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AT&T has 'steep climb' ahead to get FCC approval of T-Mobile purchase - Page 2

post #41 of 44
Quote:
Originally Posted by Pennywse View Post

It's obvious we're heading to a Verizon/AT&T mobile country. As long as their are two companies then you have competition.

In the beginning (or near it) the FCC restricted cell phone operators to 2 carriers in most markets to ensure competition but also foster growth. It wasn't long before their own studies indicated that no real competition existed in a given market until at least 3 carriers were present.

This deal has the potential to effectively put Sprint out of business, leaving only Verizon and AT&T.

I hope the FCC won't forget that lesson they learned.

Just look at current pricing for iPhone or iPad service from AT&T and Verizon. The minor differences in their offerings amount to variations on a theme, not competition.

If the iPhone were to also come to Sprint and/or T-Mobile, I would expect to see more competitive pressure on all carriers in their service offerings.

Also, the FCC originally required all 1G cell phones to work on every carrier's network—to ensure portability of service between carriers. That is a requirement they were talked into dropping when 2G was rolled out, creating the current situation of AT&T's phones not working on Verizon's network (and vice versa). There is hope that '4G' LTE might end up fixing the portability problem created when the FCC dropped that requirement. Even Sprint is now mulling a '4G' LTE option in addition to its current '4G' WiMax offerings.

Personally, I'd rather the merger not get approved. I see it as a short-term fix to AT&T's current perceived problems, with significant long-term negative consequences in tow (i.e. the marginalization/elimination of Sprint).
post #42 of 44
Quote:
Originally Posted by Roos24 View Post

I still don't believe this. Germans take (or buy, if they have to), but never sell without an ulterior motive; it's not in their DNA. If the FCC allows it, I predict that AT&T will be German-owned within five years. With their strong Euro it will be very easy for them to increase their stake in AT&T.

Three things make T-Mo attractive to sell:
-Incompatible 3G frequencies may be more valuable for another function than mobile data.
-Significant 5-year marketing push has only allowed for survival, with a large percentage of their users focused on low-cost.
-Solid purchase price.

Getting a good stake in AT&T is a nice benefit, and eliminates much of the drain on their operations. I would like to see the WiFi and 1700MHz bands removed from the purchase, and sold off to a viable competitor for something else.

Did T-Mo give up on UMA?
post #43 of 44
I'm not surprised to see Sen Klobuchar making a particular point of this; her home state of Minnesota stands to be particularly affected by the merger. Thanks to the huge 1900MHz network Aerial Communications built in MN in the 1990s prior to its merger with VoiceStream, T-Mobile's 1900 GSM network has broad coverage and goes deeply into rural areas in the state as well as blanketing metro regions. It's far more extensive in MN than ATT.

I only hope that politicians from states with less of a TMobile presence will nonetheless still take an interest. If this merger goes through as it is, we'll have two wireless networks in the US because Sprint won't have a chance as an independent and the likes of US Cellular and MetroPCS will be shopping for bids from Verizon. And that will mean big rate increases without much of a gain in service in return. We're already more expensive than we should be. This would be a giant step in the wrong direction.

If any further wireless consolidation is allowed, there ought to be a comprehensive plan that addresses the smaller firms as well as the national players.
post #44 of 44
Quote:
Originally Posted by Roos24 View Post

I still don't believe this. Germans take (or buy, if they have to), but never sell without an ulterior motive; it's not in their DNA. If the FCC allows it, I predict that AT&T will be German-owned within five years. With their strong Euro it will be very easy for them to increase their stake in AT&T.

the deal of $ 39 billion is $ 24 billion cash and the rest is in ATT stock making the germans have over 50% of the company.
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