Wednesday, August 31, 2011

...AT&T

The U.S. government decided to block the $39 billion merger(purchase) between of T-Mobile by AT&T. They argued that the proposed merger would lead to higher wireless prices, less innovation and fewer choices for consumers. I would have to agree with the government. The Justice Department highlighted T-Mobile’s high speed network and its innovations in technology, noting that it was the first to use Google’s Android operating system and BlackBerry wireless e-mail, among other things AT&T is willing to fight for this deal though. AT&T said it will ask for an expedited court hearing so that the enormous benefits of this merger can be fully reviewed. AT&T said if the deal goes through they will bring thousands of jobs back to America and invest billions in technology and infrastructure. Many tech companies want this deal to go through, but I do not. I have always had T-Mobile as my cell carrier and I would like to keep it that way, though T-Mobile said they are not going to compete in America anymore even if the deal falls through because they have been trying to leave the American market for years. AT&T has one powerful incentive to try to salvage the deal. Under the terms of the agreement that AT&T signed with Deutsche Telekom, AT&T would pay a breakup fee of $3 billion in cash, as well as a roaming agreement and spectrum rights — an estimated total value of $6 billion — if the acquisition did not go through for regulatory reasons. I do not see how this deal will be good for the consumer in the long run. AT&T has expensive plans and they do not offer unlimited plans like T-Mobile. Verizon is even more expensive and Sprint is a sitting duck. Speaking of Sprint... There were talks that Sprint could come in a snatch up T-Mobile, a move that many investors believe would be approved by the government, and I think that would create a powerful, still not as powerful as the other 2 carriers, 3rd carrier. I also heard that Sprint, T-mobile and a lesser carrier such as metro PCS could combine to create a "super carrier". I like anything over AT&T buying them. I am giving the Justice Department a Digit Up for granting me a few more months...years with my favorite cell carrier.



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