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Another take on why ATT buyout should be blocked.

andy2373

Apr 11, 2011, 3:03 PM

AT&T is terrible at managing their network compared to T-Mobile. And the service and support has only really begun improving late last year. It will take quite a lot of time for AT&T to catch up in terms of overall quality to the levels expected by T-Mobile customers. And AT&T will crush T-Mobile’s open culture after the acquisition is complete, in favor of AT&T’s monopolistic conservative culture.

AT&T also doesn’t really get open networks and open solutions. Their Android devices are locked down, with sideloading blocked. They are the only carrier in the world that does that, by the way. AT&T prefers nickel-and-diming customers instead of making them happy enough to continue staying with AT&T, which is why t
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nextel18

Apr 11, 2011, 4:49 PM
I actually agree with that. I think there are a number of reasons why this merger should not go through. it would be a very tough task for the regulators whether to approve with much conditions or deny it all together.

my opinion?

denied.
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cellphoneguy

Apr 11, 2011, 5:16 PM
Denied!
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nextel18

Apr 11, 2011, 5:40 PM
it makes sense from an operational standpoint but not from a regulatory and financial standpoint.
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Jayshmay

Apr 11, 2011, 6:52 PM
If it does go through, likely with a whole lot of divestitures, it will be very, very interesting over the next 12-24 months how many Tmo customers leave ATT for Sprint, cause Sprint would be the next best bargain in the industry, and Tmo customers are bargain hunters.
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nextel18

Apr 11, 2011, 6:55 PM
i saw how much AT&T and T-mobile USA overlap; it is quite a lot. i read the entire document that the AT&T/Tmobile USA sent to the FCC. (talk about having no life) anyway, there are some pros and cons but i think overall, it would be bad for competition. divestitures would be 100% needed. AT&T has talked about moving more than a half of tmobile usa's subscriber, which tells me that they dont need their subscribers. who are those people going to go to? where are the spectrum going to go to? we might create another alltel.
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Jayshmay

Apr 11, 2011, 7:00 PM
It's pretty clear that ATT did this for the spectrum, not the customers.

I really do think that this will benefit Sprint. Dan Hesse doesn't seem to think so. But heck, these people are with Tmo because they don't want to pay the prices of ATT/Vzn, so the alternative would be Sprint.

And with reguards to creating another Alltel. Wouldn't that require some sort of venture capitalist investment firm?
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nextel18

Apr 11, 2011, 7:08 PM
well of course they did it for the spectrum but when you pay a valuation of that price it is mostly on the subscribers. that is usually the metrics for purchasing a company (at least it was in the wireless industry).

i am not sure if it will benefit sprint. i dont see how yet. (i didnt analyze that part yet so my comment is premature)

i didnt mean to create one by making a whole VC firm, but i meant it could create one. for instance, there might be some carriers like metropcs that could gain these assets and then can start to become a powerhouse. (again sorta like an alltel)
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Jayshmay

Apr 11, 2011, 7:11 PM
Ah! Good pooint about the MetroPCS thing. Well, congress has a date scheduled to discuss ATTs buyout of Tmo, it's May 11, so that oughta be interesting.
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nextel18

Apr 11, 2011, 7:12 PM
yea 🙂

yes i will be watching that. i am always excited watching those sorta things. i watched the SIRI/XMSR merger.
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Jayshmay

Apr 11, 2011, 7:14 PM
Yeah, that was interesting because there were only 2 players in that industry.

I wonder if the Chairman of the FCC will be in attendance for the hearing, they should listen to his input.
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nextel18

Apr 11, 2011, 7:18 PM
i dont recall the mandate that the FCC and the federal government made to them but it was strict.

it will be VERY interesting.
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HzD incredible

Apr 11, 2011, 9:54 PM
I'm not sure how a cellphone carrier, that all provide basicly the same services can have different cultures. The goverment should have no say in this but as usual they control everything. att if they want should be able to buy t-mobile, yes there would be 1 less carrier but people will still have plenty of choices for a carrier and still the same phone selection. bye bye t-mobile hello att 4g.
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