U.S. DoJ To AT&T/T-Mobile Deal: “No”

by Da'Von B.

This is potentially good news, no matter how AT&T spins this, the deal would’ve resulted in higher fees for customers and the first small example is the text messaging plan. AT&T even suggested that they’d create jobs bringing 5,000 wireless call center jobs BACK to the U.S. There are significant problems with everything At&t is doing:

  • Spending $39 billion instead of spending $10-$15 billion to create a better service doesn’t make sense, truth is, T-Mobile’s “4G” is faster than AT&T and has potential to grow.
  • AT&T could still bring back those 5,000 jobs by committing to actually work on their wireless service, for some reason they refuse to put in the work to do this. And for an American company to dangle the “jobs” pitch out there to a struggling economy is sad and bad form.
  • AT&T doesn’t have a solid argument in the purchase of T-Mobile.
  • They’re already lying about their “4G”: T-Mobile’s “4G” isn’t real either it’s HSPA+ in other words T-Mobile and now AT&T’s “4G” is really true 3G, neither company will have true 4G until they roll out LTE something Verizon is beating both of them to the market with as AT&T will only have LTE in 5 markets by the end of 2011.

These are just a few points against this AT&T/T-Mobile merger, and in all actuality it should be Sprint that picks up T-Mobile, with Sprint moving to LTE (though they’ll make that announcement the first week of October), and solid competition all around AT&T would have to be forced to actually innovate and scale out. There’s no telling how this will go, but this is an interesting change of events to say the least.

**Update

Here are responses from Sprint and AT&T regarding the DoJ suit.

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