T-Mobile Dealers Don’t See A Future With AT&T, Worried About Post-Merger State

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One group of folks expecting bad news come the passing of the AT&T/T-Mobile merger are the third party dealers amongst a Wall Street Journal reports that 9200 AT&T and T-Mobile stores exist nationwide with around 41% of AT&T stores having a T-Mobile store within one mile. AT&T has unsurprisingly said that a portion of their cost savings will come from “rationalizing real chains, advertising and back-office systems are a big part of the deal’s rationale.”

While AT&T has said they look forward to working with T-Mobile’s independent dealers “in a manner that is mutually beneficial” Wall Street analysts expect consolidation especially in areas where stores are only a few miles apart.

The Wall Street Journal tasked real-estate research firm CoStar Group Inc to track down the locations of every AT&T and T-Mobile store nationwide. Their study found that 41% of AT&T’s stores have at least one T-Mobile store right around a mile away. The overlap is greatest in the west, especially in Denver, Salt Lake City, Phoenix, Las Vegas and Los Angeles where the one-mile distance is most likely to occur. For their part T-Mobile says it is still planning on expanding and adding over 200 stores run by independent dealers this year and has offered to sign the leases helping those locations avoid some of the risk. T-Mobile currently runs 2,000 company-owned stores with 1,100 branded partner stores against AT&T’s 2,300 company-owned locations and 3,800 independent ones.

Smaller dealers are right to fear for their future considering AT&T’s existing relationship with third party retailers with plenty of businesses expected to be left in the cold. However, not all T-Mobile dealers see the AT&T deal as bad news, instead seeing opportunity with the influx of a huge new customer base they can tap provided AT&T is willing to work with larger sized independent retailers. Todd Heiner, owner of Express Locations LLC which currently operates over 80 locations in nine states believes a company of his size would fare well. However Mr. Heiner understands that a company operating just five stores would be unlikely to see the same considerations as his company.

Doug Chartier, T-Mobile’s senior vice present for nation accounts and business sales states that the performance of individual locations will help determine where they stand when the AT&T deal closes. “Any business is going to look at their portfolio of assets and say, ‘Boy, what are the ones with the highest returns and the highest value?’” he says.

While third party retailers are often considered less popular as a place for purchase over a retail store it’s hard not to feel for their potential misfortune. A “rash” of store closings especially in outdoor strip malls which are frequently populated by cell phone stores would hit the economy hard. Outdoor strip malls are currently undergoing 10.9% vacancy rates that are expected to rise to a 21 year high this year alone.

But hey, this deal will create jobs, help the economy and give everyone a unicorn right AT&T?

Wall Street Journal

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  • Tidybown56

    Does anyone know why Tmobile is for sale? I heard the Germans are selling Tmobile because they think United States is going down the toilet.

  • William

    If you have Tmobile and can tether and watch netflix on your laptop or play your ps3 online thru your 4g wifi connection on your mytouch.You need to come over to AT&T where that is a violation and an offense .If you tether on a AT&T you will receive a threatening letter from Ralph de La Vega stating that you can be placed on a $45 limited data plan .

    • None

      And he will get a letter with a picture of my fat a$$!!

      • http://twitter.com/mashryock Mark Shryock

        Or send Lulzsec after him.

      • http://twitter.com/mashryock Mark Shryock

        Or send Lulzsec after him.

  • http://twitter.com/tmoore4075 Tim Moore

    IF this goes down do we have any idea when that would be? 

    • MagentaMadness

      They’re still on course for around July 2012.

      • None

        Being a cynic, I believe it will not happen until after the presidential primary elections and caucuses.  Until then, I feel the regulaters sit on their hands when there is the potential for another divisive issue.

        • MagentaMadness

           Just going by what was said on the latest regional vp all hands meeting.

        • None

          I meant to agree with you.  The cynic part of me just reinforces that date.  Cannot have this happen during the primaries.

        • MagentaMadness

           Just got word, they’re looking to push the time frame up from July 2012 to March 2012.

      • None

        Being a cynic, I believe it will not happen until after the presidential primary elections and caucuses.  Until then, I feel the regulaters sit on their hands when there is the potential for another divisive issue.

      • Tabatha9999

        Would you please tell me where you get that date? I was told March 2012

        • CharlieSheenisaMoron

          you were told? I thought, by your other posts, you already knew everything and nobody knew more than you. So how were you told something you apparently already knew. Unless you are full of BS. Yeah…ill go with the full of BS option lol

        • CRT24

          The approval process is on track for March of 2012…..doesn’t mean it will or will not be approved but the “process” is on track. Then it will be roughly another 6 months for the companies to fully integrate the customers, billing, towers, employees, and stores.

        • MagentaMadness

           Umm, from our managers, oh and from Humm’s mouth directly at our last meeting. Note I stated “around” July. Relax punchy.

  • http://twitter.com/Cat_Isidor Cat Isidor

    As a person who can think of two Tmo stores less then a mile from each other…Is that really an issue? LOL  

    • Asdf

      upfit of an existing tmo retail space will be $30k-$50k per location – signs, carpet, paint, fixtures, and then each store carries 50-75k of inventory (at cost) – who’s gonna pay for that???

    • Asdf

      upfit of an existing tmo retail space will be $30k-$50k per location – signs, carpet, paint, fixtures, and then each store carries 50-75k of inventory (at cost) – who’s gonna pay for that???

  • http://twitter.com/Cat_Isidor Cat Isidor

    As a person who can think of two Tmo stores less then a mile from each other…Is that really an issue? LOL  

  • Anonymous

    At&t already thinks its gonna happen, i mean, in their commercials they already talking about the merge and what would “change” when they did… LOL

  • Donotmerge2234

    If the merger goes through, I’ll have my mom decide between Verizon and ATT. I don’t think she wants to go back to Sprint based on their customer service in the past. If the merger doesn’t go through then we’ll be sticking with good ole T-Mobile.

    • T Mobile’s reckless spending

      If Sprint is so worried, why dont they just improve their customer service then they would be fine.

      • CharlieSheenisaMoron

        well they can always pay off random groups to fake the customer surveys and then pay off consumer reports and all that. Oh wait, im not a fuc(<ing moron like you who believes that the onyl way to sway business outcomes is by paying people off. Sure corruption exists, but you are on of those people who live in the grandmas basement and havent seen the light of day in years lol. Do you also play dungeons and dragons by yourself….you dont?,,,,oh thats right, your imaginary girlfriend joins you. haha

      • CharlieSheenisaMoron

        well they can always pay off random groups to fake the customer surveys and then pay off consumer reports and all that. Oh wait, im not a fuc(<ing moron like you who believes that the onyl way to sway business outcomes is by paying people off. Sure corruption exists, but you are on of those people who live in the grandmas basement and havent seen the light of day in years lol. Do you also play dungeons and dragons by yourself….you dont?,,,,oh thats right, your imaginary girlfriend joins you. haha

    • T Mobile’s reckless spending

      If Sprint is so worried, why dont they just improve their customer service then they would be fine.

  • Tabatha9999

    Everyone feels that way. This is why ATT is illegally paying people off like GLAAD to lie to the FCC to make the merger go through. Would not the rest of us get arrested for that?

  • Tabatha9999

    Everyone feels that way. This is why ATT is illegally paying people off like GLAAD to lie to the FCC to make the merger go through. Would not the rest of us get arrested for that?

    • CharlieSheenisaMoron

      you like claiming random things like this huh? i bet you are also convinced that the president is just a puppet government and there is a conglomerate of evil company heads who have a secret base in mt rushmore. 

  • Tabatha9999

    Everyone feels that way. This is why ATT is illegally paying people off like GLAAD to lie to the FCC to make the merger go through. Would not the rest of us get arrested for that?

  • http://twitter.com/mashryock Mark Shryock

    In a parallel universe T-Mobile is buying AT&T and everyone is happy.

  • http://twitter.com/mashryock Mark Shryock

    In a parallel universe T-Mobile is buying AT&T and everyone is happy.

  • http://pulse.yahoo.com/_W2U4MJ3IM2N24PC3X65ZNJWK2Q Jonathan

    I believe this deal is a done deal no matter what you do you will lose in the end . I am not for at&t but when it come to the government track order they will approve this merger with conditions. If  you think that t mobile will survive with that 3 billion and spectrum is going to help t mobile in the long run you are wrong that money is already gone when Deutsche Telekom uses that money for their debt when the merger failed.

  • http://pulse.yahoo.com/_W2U4MJ3IM2N24PC3X65ZNJWK2Q Jonathan

    I believe this deal is a done deal no matter what you do you will lose in the end . I am not for at&t but when it come to the government track order they will approve this merger with conditions. If  you think that t mobile will survive with that 3 billion and spectrum is going to help t mobile in the long run you are wrong that money is already gone when Deutsche Telekom uses that money for their debt when the merger failed.

  • http://pulse.yahoo.com/_W2U4MJ3IM2N24PC3X65ZNJWK2Q Jonathan

    I believe this deal is a done deal no matter what you do you will lose in the end . I am not for at&t but when it come to the government track order they will approve this merger with conditions. If  you think that t mobile will survive with that 3 billion and spectrum is going to help t mobile in the long run you are wrong that money is already gone when Deutsche Telekom uses that money for their debt when the merger failed.

  • T Mobile’s reckless spending

    This is not a thought or an opinion . This is the truth. T Mobile was giving out their customers pass codes. They spent million trying to sue the person who called in and requested it.  They hired 4 attorneys . The most expensive attorneys that money can buy and paid for their hotel , flight and etc and the case has not even begun yet. I have the case number and everything. Who do you think is more to blame? Is it T Mobile for giving our thier customers passcodes or is totally the fault of the  caller. What do you think about T Mobile spending millions on this case and it is still going on?

  • T Mobile’s reckless spending

    This is not a thought or an opinion . This is the truth. T Mobile was giving out their customers pass codes. They spent million trying to sue the person who called in and requested it.  They hired 4 attorneys . The most expensive attorneys that money can buy and paid for their hotel , flight and etc and the case has not even begun yet. I have the case number and everything. Who do you think is more to blame? Is it T Mobile for giving our thier customers passcodes or is totally the fault of the  caller. What do you think about T Mobile spending millions on this case and it is still going on?

    • CharlieSheenisaMoron

      ok, so you have a case number and tmobile is involved in a legal suit. You do know that tmobile doesnt hire legal help right? they have a chief counsel who is an executive who has a team of lawyers on retainer that work for all tmobiles issues. These people work hard to make all the forms, handle all the lawsuits, etc that go on….. 

      not to mention its not odd for them to pay for the flight, hotel room, food, etc. why wouldnt they. those expensive come as part of doing the job they are being told to do. It falls into the same idea as a company paying for the computer they expect their employees to use at their desk. 

      not to mention that its no surprise a case hasnt begun yet. Many legal battles can take months and years to go to court. anyone who has ever tried to sue someone knows that. if you get injured by a car accident it can be a couple years or more before you ever see money from lawsuits. 

      • T Mobile’s reckless spending

        Sorry to tell you , but T mobile has 3 attorneys in Florida and one in St Louis working on a Federal case because they gave out the customer’s passwords.

      • T Mobile’s reckless spending

        Sorry to tell you , but T mobile has 3 attorneys in Florida and one in St Louis working on a Federal case because they gave out the customer’s passwords.

    • CharlieSheenisaMoron

      “They hired 4 attorneys . The most expensive attorneys that money can buy ”

      btw, what did you expect? tmobile to hire the worst attorneys?

      • T Mobile’s reckless spending

        It is the cost that is the issue. Obviosly it is passed on to the customer.

    • what did you just say?

      really? how exaclty did tmobile relaese customer’s passwords? i work for tmobile and can tell you every way we release information to a customer is covered under the customer confidentiality statement also noted in our terms and conditions. i’d love to read the lawsuit perosnally if you have a case number. . . is it that made up like your story?

  • Christopher

    AT&T has gotten real nasty over the last couple of months.They have a guy named Ralph de la Vega running the show and he’s been calling cellphone Internet users that tether ,”Data Hogs”.If you are tethering on Tmobile you will get the shaft on AT&T,so bring the Vaseline.

  • Anonymous

    Does T-Mo News see a post merger future?