AT&T to purchase T-Mobile for $39 Billion

[TheZookie007]

Fuck.

[Trace]

Wasn't there a court case that said that they couldn't do stuff like that?

[TheZookie007]

Back in the 80s, AT&T (the Bell System) was a telephone monopoly. They broke it up into the so-called seven "Baby Bells", but over the intervening decades, they slowly have reformed, via mergers and acquisitions. If the FCC allows this merger to go through, we will practically be back at square one.

NetworkWorld: "AT&T-T-Mobile merger widely panned"
Consumer groups, rivals and regulators all find something to hate in proposed deal

Wags on Twitter have been having a field day with this:

@GeorgeTakei: AT&T is buying T-Mobile. In related news, Russia wants Eastern Europe back. #TheresAMapForThat

@JimmyFallon: AT&T decided to buy T-Mobile for $39 billion. It was a tough call for AT&T, but then again, EVERY call is a tough call for AT&T. #FallonMono

@bobstephenson: Quote of the day: So AT&T and T-Mobile are getting married. You're all invited. But there will be no reception afterwards.

@rsa: AT&T buys T-Mobile, merges as T&A Mobile.

[pedonbio]

As a T-Mobile customer, I consider myself fucked, and not in a nice way.

[TheZookie007]

Tell me about it!

But here comes the backlash:

The Economist: "Not so fast, Ma Bell"
AT&T’s takeover of T-Mobile USA would damage mobile-phone choice. It should be stopped


NetworkWorld: "AT&T-T-Mobile merger widely panned"
Consumer groups, rivals and regulators all find something to hate in proposed deal

NetworkWorld: "AT&T's $39B T-Mobile buyout raises regulatory, competitive and customer service questions"

NetworkWorld: "Sprint to fight AT&T's buyout of T-Mobile"

Sprint Nextel has vowed to fight AT&T's proposed US$39 billion acquisition of T-Mobile USA, calling the deal a bid to create a new telecommunications duopoly.

"Sprint urges the United States government to block this anti-competitive acquisition. This transaction will harm consumers and harm competition at a time when this country can least afford it," said Vonya McCann, senior vice president of government affairs, in a written statement on Monday.

The company said AT&T's proposed deal would roll back decades of opening up the U.S. telecommunications industry to competition following the breakup of the AT&T monopoly in the 1980s. "On behalf of our customers, our industry and our country, Sprint will fight this attempt by AT&T to undo the progress of the past 25 years and create a new Ma Bell duopoly," McCann's statement said....

[Tsunami2k]

As a T-Mobile customer, I consider myself fucked, and not in a nice way.

Well you're plan won't change for atleast a year. I don't mind the buyout really

[Palomine]

Well you're plan won't change for atleast a year. I don't mind the buyout really

If the sale goes through and AT&T does buy T-Mobile, you can rest assured that when current T-Mobile contracts expire, those customers will not be allowed to renew them under their existing/prior T-Mobile terms and rates, but instead only under AT&T terms and rates. This is exactly what happened when AT&T bought Cingular and it's what always happens. I'm not a customer of either company, but I hope that the sale doesn't go through as a matter of principle: this sort of consolidation results in less competition which results in less choice and higher prices for customers. That's the way it's always been.

Since T-Mobile is/was one of the lower-cost carriers, it stands to reason that some percentage of T-Mobile customers chose T-Mobile due to their lower prices... all those folks are going to be mighty disappointed and unpleasantly surprised when it's time for them to re-up after the sale is finalized... whether that's a day after the sale or 364 days after.

[TheZookie007]

If the sale goes through and AT&T does buy T-Mobile, you can rest assured that when current T-Mobile contracts expire, those customers will not be allowed to renew them under their existing/prior T-Mobile terms and rates, but instead only under AT&T terms and rates. This is exactly what happened when AT&T bought Cingular and it's what always happens. I'm not a customer of either company, but I hope that the sale doesn't go through as a matter of principle: this sort of consolidation results in less competition which results in less choice and higher prices for customers. That's the way it's always been.

Since T-Mobile is/was one of the lower-cost carriers, it stands to reason that some percentage of T-Mobile customers chose T-Mobile due to their lower prices... all those folks are going to be mighty disappointed and unpleasantly surprised when it's time for them to re-up after the sale is finalized... whether that's a day after the sale or 364 days after.

Exactly.

There's still time for us to do something; the FCC is asking for feedback about this proposed merger from the public, and the recent Senate hearings on the subject did not go well for AT&T and T-Mobile reps, who were basically handed their asses by other members of the panel, and from a number of telecom-savvy Senators, e.g. Sen. Al Franken.

[J25]

There's still time for us to do something; the FCC is asking for feedback about this proposed merger from the public....

Link to file comments or complaints:
http://fjallfoss.fcc.gov/ecfs/upload/display?z=bnc1y

Case 11-65 from:
http://fjallfoss.fcc.gov/ecfs/hotdocket/list

[TheZookie007]

I was going to put those links up but I'd forgotten to....thanks J25.

[TheZookie007]

Here we go...

"T-Mobile Puts the Asterisk in Unlimited* Data Plans"

[TheZookie007]

It's about bloody time.

CIO: "Senator Opposes AT&T's Acquisition of T-Mobile"

[Palomine]

I dislike AT&T so much:

http://www.dslreports.com/shownews/Leaked-ATT-Letter-Demolishes-Case-For-TMobile-Merger-115652

[TheZookie007]

They need to go down, man. This is just such complete bullshit. Google just purchased Motorola Mobility (largely to snag their patent portfolio, which IIRC includes the original cellphone patent); how I wish that they would purchase T-Mobile instead. Could you imagine some solid Motorola tablets like the Xoom running the latest-and-greatest build of Android (with no fluff added by carriers like Verizon), and running on T-Mobile's network? That would be totally full of win for consumers.

[Zorro]

Feds aim to block AT&T's T-Mobile purchase: The fallout
By Larry Dignan | August 31, 2011, 8:23am PDT

Summary: The Feds want to block AT&T’s acquisition of T-Mobile. Here’s a look at the winners and losers.

The Justice Department filed to block AT&T’s planned acquisition of T-Mobile and the news is going to shake up the wireless industry.

AT&T portrayed its acquisition of T-Mobile as a way to boost 4G services, build out its network, alleviate a wireless spectrum crunch and boost jobs. AT&T just Tuesday said it would repatriate 5,000 call center jobs to the U.S.

The Department of Justice, however, is wary of having two companies control 80 percent of the postpaid wireless market and wants more consumer choice. What’s unclear at this juncture is whether the complaint filed by regulators on Wednesday is an opener to prod AT&T to divest assets too close the T-Mobile deal or a nail in the merger coffin. AT&T will have an appeal.


http://www.zdnet.com/blog/btl/feds-aim-to-block-at-ts-t-mobile-purchase-the-fallout/56891?tag=nl.e539

[TheZookie007]

I sincerely hope that the merger is killed once and for all. AT&T is lying through their teeth about so many things. For instance, "we need to buy T-Mobile to increase our 4G coverage". "We need to buy them because we don't have enough spectrum." "We will increase our network coverage in rural areas if we buy T-Mobile." And, worst of all, "We're not in competition with T-Mobile nationally, so our purchasing them will not impact anyone."

Why don't you use that $39 billion to build out your 4G network? Why don't you use that $39 billion to more efficiently use the spectrum that you do have? Why are you imposing idiotic data caps on your smartphone users, when everyone knows that that is what smartphones are used for? Why are you increasing prices and decreasing service? I could go on and on.

I repeat: I sincerely hope that the merger is killed once and for all. The good thing is that if the Feds do kill it, T-Mobile gets like $4-5 billion from AT&T in compensation...which they can use to build out their network and continue providing the good service that they have in the past.

[Malak]

I'm a longtime T-Mobile customer and the thought of a merger with AT&T is downright scary to me. Here's hoping the government does something , but I wont hold my breath.  Corporate power (at least in the united states) is way stronger than it appears to be.

[superspy]

I repeat: I sincerely hope that the merger is killed once and for all. The good thing is that if the Feds do kill it, T-Mobile gets like $4-5 billion from AT&T in compensation...which they can use to build out their network and continue providing the good service that they have in the past.

While I agree in sentiment, the way that the agreement is worded Deutsche Telekom (parent company of T-Mobile) would receive 3 billion dollars, plus certain spectrum allocations and roaming agreements.  Unfortunately, there is no guarantee that the cash will be used within T-Mobile.

[pedonbio]

I'm a longtime T-Mobile customer and the thought of a merger with AT&T is downright scary to me. Here's hoping the government does something , but I wont hold my breath.  Corporate power (at least in the united states) is way stronger than it appears to be.

Well, if anyone asks you if there is a difference between Bush and Obama, you have a clear example. Though AT&T may try to move ahead over DoJ objection, I suspect the deal is dead.

[TheZookie007]

Yet another reason to hope that this merger gets squashed:

"For $500,000! Rick Perry Backs AT&T Merger Plan With T-Mobile"

[TheZookie007]

The backlash continues...

"Seven states join forces with U.S. Justice Department to stop AT&T, T-Mobile merger"

[TheZookie007]

Consumer Reports: "FCC chairman wants hearing on AT&T/T-Mobile merger"

The Consumerist: "AT&T pulls FCC application for T-Mobile merger"

The Consumerist: "FCC to add yet another speed bump to AT&T/T-Mobile deal"


Suck it, AT&T! bwahahahhahahahahahahaha!

[TheZookie007]

Engadget: "AT&T abandons T-Mobile merger plans"

Bwahahahahahahaha!

[Palomine]

So, several months ago AT&T finally reduced pricing on DSL... with the lowest tier of service now starting at $14.95/mo. Whether this pricing change had anything to do with their aborted attempt to acquire T-Mobile or not, I have no idea, but I'd not put anything past them. Of course, this reduced pricing was only for new customers... as usual, if you'd been a loyal customer of theirs for a decade, they'd continue to charge you the older/higher rate until if/when you threatened to close your account, in which case you'd be transferred to the retention department and after another hour of your life was sucked away, you'd eventually be able to secure the new-customer rate too.

All of this is par for the course for AT&T, which is (IMO) one of the very worst-behaved companies I've ever done business with.

Anyway, they've been promoting the $14.95 rate for DSL pretty heavily... probably 2 or 3 commercials an hour if you're just channel surfing. Like so many commercials, the last couple of seconds are filled with fine print disclosing all the 'gotchas' that offset the deals being offered. Only recently have I noticed that the fine print actually specifies a DATA LIMIT for DSL customers... of 150GB/month, beyond which they're charged extra. I'm not complaining about the size of the limit (even with my collector's genome, I don't come anywhere close to it) ...however it seemed worth pointing out, given that I've never seen such a thing before: a landline internet connection having a data limit like a cell phone data plan. I haven't done the math, but if you were an active user of streaming media such as Netflix, Pandora, Amazon Prime and Hulu Plus and/or if you were really jumping onto the 'cloud' bandwagon in earnest, putting/getting all your own data to/from an online server, it'd seem possible to exceed this 150GB limit and start incurring the additional charges.

Yet another reason to despise AT&T, as if decades of bad behavior on their part didn't already provide ample motivation.

[TheZookie007]

You really have to wonder if these guys deliberately want to cripple the one bright spot in the American economy: the Internet. Other countries are running rings around us, when it comes to the speeds available to the home. And data caps on DSL?? I feel like slapping them.