buy their infrastructure.
Like ATT is trying to do with T-Mobile USA?
So what you are saying is all ATT has to do is wait?!
Besides, I thought Deutsche Telekom was selling off their non profitable American division as a means of severing a hemorrhaging money losing appendage (operation).
You don't have to sign a contract. The point of the contract is to buy a new phone for a cheaper price. You have the option to pay full price with no contract.
Over all you've only complained about what you don't like about the US. You did not at all describe what so better about Europe.
The two are so very different situations it can be difficult to compare.
Quote:
Originally Posted by Skaag
Ok let me give you a bit of a reality check, because you are all living in dream land.
I agree...Deutsche Telekom is trying to get out of the US market because they are not making money. So if they cannot sell and continue to lose market share then they will eventually pull out of the US market or sell to someone.....
But in the meantime a sale to AT&T would mean a larger market for Apple and the iPhone.
This would be good for Apple IMHO..... and give the current T-Mobile customers services from AT&T. Becuase if Deutsche Telekom pulls out of the US market where will T-Mobile customer go? Options are Verizon Sprint and AT&T.....
I wish this suit never ends. IE they just keep arguing while T-Mobile keeps launching new products, keeping low products and making mocking ads about ATT and iPhone. Plus their lady is hot!
Before people cry for poor 'ol Deutsche Telekom, remember that AT&T is on the hook to pay them $3 Billion if the deal fall through. If your heart is still bleeding for Deutsche Telekom, let them have a fire sale and hand over T-Mobile to Sprint.
But for people like me who do NOT want a contract, or for tourists who come here for 1 month or so, we're screwed, and have to pay ridiculously high prices, for pretty crap services.
And aren't people complaining about AT&T's dropped calls? What I'm hearing is that Verizon has the most stable network, with the least dropped calls. How does AT&T prevent all customers from migrating to Verizon?... think about it. It's all an elaborate scheme. And Verizon are selling a CDMA iPhone - Why doesn't Sprint get it at the same time? Shouldn't Sprint WANT to sell an iPhone? What powers are working behind the scenes to produce this kind of anti-competitive behavior?
I wish this suit never ends. IE they just keep arguing while T-Mobile keeps launching new products, keeping low products and making mocking ads about ATT and iPhone. Plus their lady is hot!
What are you all smoking? Pretty much ALL mobile operators in the US are together in a cartel.
This is why in the US of A, we have the worst packages of any other country.
Even a small country like The Netherlands, with a faction of the US population, offers a 10 Euro per week unlimited internet package, and that's for prepaid customers!! I mean COME ON?!
The American people are being "played", and this move by the US Government is almost meaningless, whether or not it actually goes through.
Exactly.
I didn't want to be the one to say it but I'm glad someone did. The time for the Government to step in is not when the market consists of two identical giants with matching (ridiculously high) prices and one pipsqueak without a hope in hell of ever being one of the big guys.
We have a similar situation in Canada. There are five big players who all collude on high prices and plans. All the plans are essentially the same and the costs are essentially the same. Then there are five or so "little fish" who offer decent prices and alternatives, but they are all locked out by the big five because they have different frequencies and can't operate on the big five's towers even if they decided to let them. So you can go for cheap, but only if you want to give up any kind of cool new phone like the iPhone and anything approaching decent coverage. If you go for any of the big five, you are basically getting the same bad deal everywhere.
The US situation is not a healthy market and while what the government has done is admirable, it's really far too little and far too late. I bet they even lose their case or are somehow "convinced" down the road that AT&T is right.
Certainly this is nothing to jump for joy over.
The real answer is having the government provide and control the infrastructure, and have the cell providers provide the service in an open market with competition. This will never fly in places like the USA of course for ideological reasons (evil socialism etc.).
Yeah, I never understood how AT&T could claim the the elimination of a competitor would strengthen or at least not reduce competition. I guess logic isn't their forte.
What are you all smoking? Pretty much ALL mobile operators in the US are together in a cartel.
This is why in the US of A, we have the worst packages of any other country.
Even a small country like The Netherlands, with a faction of the US population, offers a 10 Euro per week unlimited internet package, and that's for prepaid customers!! I mean COME ON?!
That's because they're below sea level... don't need so many towers.
Comments
My question about this is the fact that T-Mobile Germany wants to sell its American company.
T-Mobile as a company is not doing well and if they simply go out of business, how is that any better for the consumer?
I've asked the same question but the hate for AT&T on this site overwhelms logical thought many times. T-Mobile USA is going out of business one way or the other. This suit is being brought so the US Gov can get a piece of the action or force concessions for the "good of the public" a.k.a. big donors.
Note that the DOJ is under pressure because of the whole Fast and Furious debacle, and the President has also had a rough month politically and is starting up a re-election campaign. The deal has been on since March, so it seems odd that it would take so long to come up with an objection. I'm not arguing the merits, just pointing out what I think the motives are.
You guys have already been "captured" by the mobile operators in the US, so you don't seem to be able to think out of the box.
I came to the US in April, with a GSM iPhone. I am leaving in 2 month. It made no sense for me to get a 2 year contract, so what do I do?
I want Data, and Voice. I want Unlimited Data, too, not just 2gb which I will finish in 2 weeks, then start paying ridiculous prices for over usage.
Sprint and Verizon are CDMA, leaving me with AT&T and T-Mobile. However, AT&T will NOT give you Data on a prepaid SIM Card, so my only option is T-Mobile, which charges me $70/month! EXCEPT: the iPhone 4 doesn't do 3G on T-Mobile because their 3G Network runs on the 1700Mhz band, leaving me stuck on Edge!
So yah, maybe when you're in a contract (which is where they want you), you are given the illusion that you are paying little per month. But in the grand scheme of things, this is working for AT&T, Sprint, and Verizon. Even for T-Mobile, and even for Boost (which runs on the Sprint network).
But for people like me who do NOT want a contract, or for tourists who come here for 1 month or so, we're screwed, and have to pay ridiculously high prices, for pretty crap services.
And aren't people complaining about AT&T's dropped calls? What I'm hearing is that Verizon has the most stable network, with the least dropped calls. How does AT&T prevent all customers from migrating to Verizon?... think about it. It's all an elaborate scheme. And Verizon are selling a CDMA iPhone - Why doesn't Sprint get it at the same time? Shouldn't Sprint WANT to sell an iPhone? What powers are working behind the scenes to produce this kind of anti-competitive behavior?
They also are at a great disadvantage when it comes to buying US wireless spectrum, since they are fully owned by Deutsche Telekom (a German company), which is of course appropriate (US based companies and government should own the majority of something so valuable, not a foreign interest) - which is why you see them running their 3G/4G on such an odd frequency (1700Mhz), and why, along with not having the cash to compete with US giants, they did not have a strong showing in the spectrum auction where Verizon and AT&T bought a majority of their 700Mhz spectrum for their LTE networks.
I think the story that is getting overlooked here is that T-Mobile recognizes that the path they are on is not sustainable, and they want a way out. They after all agreed, and have been staunch defenders of the sale. Preventing this merger in no way guarantees that T-Mobile will stay around as a competitor for years to come.
Now how much AT&T is overstating their need for the spectrum is another story all together.
Excellent points.
And even if Deutsche Telekom did go bust, someone could come in and buy their infrastructure.
Like ATT is trying to do with T-Mobile USA?
So what you are saying is all ATT has to do is wait?!
Besides, I thought Deutsche Telekom was selling off their non profitable American division as a means of severing a hemorrhaging money losing appendage (operation).
/
/
/
Yup - This decision must have cost somebody a big wad of cash.
That's for sure. AT&T are already running expensive ads in prime time about the acquisition!
Over all you've only complained about what you don't like about the US. You did not at all describe what so better about Europe.
The two are so very different situations it can be difficult to compare.
Ok let me give you a bit of a reality check, because you are all living in dream land.
I don't think you understand that Deutsche Telekom itself offered to sell T-Mobile to AT&T. Because T-Mobile is an ailing company.
Deutsche Telekom Quarterly Profit Declines on T-Mobile USA
What then happens to T-Mobile's customers?
I agree...Deutsche Telekom is trying to get out of the US market because they are not making money. So if they cannot sell and continue to lose market share then they will eventually pull out of the US market or sell to someone.....
But in the meantime a sale to AT&T would mean a larger market for Apple and the iPhone.
This would be good for Apple IMHO..... and give the current T-Mobile customers services from AT&T. Becuase if Deutsche Telekom pulls out of the US market where will T-Mobile customer go? Options are Verizon Sprint and AT&T.....
But for people like me who do NOT want a contract, or for tourists who come here for 1 month or so, we're screwed, and have to pay ridiculously high prices, for pretty crap services.
And aren't people complaining about AT&T's dropped calls? What I'm hearing is that Verizon has the most stable network, with the least dropped calls. How does AT&T prevent all customers from migrating to Verizon?... think about it. It's all an elaborate scheme. And Verizon are selling a CDMA iPhone - Why doesn't Sprint get it at the same time? Shouldn't Sprint WANT to sell an iPhone? What powers are working behind the scenes to produce this kind of anti-competitive behavior?
Welcome to America bro.
I wish this suit never ends. IE they just keep arguing while T-Mobile keeps launching new products, keeping low products and making mocking ads about ATT and iPhone. Plus their lady is hot!
That my friend is a true statement!
What are you all smoking? Pretty much ALL mobile operators in the US are together in a cartel.
This is why in the US of A, we have the worst packages of any other country.
Even a small country like The Netherlands, with a faction of the US population, offers a 10 Euro per week unlimited internet package, and that's for prepaid customers!! I mean COME ON?!
The American people are being "played", and this move by the US Government is almost meaningless, whether or not it actually goes through.
Exactly.
I didn't want to be the one to say it but I'm glad someone did. The time for the Government to step in is not when the market consists of two identical giants with matching (ridiculously high) prices and one pipsqueak without a hope in hell of ever being one of the big guys.
We have a similar situation in Canada. There are five big players who all collude on high prices and plans. All the plans are essentially the same and the costs are essentially the same. Then there are five or so "little fish" who offer decent prices and alternatives, but they are all locked out by the big five because they have different frequencies and can't operate on the big five's towers even if they decided to let them. So you can go for cheap, but only if you want to give up any kind of cool new phone like the iPhone and anything approaching decent coverage. If you go for any of the big five, you are basically getting the same bad deal everywhere.
The US situation is not a healthy market and while what the government has done is admirable, it's really far too little and far too late. I bet they even lose their case or are somehow "convinced" down the road that AT&T is right.
Certainly this is nothing to jump for joy over.
The real answer is having the government provide and control the infrastructure, and have the cell providers provide the service in an open market with competition. This will never fly in places like the USA of course for ideological reasons (evil socialism etc.).
Plus their lady is hot!
100% agree.
Yeah, I never understood how AT&T could claim the the elimination of a competitor would strengthen or at least not reduce competition. I guess logic isn't their forte.
"People lie."
- House, M.D.
its the Govnt NOT releasing enough spectrum for telecos to use
ATT wants T-mobile's spectrum
how can we have competition and improved customer support with out MORE SPECTRUM
this just allows the established few to keep prices high
gee its all data, why pay for voice, data, sms separately (ok i know the answer) and these huge etf's
we need more competition (well some solution with sms with imessage, chaton, facebook sms) but really.....
That's for sure. AT&T are already running expensive ads in prime time about the acquisition!
Yes. Instead of fixing their overloaded infrastructure. Grrrr....
What are you all smoking? Pretty much ALL mobile operators in the US are together in a cartel.
This is why in the US of A, we have the worst packages of any other country.
Even a small country like The Netherlands, with a faction of the US population, offers a 10 Euro per week unlimited internet package, and that's for prepaid customers!! I mean COME ON?!
That's because they're below sea level... don't need so many towers.
Oh, and because they're socialists.