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AT&T/T-Mobile deal

AT&T/T-Mobile deal

AT&T would get the assets it was looking for in the first place, T-Mobile would only have to handle marketing and customer support, and Deutsche Telekom would get the huge cash infusion it wants.The deals over.Unless AT&T can get the right officials properly lobbied (aka bribed), this deal is as dead as the King of Pop.AT&T = Another Texas Takeover.. .They drop employees faster after mergers, then they drop calls. So T-Mobile employees keep the resumes handy and be ready to train those off shore resources.

AT&T also claimed that T-Mobile customers would be forever protected from price increases, because AT&T would agree to honor their current contracts for an unlimited time.The Commission also noted that AT&T should view the report as a kind of roadmap for what sort of deal could attain approval if AT&T seeks a different version of the merger in the future.Though AT&T is still pursuing the merger, the FCC’s harsh statements suggest that approval won’t be easy.

Anytime the number of top industry leaders is reduced from 4 to 3, 2 to 1, 3 to 2 what have you (in this case from 4 to 3), competition is reduced and prices go up. The only downward pricing pressure in this industry is the yet unsaturated market, and the industries failure to actually deliver the advertised and sold throughput.Worked for AT&T many many many years, back to the days of punched card inputs to IBM .. Just this year we trained off shore resources and we were shown the door. Randal and the boys will do anything to win.

The FCC’s report was the preliminary product of a detailed analysis the agency conducted while deciding whether or not to approve AT&T’s proposed $39 billion T-Mobile takeover. The FCC was moving toward opposing the deal, and in response AT&T withdrew its application. It will re-seek the FCC’s support if it clears other regulatory obstacles.The FCC called T-Mobile a “disruptive force” in the mobile marketplace that keeps competitors’ prices in check.

AT&T believes the FCC may have already made up its mind to oppose the merger before analyzing the facts, he suggested. Eliminating T-Mobile’s competitive price points would also give Verizon and Sprint incentive to raise prices, causing pain in the wallet for the majority of cell phone customers. AT&T set aside $4 billion last week to cover the break-up fee it will owe Deutsche Telekom, T-Mobile’s parent company, should the deal not go through.

Tags: AT&T, deal, FCC, mergers, T-mobile