Watch Tomorrow’s Senate Hearing On AT&T/T-Mobile Acquisition

On Wednesday morning at 10:15am EST time executives from AT&T and T-Mobile will testify in front of the Senate Judiciary Committee in the hopes of justifying the acquisition of T-Mobile by AT&T. Tuesday afternoon saw a conference call with some of tomorrows witnesses who will appear before the Senate regarding the ramifications of such a deal. What are some of the main points you can expect to hear tomorrow? Thanks a Forbes Magazine recap of the call we have a pretty good idea:

 

  • Ed Black, President of the Computer and Communications Industry Association will state that a combined AT&T/T-Mobile will control more than 30% of the market in most towns and cities. Antitrust law generally prohibits any post-merger marketshare of more than 30% qualifies as “excessive.”
  • Steve Berry, President and Chief Executive of Rural Cellular Association, a group representing about 100 wireless carriers serving rural areas stated that a combined company would harm his association’s members. The combined company would “wield too much power over smaller carriers who rely on roaming agreements to give their subscribers national service.”
  • Sprint will become an “unwilling acquisition target.” Sprint would be left with just 16% of the wireless market post merger making them ripe for a takeover.
  • Andrew Schwartzman, President and CEO of public interest advocacy organization Media Access Project argues that T-Mobile plays an important role as an innovator in the current wireless market. The first to carry Android, the first carrier to offer in-home Wi-Fi support, the first to upgrade to “4G HSPA+” technology T-Mobile has a reputation for being flexible and affordable.
  • Gigi Sohn, President and Co-Founder of public advocacy group Public Knowledge implores the public reaction to the deal be taken into consideration. Consumers have left more than 5,000 comments on the FCC site and “have been clamoring to be heard on a T-Mobile site and an online petition Public Knowledge Organized.” Hmmm…I wonder what site and poll that could be?

 

Perhaps the best quote I’ve come across comes regarding this deal comes of Broadband Reports in an article earlier this evening:

What the deal will do is make an already massive company with a strong tendency toward anti-competitive behavior much larger, eliminate a competitor from the market while keeping T-Mobile out of Sprint’s hands (which make no mistake is the deal’s primary goal), and result in the elimination of thousands of redundant AT&T and T-Mobile employees. In addition to AT&T and Verizon’s existing dominance of the special access market, they’ll also now dominate 75% of the wireless retail market — which means higher prices. The deal has absolutely no support from real consumer groups or consumers, so suggesting the deal is in any way “pro consumer” is trademark AT&T arrogance.

Karl Bode, the author of the Broadband Reports article, I tip my hat to you sir!  Read his full article at the source link.

Thanks for the tip Tito!

Forbes

Broadband Reports

Tags: , , , , , , ,

  • Tito!

    #sayingno2att :]
    haha, I tipped the Forbes article! Or, at least I hope I did. :]

    • http://tmonews.com David

      You sure did and you got a little shoutout in the post!

  • Anonymous

    At&t is fooling no one, but I’m worried about Tmobile even if this doesn’t go through. They are bleeding customers fast.

  • Anonymous

    Everyone will disagree with me, but I don’t see any real probability of this deal being shut down. these advocacy groups always put on a big show, but ultimately market gurus and investment bankers will win the fight.

    • Erod188

      Disagree? i agree att is a big company that has a lot of people in the pocketbooks all these politicians and feds coming out against the merger are just putting a for sale sign

  • http://profiles.google.com/santi.sicko Santi Go

    Link To Where You Took That Screenshot.? I Want To Watch Tomorrow…

  • http://twitter.com/iGNetworks iGNetworks

    #3 thing you said I have been saying for awhile. Sprint will have to get bought. But what about T-Mobiles facebook just about anything T-Mobile has posted people have come in there and said things about the merger. Also, if you read there are complaints because T-Mobile simply is not listening to the customer and if you do not listen to the customer you end up losing them. Its like T-Mobile is ridding of things people want the most and adding things people don’t want and they have been doing this for at least 2 years now. They should have gotten rid of Even More/Even More Plus and reverted back to myFaves it was an outright failure as you can see the financial reports don’t lie. I like T-Mobile and hope they are listening before its too late.

    • Anonymous

      Sprint will never be brought by anyone else they will be fine as the LAST AFFORDABLE CARRIER LEFT STANDING if this merger goes through..

      • http://twitter.com/iGNetworks iGNetworks

        Sprint will have to be bought because the other 2 majors simply have 2.5x more customers and Sprint will become T-Mobile and never catch up. It is already being said around the web in which I said it first but now I guess others see the same thing I am. While others gain 2 Million per quarter, Sprint will be gaining 50% of that which is 1 Million but thats if Sprint can continue to be profitable after this merger. Eventually, we may only see 2 majors and a bunch of small carriers.

      • squiddy20

        Not even 2 weeks ago you were boasting how the AT&T/T-Mobile deal would NEVER go through, and here you are basically saying it at least has a chance. Shut up you uneducated moron.

  • RealOpinion

    You know if T-Mobile was serious about providing real 4G to all the areas outside their comfort zone then I’d be cool with that. We’ve had 3G since 2008 and it’s still spotty and slow as ever. Now they call it “4G,” but every single phone I’ve used bounces to EDGE/GRPS or GSM only all day long.

    DT has been unwilling to seriously upgrade its US subsidiary’s national network in order to be really competitive. DT now wants out. Trying to keep T-Mobile from being acquired is no different that arguing on the internet or the special olympics. It’s retarded. (no offense)

    I love my rate plan but no way in hell would I want to be part of Sprint. At least with AT&T we’ll get all that rural coverage and 700/850 MHz spectrum so our phones will now work inside buildings. People forget that for everything awful AT&T is they do bring some good and badly needed benefits to the table.

    Look we get to keep our plans. No change for us here. Plus we get better coverage. I say embrace change and stop being drama queens. Yeah drama queens.

    If the buyout gets blocked we get stuck with a carrier in limbo who doesn’t want to be here, will stall 4G expansion and just look for another suitor while its customer base continues to decline.

    • http://twitter.com/iGNetworks iGNetworks

      In response to your look we get to keep our plans. The company says that but that is false actually. We will be grandfathered till we get a new phone. We will then be forced onto AT&T plans. This is how the Alltel/Verizon merger went. They said the same thing.

      Another false is T-Mobile customers get a better network. T-Mobile customers will not benefit from over 90 million additional people on the network. This will most likely slow things down even more since now AT&T customers can take advantage of those frequencies as well. A total of a lil over 125 Million will be on the network and that will take a toll on the network. Side effects include even more intermittent data connection loading along w/ slower speeds. This will benefit AT&T customers reception wise but will most likely not increase data speeds by much. Once LTE is here you most likely will get fast data speeds at first but then it will boggle down to the point where its like HSPA+ 21 or even slower.

      If T-Mobile changes now and does rollback changes like Windows can do they can become profitable once again.

      • http://twitter.com/PsychoKilla666 Rene Shabastari

        Most phone enthusiasts buy their handsets unlocked, otherwise I agree completely

        • http://twitter.com/iGNetworks iGNetworks

          I have bought my phones unlocked before but in this economy sometimes saving money by extending a contact is the only thing you can do.

      • Mopar6464

        “We will be grandfathered till we get a new phone. We will then be
        forced onto AT&T plans.”

        When it’s time for that new phone don’t buy it through AT&T. Buy it cash with no contract involved and your Grandfathered T-Mobile plan will stay the same. You will not be signing a new AT&T contract so it will stay the same.Yes it will cost you upfront but the savings you will save

        from not having your monthly rate plan doubled would greatly out weigh that cost.

        And half my family was part of the Alltell/Verizon merger and they did the same with them. Again, the way to avoid the new Verizon contract is to buy your next phone cash without contract. And your grandfathered plan will stay the same. They are now on Verizon and have a killer rate plan that they kept
        when Verizon bought Alltell.

    • http://twitter.com/PsychoKilla666 Rene Shabastari

      AT&T has terrible phones

      AT&T cripples their phones

      AT&T has worst network

      I do not know where you live, but there is no worse coverage in L.A. than AT&T, and thats a major market, very pathetic, I don’t want to see how bad it would be in your area with all those combined customers on their abysmal network

      T-Mobile is a safe haven for family plans, I understand it might not be great for single line users, but for Families there is no other network as affordable as T-Mo

      • Bgale14

        No, $79.99 for individual contracted unlimited everything is as inexpensive as it gets for individuals. Tmo is great for both families and individuals. It’s always been that way.

  • Outtahermisery

    Numbers don’t lie. T-Mobile is not doing anything right in the eyes of consumers.

    They use a failed business model that does not work in 2011 and don’t offer any service or device compelling enough to get the attention of the masses.

    T-Mobile needs to be put out of her misery before they start to lose money.

    • http://twitter.com/iGNetworks iGNetworks

      I agree. However, they do not need to be put out of their misery they need to be revived.

    • Anonymous

      Tmobile does not need At&t that’s for sure they have far better devices than At&t and better affordable prices hands down. At&t is the one’s that need tmobile and their spectrum shame on At&t

    • TBN27

      Then you are terribly blind. Their onl weejness is thee networrk is nott strong outt west

  • T-MoAndroidExpert

    While I love T-Mobile , as well as this website, and I commend you guys for trying to make consumer’s voices be heard, from a T-Mobile employee’s view I would rather the buyout go through. I’m not quite sure that I understand exactly everyone protesting the buyout think this will accomplish. Even if you do win, and it gets denied, the damage has already been done. In fact, things have been getting bad for a while now. Nearly half a million of our customer’s left…a majority of those BEFORE the AT&T fiasco was made public. Traffic in the store’s have pretty much slowed to a standstill. Working today, I pretty much only talked to three people the entire time. At this point, I’m not even sure the iPhone would save the company. T-Mobile has a reputation, however unfairly, of being cheap, having bad coverage, and having a bad phone selection. All of us who read’s this blog know’s that’s untrue. But it seems that the general public does not or more importantly, doesn’t care. For whatever reason, a larger number of people are fine with paying AT&T’ and Verizon’s rates for service. It’s the old feeling of “You get what you pay for”. I just don’t see T-Mobile making a comeback after this.
    The best thing about T-Mobile is it’s great attention to customer service. Which based on the levels or morale seems to be about ready to collapse. Already in my market we are seeing most of the more experienced reps head to AT&T, Verizon or part’s unknown for jobs. I’m considering an offer myself. The sucky part about it is, none of us wanted to be put in this position. We were willing to do whatever it took to win customers and keep them. It definitely feel’s like we were sold out.

    The fact remains that even if the buyout get’s denied, it still will not save T-Mobile. DT is not going to just change their minds and say “Just kidding guys!”. More than likely they’ll just let the company wither and die. Or wait until some other company swoops in and buys us out. Which to me, would seem to put consumer’s at a worse disadvantage than making them switch to AT&T. Those customer’s are not coming back. And if some of the comment’s are to be believed I’m reading around the internet and hearing at work, if customer’s do leave for Sprint or Verizon, would that not just bolster AT&T’s claim that there IS competition among carriers in the U.S., given that customer’s had an option? I dunno, it just feels at this point like it’s a lost cause.

    • Bgale14

      As a fellow employee, I agree.

      • TMOTECH

        As A fellow employee of 12 years that has built this network from the ground up, I say you both are a couple of cheese eating surrender monkeys that can take a flying leap. We are finally starting to do great things around here and the Germans are retreating like the French running from rock throwing Haitians.

        • T-MoAndroidExpert

          Well can you please tell me what great thing’s we are doing? Because after those Q1 number’s, I would sincerely like to know. If these things that we are doing are so great as you say, why is the retention package that’s being given to frontline employees worth less than most of our monthly commission checks? Sorry, But every retail employee know’s by now that it’s time to get out while you still have options. You can say whatever you want, but I’ll take being gainfully employed over some insane loyalty to a company who barely want’s to keep it’s employee’s around.

    • Skeeterflea

      How about you inform the customer of said services. T-Mobile just launched one of the greatest Android devices in history, hell its in the EFFING Guinesses Book of Records! But did anyone not following a blog hear about that? Nope. Y?

      • T-MoAndroidExpert

        For whatever reason, that phone, while a good device, is getting returned left and right in out store. Your right though, we never did advertise it like it should have been. Regardless though, that phone is not going to save the company.

    • Phil

      Actually with all the free press TMO has gotten from this merger if it is nixed someone else will come along I bet . Not with 39 billion but T-Mobile will still go on . This merger has been a better marketing tool than any of your advertising campaigns . I watch alot of hoops . Those Mytouch 4g ads are horrible . Why the G2X was never marketed I will never know . Almost feels like an intentional flesh wound .

  • Javon_jones

    T-mobile shall live F O R E V E R!

  • rwahl

    As a loyal t-mobile customer for 8 years now, I have never been upset with the service. In my 6 years of being in the military, I’ve moved my residence 4 times and have hardly had problems with service. Pretty much everywhere I’ve gone T-mobile has gone with me.

    As a customer, I have mixed feelings about this merger. It’ll be great coverage wise, but I’m not looking forward to AT&T customer service, rates, or this possible duopoly in the future. So, my question is, what will happen to my existing contract? Will AT&T honor the contract I have with T-mobile?

    To all the T-mobile employees, I’d like to tip my hat to you. Thank you!

  • Phil

    T-Mobile doesn’t want me but I don’t want to leave . Its like T-Mobile wants the party to end but the punch bowl isn’t empty . Pretty awkward stuff .

  • Cellularcrazy09

    Ok so I know I will probably get a lot of mess for saying this, but I hope the merger goes through….gasp! The thing is…
    1) Verizon since their buyout of Alltel has been extremely non-competitive. They have taken away annual upgrades for primary users. They have taken away “new every two” credit. And they have not once lowered their prices or changed their plans since the merger. Thats almost what 3 or 4 years now! Maybe if the merger goes through, Verizon will actually have someone to compete with. Plus Verizon has the highest ARPU of any carrier! They are price gouging their customers!
    2) T-Mobile is a great company, but they are sinking right now. They are shedding customers like crazy, and a buyout was inevitable. Who else was t-mobile going to get bought out by? Sprint? They raised prices recently with their requirement of their “$10 Premium Data Fee” seems pretty anti-competitive to me! AT&T is the only one adding value to their plans by lowering their data fees, and adding “Any Mobile, Anytime.”
    3) Also the only reason people are saying that this is “putting humpty dumpty back together again” is the fact that the company’s name is AT&T. If Cingular had kept its name instead of changing it back to AT&T it wouldn’t have been an issue. Nobody said anything about MA Bell when Verizon bought Alltel. Yes they had to divest and sell some of their markets, but most everyone was for the merger because people got better service. Same with this merger. AT&T will use this merger to their advantage and build out their network.

    I had to see T-Mobile go, but if a company can’t compete, it goes under. I would much rather see T-Mobile go out gracefully than have to file bankruptcy and get auctioned off!

    • Phil

      Why you will get flack is because of how illogical what you are saying is . The things that made Verizon “non competitive” after the Alltel merger would make AT&T as well right ? That is why everyone is concerned about a duopoly . Excuse me but I don’t recall Cingular having a government given landline business . I don’t recall Cingular having U-verse or looking at buying Dish Network . If you call Directv they answer the phone AT&T – Directv . They never answered Cingular -Directv . Cingular could never bundle multiple packages and throw in wireless service as an afterthought .

      Competition can’t thrive if smaller companies are bought off . AT&T is trying to become a monopoly again . This merger should not go through even if that means T-Mobile is auctioned off in pieces .
      AT&T was broken up for a reason .

  • Havoktek

    Ok…people, comment time is over. Let the show begin!!

  • TMoFan

    I’m glad that this buy-out is getting some congressional attention. Even
    though they can’t do anything, they can set the tone and there are a
    lot of issues here regarding this buy-out that is anti-consumer,
    anti-competitive and will create a more concentrated environment that
    will result in a lack of innovation and high prices in the long term.
    That smarmy at&t CEO likes to point out that there just hundreds of carriers to choose from but in my area I really don’t have much of a choice because most of these companies are not available in my area. I suspect that is true for a lot of people, as most of these carries are specific to a certain region (Cellular South for example).

    I’ve been with T-Mobile for ten years, and it’s been a pleasure doing business with a company that values me as a customer. I have no doubt that that spirit will be killed when/if at&t takes over. Huge thanks to all the T-Mobile employees!

  • dominicoo0

    whats the link!?? i wana watch!

  • dominicoo0
  • http://www.criolabrazuka.com Junia Rosa

    In case someone would like to watch the hearing, you can do so here:
    http://www.c-span.org/Live-Video/C-SPAN3/

  • Huh?

    “Sprint would be left with just 16% of the wireless market post merger…”

    How does a merger change Sprints market share percentage? There are still the same number of subscribers and Sprint would still have the same portion of the total.

    I don’t get that argument.

    • MaGENTA

      I don’t either. How would simply combining T-Mo’s and AT&T’s market share decrease Sprints?

  • Opposition

    The small backhaul providers are worried. See Link:

    http://thehill.com/blogs/hillicon-valley/technology/160407-backhaul-industry-fears-atat-merger

    A big backhaul provider is SprintLink and Sprint is just getting back on its feet again. I know that my cable ISP provider uses SprintLink and so my T-Mobile UMA calls use SprintLink backhaul. Cable companies also provide wireless backhaul. Then you also have the independent tower companies losing out as AT&T shuts down antennas following a merger.

    This is not a done deal. Plenty on people stand to lose with this merger, not just T-Mobile customers and employees.

  • http://www.criolabrazuka.com Junia Rosa

    Let the maddness begin…

  • http://www.criolabrazuka.com Junia Rosa

    Let the maddness begin…

  • ShotWithAnSLR

    Tmonews gets mentioned in the hearing! +100

  • ShotWithAnSLR

    Tmonews gets mentioned in the hearing! +100

  • ShotWithAnSLR

    Tmonews gets mentioned in the hearing! +100

  • ShotWithAnSLR

    Tmonews gets mentioned in the hearing! +100

  • ShotWithAnSLR

    Tmonews gets mentioned in the hearing! +100

  • Anonymous

    THEY MENTIONED TMONEWS THAT’S AWESOME!!

    “A pole on Tmonews shows that 77% of users are against this”

  • Poop

    poop

  • Anonymous

    goo.gl/trxgK

  • http://twitter.com/AWuzzer A Wu

    So very legit. Tmonews is now on the national radar!…not that it wasn’t before but even more so to non-geeks now!!!

  • LC

    Love the quote by Bode…so true, so true.

  • http://www.facebook.com/profile.php?id=1586820069 steadymobb

    Sprint doesn’t want ATT to buy T-Mo because that means they won’t be able to. I’d rather be with ATT than Sprint so I can still switch out my sim cards

    This deal is goin through

  • Keith4ya

    @70d7f321fa0de2b263e578f8459a84e7:disqus , @74a13e6127a2b7bf4b6edd5d7affd242:disqus, @tmo:disqus and ALL T-MOBILE USERS!!! Has anybody ever thought about the idea of all contracted consumers taking on share(s) of the company? We could write our own history. Let’s not give the CEO and President Philip Humm the satisfaction of the buyout. Let’s the give him the satisfaction of not kicking him the rear as we, the new share holders, tell him to get out and kick cans down the street. He has showed us that he’s not there on our behalf at the committee meeting. The banking industry has allowed it with membership credit unions were members own the bank and have shares. Why not allow us to own our own wireless company as well. We can do this by setting up our own board of directors, if the current board is not who we want, and each wireless phone line counts as one share or what have you. Also, there are other parameters that we’ll have to deal with. What do you say people? The idea first came to mind last week and this is the first time I’m sharing it with anyone. I think it is possible. I spend over $2,000/year in cellular service for my household alone with T-Mobile. Some of that can go towards paying for my shares. I think; it is possible and that will keep the jobs of fine customer service personnel that we pride ourselves on as a company. To rid ourselves of dead spots or non-service areas; just build the towers there to reach them in the coming months and years. We can do it; only together though. This will cease duopoly and monopoly possibilities. It will give us continued rights that this country was founded upon and growth towards new avenues in freedom of technology.

    • Keith4ya

      FREEDOM OF TECHNOLOGY – FREEDOM OF TECHNOLOGY

  • Anonymous

    tinyurl.com/2df4ccp