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AT&T CEO: Blocking T-Mobile Deal Will Lead to Higher Prices

Article Comments  85  

Dec 9, 2011, 8:53 AM   by Eric M. Zeman   @phonescooper
updated Dec 9, 2011, 9:06 AM

AT&T CEO Randall Stephenson accused congress of having "an ill-formed regulatory policy when it comes to wireless carriers" at an event held in New York on Thursday. Speaking during an interview with Bloomberg, Stephenson also said, "Regulators can't keep up with the changes in the industry." He said that if the government successfully blocks the deal, it will only lead to higher prices for consumers, because AT&T won't have the capacity needed to handle data traffic volumes as they grow. The Department of Justice has sued AT&T with the intent of blocking the acquisition for antitrust reasons. The Federal Communications Commission recently released a report condemning the acquisition, saying it would lead to less innovation, higher prices, and massive job losses. AT&T maintains the opposite.

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Comments

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This forum is closed.

justfinethanku

Dec 9, 2011, 11:22 AM

Randall Stephenson is right, and that is why Sprint is running scared.

Creating efficiencies in ANY market benefits the consumer. Prices go down, quality rises. AT&T may become the only GSM network in the nation, but that means nothing.

Prices for AT&T will go down if they are allowed to buy T-Mobile.

Why do you think Sprint is so terrified of this?
Monopolies never cause prices to go down. Didn't we all learn that from the game "Monopoly"? When I get Boardwalk and Park Place boy am I in the money!
...
You're refering to what SHOULD happen with the merger... not what WILL happen

There's a big difference. Corporations aren't in it for "customers" per say.... they're in it for the $$$
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justfinethanku said:
Creating efficiencies in ANY market benefits the consumer. Prices go down, quality rises. AT&T may become the only GSM network in the nation, but that means nothing.

Prices for AT&T will go down if they are
...
(continues)
...
I agree with you, the AT&T and Verizon duopoly would only be good for consumers. Prices will go down, everyone will get better reception, and we will have more jobs.

Even better would be if we could just eliminate all the carriers and make one comp...
(continues)
...
----" Creating efficiencies in ANY market benefits the consumer. Prices go down, quality rises. AT&T may become the only GSM network in the nation, but that means nothing.

Prices for AT&T will go down if they are allowed to buy T-Mobile.

Why do ...
(continues)
...
justfinethanku said:
Creating efficiencies in ANY market benefits the consumer.



This is certainly not true. Very few practices are ALWAYS good for the consumer.

One such practice is the entrance of new competi...
(continues)
I agree with you
Guess you get to keep your job after all. Very Happy
TDBearCT

Dec 9, 2011, 11:08 AM

He's right...

... blocking the merger will cause AT&T to raise their prices, since their network cannot handle the amount of traffic on it (both now and in the future).

If the merger is permitted, the combined company most certainly will raise prices since they will be the only nationwide GSM carrier in the US.

For AT&T customers, it's a lose-lose situation.
You really buy their lies don't you? AT&T is sitting on more spectrum than any other carrier. They have plenty of spectrum to launch LTE over 90% of their footprint! This is a ploy to remove a competitor and they can't hide it.
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WRONG!!!
Please look at what happened in Canada.
No competition = much higher price.
Do you want to pay $1 per byte after the buyout (please don't use merger again, AT&T WANTED TO BUY T-MOBILE!!!!!)?
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ibnturab

Dec 9, 2011, 3:29 PM

Wake up Folks, Its the Death Star we're talking about

Seriously, I can't believe some people want this to go through. Can you imagine a bigger AT&T ? There is a reason why AT&T is called the Death Star.
True, AT&T needs to be split up again. This is ridiculous. They cant just buy a major competitor and justify it with temp jobs and bogus claim of price drops, etc. What a joke.
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Next thing on AT&Ts list is to buy out comcast for TV service
Wait...when did AT&T become a Star Wars Space Station?

Where was I for all this?
vedelorme

Dec 10, 2011, 2:21 PM

higher prices for at&t that is... not t-mobile....

higher prices for at&t that is... not t-mobile....
Laughing
CellStudent

Dec 10, 2011, 11:33 AM

How to read an AT&T executive statement:

It's a simple process, really. Do the following:

1) Read through the document and isolate all mentions of the word "consumer."

2) Replace all occurrences of the term "consumer" with "AT&T customer."

3) Reread statement.



These guys talk about the wireless marketplace like AT&T is the only firm that matters! Consolidation of control channels in the cellular system is such a minuscule improvement in overall efficiency that it isn't worth even considering from an antitrust perspective.

Is putting nearly 1/3 of the entire wireless marketplace under the control of a single firm really worth a 1%-3% gain in spectrum usage efficiency?

Only if you're the firm standing to gain huge marketplace advantages from doing so!
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(continues)
cutboy1985

Dec 9, 2011, 1:54 PM

Why AT&T wants T-Mobile!

Only reason why I see this is because they will have the advantage when it comes down to the international carriers. Most companies operate within and outside of the U.S. This gives them the advantage within the states because they will not have their customers worried too much bout buying a certain phone. LTE is not worldwide yet so GSM gives them the advantage. Plus more resellers woo come as well. Also cannot forget the spectrum if at anytime it comes down to GSM ever retiring which probably wouldn't happen at all for years to comes. But more likely GSM will dye down after about 15-20 years from now which the spectrum can be used for other use. Mostly AT&T will be sitting on a gold mine for years to come. X
Your point is well made but, I would have to disagree on the time frame. I think it would be a lot sooner than you think. More like 3-5 years. The rest of this year and the next year and a half, we will see most, if not all carriers using LTE nationwi...
(continues)
muchdrama

Dec 9, 2011, 2:19 PM

Right--

--because competition always leads to higher prices.
andy2373

Dec 9, 2011, 1:04 PM

REALLY!?!

Just give it a rest ATT!!
You've just been voted worst major carrier again!! Work on that, and no one believes acquiring TMO would help you anymore!
Captain Ahash

Dec 9, 2011, 12:45 PM

Blackmail?

Smooth.
more like a threat
mycool

Dec 9, 2011, 12:12 PM

Prices will go up...

If number portability is forced.

Oh wait, I mean if the merger fails. Twisted Evil
terryjohnson16

Dec 9, 2011, 9:53 AM

All Lies

Who does he think he is? He knows that if they are the only sole GSM provider in the USA, they will have more power, and would be able to persuade the OEMs to only sell AT&T devices in the USA.

Plus, people won't have a choice when it comes to roaming in the country, or when they go overseas.
I worked for AT&T and I know he and most of AT&T are nothing but B.S. They will say anything to get what they want. He and Ralph are nothing but &&*%$%^#@$%#$%^.
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