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Leaked AT&T letter puts damper on potential T-Mobile acquisition

by andy2373    Aug 12, 2011, 10:24 PM


AT&T has been telling regulators that the deal will lead to job gains and network investment, but the new letter, sent to potential investors, shows that is blatantly untrue.

While the carrier has been telling regulators the acquisition will increase network investment by $8 billion, behind the scenes the company is saying the deal will actually help them reduce investment by $10 billion over the next six years.

T-Mobile said last year it planned to spend $3 billion a year in new infrastructure investments.

Additionally, AT&T has been telling regulators that they need T-Mobile in order to increase LTE network coverage, but the letter seems to prove that is also a lie. The letter states that it would cost just $3.8 billion to increase LTE coverage from its current 80 percent to 97 percent (the other 3 percent will likely never get 4G service). Clearly they do not "need" T-Mobile, at a $39 billion premium, when the costs of expanding is just under $4 billion.

There have also been unsubstantiated rumors from T-Mobile managers that there will be thousands of layoffs if the merger were to move forward, which makes perfect sense given the redundancies that will occur.

http://www.afterdawn.com/news/article.cfm/2011/08/13 ... »

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