Tag Archives: T-Mobile merger
AT&T willing to make concessions to save T-Mobile merger, sources say
US government files to block proposed AT&T / T-Mobile merger (update: companies respond)
You heard right. Bloomberg is reporting that the United States government (!) just filed court papers in Washington, D.C. to block the much ballyhooed tie-up between AT&T and T-Mobile USA. Oddly enough, T-Mobile and AT&T promised this morning that a total of 5,000 jobs would be hand delivered to the US if the two telcos were allowed to become one, but it’ll take a heck of a lot more convincing now. For what it’s worth, this doesn’t mean that the deal is or isn’t happening — it’s just another step in the process — but it most certainly doesn’t bode well for proponents. Nor for AT&T’s share price.
AT&T tempts FCC, promises to bring 5,000 jobs back to U.S. if T-Mobile merger is approved
AT&T said on Wednesday that it promises to bring 5,000 of its outsourced call center jobs back to the United States if its proposed $39 billion acquisition of T-Mobile USA is approved by the FCC. AT&T also promised that it will not layoff any AT&T or T-Mobile call center employee who is employed at the time of the merger. In addition, AT&T will invest $8 billion in its U.S. infrastructure and the Economic Policy Institute has suggested that move could provide up to 96,000 new jobs. AT&T made its announcement hours before the United States Justice Department filed a lawsuit in an attempt to block the merger. “AT&T’s elimination of T-Mobile as an independent, low- priced rival would remove a significant competitive force from the market,” the Justice Department said. AT&T responded and said that “there was no indication” from the DOJ that a lawsuit was being contemplated. “We remain confident that this merger is in the best interest of consumers and our country, and the facts will prevail in court,” AT&T Senior Executive Vice President and General Counsel Wayne Watts said, noting that AT&T will continue to fight for the merger’s approval.
Read on for the full press release from AT&T.
FCC puts brakes on Qualcomm spectrum acquisition, will review with T-Mobile merger
The Federal Communications Commission announced on Monday that it will review AT&T’s planned $1.925 billion acquisition of Qualcomm’s FLO TV lower 700MHz frequency band at the same time that it reviews the carrier’s T-Mobile USA merger. AT&T announced its intentions to buy spectrum from Qualcomm in December of last year and said it planned to deploy the spectrum as “supplemental downlink” while it built out its 4G network. That acquisition was originally expected to close during the second half of this year, but the FCC clearly has some concerns on the matter. AT&T said the FCC and Department of Justice are on schedule to approve the T-Mobile deal in March 2012, however this could be a ding to AT&T’s 4G network plans if it was relying on having the Qualcomm deal approved by now. The FCC’s statement follows below.
We currently have pending before us the application of AT&T Mobility Spectrum LLC (“AT&T”) and Qualcomm Incorporated (“Qualcomm,”) and together with AT&T, (the “Applicants”) to assign licenses from Qualcomm to AT&T, which has today reached 180 days on the Commission’s informal timeline for consideration of merger applications. As you are aware, the Commission has been evaluating for some time the relationship between this proposed transaction and AT&T’s proposed acquisition of T-Mobile USA (“T-Mobile”). The Commission’s ongoing review has confirmed that the proposed transactions raise a number of related issues, including, but not limited to, questions regarding AT&T’s aggregation of spectrum throughout the nation, particularly in overlapping areas. As a result, we have concluded that the best way to determine whether either or both of the proposed transactions serve the public interest is to consider them in a coordinated matter at this time, without prejudice to independent treatment at a later date.
[Via Phone Scoop]
House Judiciary chairman Lamar Smith pledges support for AT&T, T-Mobile merger
House Judiciary Committee chairman Lamar Smith wrote a letter to FCC chairman Julius Genachowski and Eric Holder, the Attorney General of the United States, on Tuesday expressing his support of AT&T’s planned $39 billion acquisition of T-Mobile. Smith said he believes the FCC and the Department of Justice have only heard “one side of the story” from members of congress who provided “limited information” during recent briefings. Smith also said that his committee has “heard evidence” that the merger will:
Substantially improve the quality of the capacity of its broadband network thereby creating jobs an spurring innovation; use existing spectrum more efficiently to overcome the current spectrum shortage; expand its LTE mobile broadband Internet service to 97% of America including much of rural America; and provide better service to its customers thereby giving its competitors an incentive to improve their service.
Smith said any evidence from the congressional hearings that omits the aforementioned points “paints an incomplete picture.” Sprint has been one of the most vocal opponents of the merger and has said that, in contrast to creating jobs and innovation, the acquisition will “stifle” innovation in the U.S. Wireless market. Read on for more.
AT&T said Microsoft, Facebook, 76 Democratic members of congress, 72 mayors, 6 governors and “unions representing 20 million members,” are in support of the merger. However, Senator Herb Kohl, chairman of the the Senate antitrust committee has called on federal regulators to block it. In addition, Senator Al Franken said the acquisition will “affect consumer prices, customer service, innovation, competition in handsets and the quality and quantity of network coverage.”