FCC Believes AT&T/T-Mobile Merger Would Harm Consumers
Federal regulators doing their jobs.
In a call with the media yesterday, The FCC became the latest federal entity to pile on AT&T's proposed purchase of T-Mobile America, when Chairman Julius Genachowski announced that the agency would be reviewing aspects of the proposed deal that appear to run afoul of the public good. The decision follows directly on the conclusions of an FCC committee that found the deal would harm consumers, by establishing what is euphemistically referred to as a 'overly concentrated' phone market, which would likely lead to higher unemployment.
Genachowski confirmed he has asked the other the other FCC commissioners - two Democrats and one Republican - to approve a plan to refer the issue to a judicial hearing, and that AT&T will be required to show that it is in the public interest. This follows on the U.S. Justice Department's recent filing of anti-trust charges intended to block the deal outright. Any judicial oversight approved by the FCC would have to wait until the Justice Department's anti-trust trial has concluded. That trial is scheduled to begin in the Washington, D.C. district court in February 2012.
Naturally, AT&T is not pleased by the development. In an official statement, Senior Vice President for Corporate Communications Larry Solomon reached into a bag full of business-speak cliches, saying that the decision "is yet another example of a government agency acting to prevent billions in new investment and the creation of many thousands of new jobs at a time when the U.S. economy desperately needs both. At this time, we are reviewing all options."
While the final outcome is far from certain, particularly given the uncertainties of an election year in which the current administration seeks to curry favor from American business while addressing the concerns of consumers, expressed most famously in the Occupy Wall Street movement, the fact that two federal agencies working independently from one another does not bode well for the deal. Those of us opposed to the establishment of monopolies run by companies with an established track record of providing weaker services at higher prices can be excused for feeling slightly more optimistic than a year previous.
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Yay! There is justice in the world after all!
In other words...
ATT cant have their monopoly today, Let's try NOT to mimic the Situation in Canada.
YAY!!!
T-Mobile is soooo much cheaper.
I've been with them for like 7 or 8 years cause they always have the lowest prices.
I have Unlimited Data, Unlimited Texts and 1000 minutes on my phone and my wife's phone as well for $100.
If you ask me it's still a ripoff but it IS still a much better deal than any other phone company seems to offer.
It would certainly help with better signal in more places as they would take over T-Crapple's towers with this merger.
@Marco925 Monopoly? What are you even talking about? Sprint, Metro PCS, Verizon, Boost Mobile, and even more local and regional carriers PLUS the fact that Deutsche Telecom has stopped investing in the United States (Basically screwing existing T-Mobile subscribers). Yeah, a real GREAT idea to prevent the acquisition of the smallest national carrier and the largest. It's not like Verizon and AT&T are merging, T-Mobiles subscriber numbers are marginal in comparison to the top 3.
Also, the fact that 2 of our idiot government agecies think this is a bad idea compounds the fact they are wrong. Remember the same Department of Justice that is compiling the proceedings against the merger is the same Department of Justice that screwed up a report about MUFFINS. I have no faith in our government.
The FCC has no interest in helping consumers. If they did, they would go die in a fire.
something we agree on cuecue
Of course AT&T is going to claim that the buyout will create jobs. They don't want to publicly admit that the restructuring of the 2 companies into 1 will in fact COST jobs as they terminate unneeded employees. Of course they'll claim that blocking the deal will prevent billions of dollars in new investments. They don't want to publicly admit that the investments that blocking the deal will prevent is investments in OTHER governments. Lets face it....based on history, AT&T is well known for shady deals, abuse of market position, extortionist fees, poor customer service, paying off government officials, and establishing a monopoly. Sorry, but AT&T is not concerned about what's best for consumers....only what's best for AT&T.
@Marco925 Monopoly? What are you even talking about? Sprint, Metro PCS, Verizon, Boost Mobile, and even more local and regional carriers PLUS the fact that Deutsche Telecom has stopped investing in the United States (Basically screwing existing T-Mobile subscribers). Yeah, a real GREAT idea to prevent the acquisition of the smallest national carrier and the largest. It's not like Verizon and AT&T are merging, T-Mobiles subscriber numbers are marginal in comparison to the top 3. Also, the fact that 2 of our idiot government agecies think this is a bad idea compounds the fact they are wrong. Remember the same Department of Justice that is compiling the proceedings against the merger is the same Department of Justice that screwed up a report about MUFFINS. I have no faith in our government.
You really should read history.... AT&T, at no point, has ever cared about what's best for consumers. AT&T has also made no attempt to fix their own network. AT&T is well known for lying. Reducing the number of nation wide carriers is NOT in the best interest of consumers to any extent. MetroPCS is a very small carrier. Boost Mobile is the pre-paid division of Nextel, which is a division of Sprint. You're also taking the only 2 national GSM carriers and merging them, giving them near total control of the GSM network in the US. That effects EVERY GSM customer in the country, whether they're an AT&T or T-Mobile customer or not. Having a monopoly on GSM is not a solution....it's a problem. AT&T has the financial means to properly expand and upgrade their network and thus far has proven a complete unwillingness to do so.
I say let T-Mobile subscribers vote on whether or not they want AT&T to take over their plans and then jack up their monthly fees.
Sykozis, I disagree, AT&T just finished an upgrade to their network and how often do you meet someone who says "I just have to have GSM over CDMI" it doesn't happen. Plus, you haven't addressed the fact that t-mobile has essentially been abandoned by its parent company, talk about a network that hasn't been upgraded, HSPA+ vs 4G anyone? And there are no plans in the future to expand. T-Mobile is hemorrhaging subscribers, so merger or not I doubt they continue to exist much longer and then what do you have? AT&T, a loaded company, that can just buy up GSM the easy way. I agree, the situation isn't the best, but this is a no-win if you are t-mobile customer.
Welve, way to spin what's going on about tmobile:
"t-mobile has essentially been abandoned by its parent company"
How long do you think the AT&T/T-Mo talks have been going on for? The reason why DT likely dropped funding for T-Mobile is due to what was the potential merger at the time they dropped it.
"HSPA+ vs 4G anyone"
HSPA+ on T-Mo was out and functional long before the other 4G technologies. Again, they likely stopped development due to the merger talks- it makes no sense to invest in new 4G infrastructure if you're about to be bought into a 4G infrastructure. The likelihood is, now that the merger may fail, they're looking at further infrstaructure investment.
" T-Mobile is hemorrhaging subscribers, so merger or not I doubt they continue to exist much longer"
The outflux of subscribers happened as a result of the merger talks. And if the merger fails, AT&T owes T-Mobile a lot of money and concessions.
Most of your points against T-Mobile were direct results of merger talks, and part of the deal is that if the merger does fail, T-Mobile is owed tons of concessions so that they can keep their place in the market. You'll also likely see a renewed interest and investment from DT.
Yea, I just switched to Verizon Wireless...this makes me feel even better about doing so.
I was going to comment, but pretty much what I was going to say has already been said.
T-mobile blows, they advertise 4G yet you only get 2G in certain areas. I know other people who have gone to the BBB to try and get a resolution to only be turned down but the BBB is a joke to. I can't wait till December 8th comes around so I can leave T-mobile. Screw those pigs!
Of course this merger means fewer jobs and the customers being screwed over even more. DUH!
Its funny how companies try to put negative spin on things when they don't get their way. And its really funny how some retarded people with no brains beleive it. I just can't beleive that there is so many retards. OF coarse being a technician, I do see my fair share. Half the time you can't beleive the news, as companies and government are always trying to spin things and spread propaganda. They think if they get enough people beleiving the lie, then it must be true. Anyways I am glad the FCC had the balls to stand up for the people this time, and not get paid off to make a bad decission.
IN YOUR FACE AT&T
No, isht, it's not in the consumers interest to reduce competition. Verizon , Sprint, T-Mobile seem to be getting along splendidly to roll out LTE. AT&T instead I don't think you are going to disappear if you don't get T-Mobile, you'll pony up and pay out your own money to get LTE done. And we will have 4 LTE networks to choose from.
If the government wants to produce jobs, it will not allow ATT to buy T-Mobile.
Exhibit A, ATT buys T-Mobile
ATT reduces the need to purchase more LTE hardware, acquiring T-Mobiles
ATT reduces staff by downsizing on redundancy in T-Mobile branch
T-Mobile share holders prosper, it does not improve the US economy
Prices for LTE service go up
Exhibit B
ATT is denied
Consumers have more competitors to choose from, and theoretically pay less for LTE
LTE has to stay competative thusly can not raise it's prices
ATT has to buy more hardware of it's own, thusly, LTE manufacturers demand increases, which may lead to more jobs
ATT has to install it's own LTE hardware ,increasing work load, which may lead to more jobs,
I do not see at all how ATT buying T-Mobile helps the economy. It helps ATT that's about it.
Funny, most of the time I tend to think the FCC is out to mess with consumers, nice to see it the other way around for once!
Also, I love the ATT death star pick! Priceless! (and I am an ATT customer lol)
The FCC has no interest in helping consumers. If they did, they would go die in a fire.
What an idiotic statement - did you manage it on your own or did you have to get help from the rest of your inbred family?
If it was any one other than AT&T it wouldn't be as bad.. Considering with the amount of spectrum they would have for a single carrier it would allow them to have service that would decimate the other carriers. However, its AT&T, so all it equates to is them using it to be greedy, screw the customer even more, and charge more for less.. The AT&T mantra.
Sykozis, I disagree, AT&T just finished an upgrade to their network and how often do you meet someone who says "I just have to have GSM over CDMI" it doesn't happen. Plus, you haven't addressed the fact that t-mobile has essentially been abandoned by its parent company, talk about a network that hasn't been upgraded, HSPA+ vs 4G anyone? And there are no plans in the future to expand. T-Mobile is hemorrhaging subscribers, so merger or not I doubt they continue to exist much longer and then what do you have? AT&T, a loaded company, that can just buy up GSM the easy way. I agree, the situation isn't the best, but this is a no-win if you are t-mobile customer.
It's common practice for a parent company to stop investing in a sub-division that's the subject of a merger deal. Companies don't like to invest money with what is essentially a negative ROI. Fact is, AT&T only does what's necessary to avoid lawsuits. AT&T currently has available more "spectrum" than any other cellular carrier, but instead of making use of it they choose to lie and claim they have to buyout T-Mobile to acquire the necessary "spectrum". In fact, I believe the most recently numbers were round about AT&T possesses nearly double the "spectrum" of Verizon and Sprint combined.....with an extremely large majority of it being unused.
If it was any one other than AT&T it wouldn't be as bad.. Considering with the amount of spectrum they would have for a single carrier it would allow them to have service that would decimate the other carriers. However, its AT&T, so all it equates to is them using it to be greedy, screw the customer even more, and charge more for less.. The AT&T mantra.
AT&T already has more unused "spectrum", than Verizon has total "spectrum"....
YAY!!!T-Mobile is soooo much cheaper.I've been with them for like 7 or 8 years cause they always have the lowest prices.I have Unlimited Data, Unlimited Texts and 1000 minutes on my phone and my wife's phone as well for $100.If you ask me it's still a ripoff but it IS still a much better deal than any other phone company seems to offer.
Did you stop and think that the reason they wished to be bought out was because they can't afford to be in the marketplace with those deals? This isn't a situation where if the deal doesn't go through everything stays the same. Either T-Mobile makes drastic changes, such as raises prices, having data caps, etc, or they ay very well choose to leave the US market altogether.
Of course AT&T is going to claim that the buyout will create jobs. They don't want to publicly admit that the restructuring of the 2 companies into 1 will in fact COST jobs as they terminate unneeded employees. Of course they'll claim that blocking the deal will prevent billions of dollars in new investments. They don't want to publicly admit that the investments that blocking the deal will prevent is investments in OTHER governments. Lets face it....based on history, AT&T is well known for shady deals, abuse of market position, extortionist fees, poor customer service, paying off government officials, and establishing a monopoly. Sorry, but AT&T is not concerned about what's best for consumers....only what's best for AT&T.
You really should read history.... AT&T, at no point, has ever cared about what's best for consumers. AT&T has also made no attempt to fix their own network. AT&T is well known for lying. Reducing the number of nation wide carriers is NOT in the best interest of consumers to any extent. MetroPCS is a very small carrier. Boost Mobile is the pre-paid division of Nextel, which is a division of Sprint. You're also taking the only 2 national GSM carriers and merging them, giving them near total control of the GSM network in the US. That effects EVERY GSM customer in the country, whether they're an AT&T or T-Mobile customer or not. Having a monopoly on GSM is not a solution....it's a problem. AT&T has the financial means to properly expand and upgrade their network and thus far has proven a complete unwillingness to do so.
And if T-Mobile decides to no longer do business in the US, does this not then leave AT&T as the only GSM national carrier anyway? Remember, while the government can deny the merger, they can not force any business to stay in business against their wishes.
Heck I'm not even American and I think that's a bad move.
@Marco925 Monopoly? What are you even talking about? Sprint, Metro PCS, Verizon, Boost Mobile, and even more local and regional carriers PLUS the fact that Deutsche Telecom has stopped investing in the United States (Basically screwing existing T-Mobile subscribers). Yeah, a real GREAT idea to prevent the acquisition of the smallest national carrier and the largest. It's not like Verizon and AT&T are merging, T-Mobiles subscriber numbers are marginal in comparison to the top 3. Also, the fact that 2 of our idiot government agecies think this is a bad idea compounds the fact they are wrong. Remember the same Department of Justice that is compiling the proceedings against the merger is the same Department of Justice that screwed up a report about MUFFINS. I have no faith in our government.
So, are you against the decision just because you hate the government?, or do you just have problems seeing the obvious?
Of course this merger means fewer jobs and the customers being screwed over even more. DUH!
No mobile provider has 4g or HSPA+ in all areas they cover. And as far as HSPA+, I get up to 9mb down and 6 up in places. Even when I only get 1 meg, it's good enough for me to check my emails or send pictures to the office for work in a matter of seconds. It uses less power than LTE and is fast enough for me. Hell, my home internet is only 10 meg down ans 768 up. How often are you downloading torrents on your phone anyhow? Videos only play so fast too. This" your internet is only 10 megs but it could be 30 megs so it's useless" attitude is so ridiculous... A society that is taught that nothing is good enough and we are getting ripped off because everything isn't perfect. Get over yourself.
Sorry, that last post was directed at Bonehed, not liverbriand.
"... the fact that two federal agencies working independently from one another does not bode well for the deal."
Should this not read, "... the fact that two federal agencies working independently from one another, reached the same conclusion, does not bode well for the deal."