FCC Says AT&T, T-Mobile Merger Not In The Best Interest Of The Public

Expanding on our earlier report concerning the FCC decision, FCC Chairman Julius Genachowski issued a draft order earlier this morning calling for an Administrative Hearing before an Administrative Law Judge. According to the FCC, the Chairman’s order requires final approval from the full commission and if it receives the green light, the hearing will be conducted like a trial — involving witnesses, evidence, cross examination etc.

In his order this morning, Genachowski concluded that the AT&T, T-Mobile deal is not in the best interest of the public and believes that the deal violates antitrust laws and that the deal would lead to massive job losses. The FCC says the deal would lead to an unprecedented amount of power in the hands of a few companies and there is no evidence the benefits of the deal outweigh the harms it would bring.

Such a hearing would further delay the process especially considering the FCC would wait until the conclusion of the Department of Justice antitrust lawsuit against AT&T. That trial is expected to begin on February 13th and is now seen as the first of two major government hurdles AT&T must overcome.

The FCC pored over 2,000 pages of documents and held more than 100 meetings with all the interested parties, including the applicants and many opposition parties. The hearing itself would see a verdict delivered by a judge and the judge’s decision would then be considered by the FCC commissioners.

It’s noteworthy how strong the opposition is coming from the FCC especially given that in all but one market (Omaha, where T-Mobile doesn’t offer service), the FCC found that the merger would reduce competition in every market. Furthermore, the FCC rejected AT&T’s claims that the deal would lead to a faster 4G or larger rollout of 4G.

AT&T seemed less than thrilled by the decisions:

“The FCC’s action today is disappointing,” said Larry Solomon, SVP of corporate communications. “It 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.”

The last time such an event took place was the proposed merger of EchoStar and DirectTV which saw both companies pull out of the deal.

For now, the AT&T, T-Mobile merger looks less likely than ever.

Tags: , , , , , , ,

  • http://twitter.com/LTEstyles LTEstyles

    The differences between EchoStar and DirectTV is that AT&T and T-mobile is not a merger but a TAKEOVER.

    • Imperfectly

      Seriously they need to stop calling it a merger.

    • slickjammy

      For purposes of market analysis, it makes no difference, does it?  Acquisition, merger, whatever.  Its a business combination that will effect competition.  Regardless of the form of combination, the consequences on the market is what’s relevant.  The EchoStar/DirectTV result would have been the same if it was an acquisition rather than a merger.  Same consequences on competition.

      • Mark

        Sorry, it will _affect_ competition, not “effect” it.  To affect is to change or modify; to effect competition would mean to bring about or create more competition, the opposite of what the merger would do.

        Regardless of word choice, though, I agree completely with the intended meaning of your post.

      • Mark

        Sorry, it will _affect_ competition, not “effect” it.  To affect is to change or modify; to effect competition would mean to bring about or create more competition, the opposite of what the merger would do.

        Regardless of word choice, though, I agree completely with the intended meaning of your post.

      • http://twitter.com/WillieFDiazSF William Diaz ?

        There is a bit of a difference between an acquisition, a merger, and a take-over.
        In an acquisition generally one larger or smaller company is acquiring the assets of another company that is similar or complementary to the buying company. This usually happens when the selling company flops, goes broke, liquidates, etc. To acquire something – the basis of the word. (Pan Am was broken up and sold off and United Airlines acquired some of their international routes)
        In a merger the two companies become equals, retain both names generally (Lockheed and Martin Marietta merged to become Lockheed-Martin) (Sprint-Nextel) or one of the stronger product names (WebOS for Palm and HP), and both companies move forward with a combined product or service or entity that was created out of the basis that the merger is cheaper to produce than to produce on each company own.
        A take-over is when a hostile or non-hostile company buys a large portion of shares, either 50% or more, but often just a “single majority percent” of shares. That company then has the power to dictate what the other can and will do. Not because they “own” them, but because they hold the majority of shares and their purchase or sale of shares can directly increase or decrease the value of the company. If the value decreases, company may want to sell, then it makes it cheaper target for the original buyer to buy them out..

        T-Mobile and AT&T is more like a buy-out, which is when one company accepts a sale offer for another to buy their company and make it their own. This is totally different than an acquisition, a merger, or a take-over. Think of how Google and Apple buy-out companies. Think of the Delta buy-out of Northwest.

        The only “merger” AT&T ever did was when they merged Cingular into SBC/AT&T – both are operated as one combined name “AT&T” but are different units that compliment each other as one company rather than two.

        With T-Mobile, while they are similar, there is too much redundancy within both companies that would effectively eliminate any stance as a “merger” as NEITHER company would save anything by operating together as one. It makes more sense for the larger to kill off the smaller, and take what they need in a paid for acquisition type transaction thats really a buy-out. They are essentially buying limited spectrum, limited towers, massive amounts of customers. The rest will be sold off to recoup the costs. Thats not how a merger works.

  • Anonymous

    Time for the hail Mary ! Not looking good for this merger anytime soon.

  • Anonymous

    AT&T is so full of shit .

  • http://www.facebook.com/profile.php?id=100000041129068 John Angelo Moraitis

    Either way, we get the iPhone. We merge, we get the phone from At&t. We don’t, apple gives it to us. Thats the only way to stay alive, get the iphone one way or another. 

    • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

      That’s true, Apple knows that T-Mobile’s customer base is 30+ million. Apple wants access to these customers, so now that the AT&T deal is 99% dead, Apple should have no problem giving T-Mobile a compatible iPhone.

      • Anonymous

        It’s more like T-Mobile is NOT going to put up the billions over a few years to Apple in order to get that “special backstage” access. Sprint is already getting killed by it.

        • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

          Apple will have to bend over to T-Mobile’s terms if they want access to T-Mobile’s customer base and if they want to compete equally with Android.

        • Littlesis1774

          Apple always stated they want all carriers to have it

        • Anonymous

          Well, if you look at the deal Sprint had to sign into, basically a carrier has to fork over $20bil USD (in money or guaranteed iPhone sales) to have the privilege of carrying the iPhone.

          It seems T-Mobile doesn’t have the cash for that, nor wants to gamble money like that.

      • http://twitter.com/WillieFDiazSF William Diaz ?

        For a price. A price that while especially for Apple may be low, for Deutsche Telekom it will be too high as they dont want to invest in the USA anymore. 

        With an iPhone investment comes major network investment, spectrum acquisitions and buy-outs, and DT just wont do that for any phone at any price, even the iPhone.

        T-Mobile has a ton of spectrum but unless they are planning to recycle their PCS for 3G/4G and use the AWS for 3G/4G HSPA+/LTE, they arent likely to handle the iPhone on their network without issues for long.

        Apple could essentially create an iPhone that uses 1900Mhz EDGE/HSPA+ and AWS for T-Mobile, should T-Mobile start clearing up their 1900Mhz PCS spectrum for recycle use for HSPA+…But thats years away.

  • Anonymous

    As happy as I am to read this, my happiness is distilled by Tmo’s state of affairs as of late. The advertisements are horrible, still not getting much good press… besides stories of bad customer service, how bad has it gotten for the company? Has there been much focus on that? DT needs to get their act together or someone will probably have to buy them up… it’s probably going to be more likely the latter. But as long as they keep the same name and I can keep my plan, I will stick with them for now.

  • BP

    This is nothing to cheer about.  As of today T-Mobile doesn’t have a back up plan.  If this deal doesn’t go through T-Mobile has to start over and that means customers don’t get the best phones etc for a longer period of time.

    • TMoFan

      There is a backup plan. I’m sure there’s even a backup plan to the backup plan. DT may be saying otherwise but it would be insane to get into this in the first place without any backup plans.

      • TmoNinja

        Wherever you’re getting your facts, you are wrong. T-Mobile doesn’t have a back up plan and they have even told their employees such

        • slickjammy

          Why would they tell their employees about a backup plan?  If they want to collect the breakup fee, they wouldn’t go around communicating to all their employees that they’ve cooked up backup plans.  But believe me, I’m sure there has been contingency plans discussed at the top levels of management. Its just they haven’t publicized it for fear of losing the breakup fee.

        • PatheticLoser

          I’ll tell you this – T-Mobile had no plans past the end of 2012 until about 2 months ago. They thought it was a done deal.

        • TMoFan

          The notion that DT would enter into this without a backup plan is craziness. DT/T-Mobile USA are saying otherwise just show a united front and a commitment to the sellout but I don’t believe otherwise. Obermann himself has said that they have been in talks with five other companies.

          http://www.tmonews.com/2011/10/deutsche-telekom-says-plan-b-available-should-att-deal-fall-through/

          http://www.reuters.com/article/2011/09/29/deutschetelekom-idUSL5E7KT3JU20110929

          These are just tactics by DT to try and project the image that if this sellout is rejected T-Mobile will just crumble, but they don’t fool me. Not at all.

        • Littlesis1774

          T-mobile USA does not have a backup plan because DT will no invest in the american market

        • Anonymous

          Every company has a backup plan. You think they’re idiots

        • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

          That’s what they’re supposed to tell employees. What did you think, that they would tell the world what their backup plan is?

      • BP

        I didn’t say it correctly. You are right they do have a back up plan.  What I meant is T-Mobile doesn’ t have a back up plan good enough to overcome what they have loss.  T-Mobile is basically target kids with their advertisements.  For T-Mobile to get back to being great is going to take a long period of time.

    • Cityofnewyork3000

      You know they could always just leave and go where the best phones supposedly are.

    • http://twitter.com/WillieFDiazSF William Diaz ?

      From my understanding the backup plan T-Mobile has is minimal.
      1. They may gain a $3B roaming deal with AT&T and spectrum assets worth another $3B (spectrum that AT&T cant really part with, but it will be in the AWS spectrum). They could use that to open up coverage to offer larger areas of service (something T-Mobile needs to better compete) and the spectrum to reinforce areas they dont hold strong or to deploy in new areas. Or they could just start to recycle their 1900Mhz for HSPA+ just like AT&T did, add AT&T network as roaming, and then convert the AWS to LTE. Possible… 

      2. Take the money and invest it in Europe (as they publicly stated they would do) and sell off T-Mobile assets to any bidders that want to buy specific parts of it. Customers to one company, spectrum to another, towers to yet another, etc. – From my understanding, this is what T-Mobile wants to do. Sprint wants the spectrum and so does MetroPCS. AT&T wants the spectrum and customers. I believe Verizon may want the towers.

      • Littlesis1774

        T-Mobile USA if this deal does not go though they get screw. T-mobile USA does not get break up fee to goes directly to DT. If happens that T-mobile USA gets sold to foreign company like Vodafone and DT invest into T-mobiles in Europe. DT will no longer invest in American Market.

  • Jamar Eccleston

    NOW if just google buys t-mobile ;)

  • slickjammy

    There’s very little DT can do but wait all this out.  Their agreement with AT&T most certainly contained provisions that prohibited DT from taking any actions that would hinder or negatively impact the acquisition.  Coming up with contingency plans or taking other actions that communicate that the acquisition is not going to happen would allow AT&T to wiggle out of the ENORMOUS breakup fee when the deal fails.  DT has to sit, stay quiet and collect the $6billion breakup fee when the deal fails.

  • http://twitter.com/JackFetch JackFetch

    I’m sorry, but how does it violate anti trust laws when there are more than just these two mobile phone companies?

    • Superdude

      -Gsm monopoly.
      -Control over 40-45% of the market which would also result in higher prices for cellular service.
      -Extensive job losses would cause would increase unemployment rate,thereby cause the us government more money to take care of those people.
      -All the stores that would be closed down due to close proximity to other AT&T stores, would create losses for water supplying companies,energy companies and others.
      -I can go on and on all night if you want to know in detail.
      -

      • GUEST

        -GSM MONOPOLY- FALSE-YOU HAVE BOOST(SPRINT) METRO PCS STRIGHT TALK AND PLENTY MORE GSM CARRIER

        -40-45% MARKET FALSE-MORE LIKE 20% YOU FORGEETING ABOUT VERIZON AND SPRINT AND THEN ALL THE REGIONAL CARRIERS OUT THEIR

        -JOB LOST FALSE- THE BRING BACK MORE THEN 1000 JOBS THT WERE OUT SOURCED IF DEAL GO THROUGH NOT ONLY THT OFFERING CURRENT EMPLOYEES BONUS IF DEALS GO THROUGHS

        -STORES CLOSING MAYBE TRUE NOT SURE??

        KEEP GOING I HAVE REPSONSES FOR NETHNG U HAVE TO SAY NEGATIVE ABOUT DEAL

        • Supersekhon94

          Boost is sprint which is cdma and so is metro pcs. go do some research before u open ur stupid piehole.

        • Guest

          OMG, boost is IDEN and CDMA, and it says so right on their frackin’ website. STFU idiots.

        • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

          Get over yourself! The deal is not going to happen! And for your information it IS a GSM monopoly. Boost mobile is iDEN not freaking GSM! Do your research! In coordination with Verizon Wireless, the new AT&T and T-Mobile combination would control 80% of the market. GET YOUR FACTS STRAIGHT PLEASE BEFORE YOU COME HERE WRITING IN CAPS!

        • http://twitter.com/WillieFDiazSF William Diaz ?

          Boost Mobile is limited on iDEN now and Sprint has launched more CDMA phones under the Boost Mobile moniker than iDEN recently. I believe the ratio is like 5:1 CDMA favor.

        • Anonymous

          This country needs more competition with more companies! Not less.

        • Schippma

          Are you the CEO of AT&T cause you sound like him.

        • http://twitter.com/ITMedCEO Derrick Ford

          TOTAL LIES!! AT&T were idiots to even try this to begin with.

          Oh by the way I am a CEO!!!

        • Tuliom Mesa

          wow nothing but failure in this post guest

          GSM Monopoly ATT and Tmobile are the two carriers that offer GSM based phones. Metro and Boost (sprint) offer CDMA Phones, therefore one GSM Based carrier if deal goes through

          80% of the market will be controlled by ATT and Verizon, which equals to the 40-45%. Sprint only owns like 20% or less. And dont forget metro owns less. Tmobile already owns like 20% so ATT + Tmobile = 40-45% and Verizon controls half of it already.

          Job loss is inevitable, Tmobile Retail stores close, Tmobile call centers close, Tmobile in general closes and ATT has no need for extra hands on deck, maybe a couple 1000 but 100k will lose jobs.

          Stores will close, ATT has a lot of retail stores next to Tmobile shops, Why would you want two ATT stores next to oen another?

          You sir are full of FAIL

    • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

      80% market concentration in between AT&T and Verizon is the reason why this violates anti-trust laws. Two companies = Duopoly. Sprint would end up a distant 3rd if such deal went through so they wouldn’t count just like MetroPCS and other WAY smaller carriers.

    • Maschwar77

      It would create a monopoly on GSM service.

  • TMoFan

    If at&t continues to live in delusion DT should renegotiate the terms of the breakup and call this thing off. That way DT could make a deal with someone else (Obermann said himself they were in talks with five other companies) and this thing won’t get dragged on. At this point at&t may see the writing on the wall but will drag this out to continue to put T-Mobile’s future in question affecting their ability to do business. at&t is a huge company and can do afford to drag this out, but not the case with T-Mobile. 

  • Matthew Lawless

    DT made out like bandits in this deal. Now they will put T-Mobile back on the market with the extra spectrum and roaming agreement with AT&T. My question is can Sprint afford the price?

    • Anonymous

      Sprint can barely afford to run itself right now.

    • Anonymous

      Wouldn’t Sprint or Verizon taking over T-Mobile be the same results as ATT in terms of competition, pricing increases, loss of jobs, and resulting in only 3 major carriers?

      • Anonymous

        Sprint may have a problem, that depends on if the DOJ and FCC are bent on having 4 national carriers or not. Sprint is smaller but they have so many issues, they had to take a loan out to pay for those iPhones.

        I think locally MetroPCS (hope not) CSpire and US Cellular (which has AWS frequencies) may merge if DT really does want to get rid of Tmobile USA. Perhaps the cable companies venture between Comcast and Cox which also has AWS may enter the game since cable cos have wanted a quad play (tv, internet, phone, wireless) for a while.

        Internationally – Orange, America Movil could decide and enter unless DT’s debacle has them scared.

        Forgot to mention Lightsquared, although they have no interest in being a carrier or so they say

    • Anonymous

      Sprint would in all likelyhood be the last company DT would want to talk to about selling to right now.  Besides, they spent all that money getting the iPhone.

  • http://twitter.com/ITMedCEO Derrick Ford

    “Stick A Fork In It…. It’s Done!!!”

    • BeefWellingDone

      LOL, I was ready to post that…word for word!  Thought I’d read what others had to say first.

  • JustSaying

    T-Mobile does have coverage in Omaha…

  • Sanchezkk

    Awesome! I myself love t-mobile and I have close to a year left. If the takeover does not happen, I am definitely renewing with them again. Sorry At&t. :)

  • Guest

    Ok, lets say that this deal completely falls apart what does everyone actually think is gonna happen to T-Mobile? DT obviously doesn’t want to keep financing it. Do you think DT changes their mind and goes all in to turn T-Mo around? Does a new buyer come into the picture? If so any predictions? Or does DT just shut down T-Mobile and sells off its assets? 

    • Auser72

      They do what they been doing. Changing their plan and pricing structure. Increasing their handset variety, focusing on handsets for data usage at every price point. And aggressively going after prepaid market using their national network and fast data speeds to steer customers from regional carriers.

    • Anonymous

      I’m still fairly certain that there was an agreement between AT&T that Tmobile stands to get millions if this deal falls through. Tmobile US will be fine till the next mobile telecom (Or maybe even Google) makes an offer.

    • Anonymous

      Don’t forget that AT&T owes T-Mobile a bunch of stuff if the deal falls through. While it won’t save T-Mo, it’s quite a bit of breathing room.

      • Frank

        DT gets a bunch of money, but I doubt they’ll spend any of it on T-Mobile. They’ve already written them off.

    • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

      Yes Vodafone or Orange, any foreign carrier who wants to enter the U.S market can purchase T-Mobile, and the U.S will still have 4 national wireless carriers.

      • Jj

        Keep in mind that Vodafone would have to divest it’s 45% ownership share in Verizon Wireless if they were to do that.

      • Anonymous

        Vodafone already owns 45% of Verizon. Orange may step in, who knows they’re large and already have a partnership with Detsche Telekom in the UK sharing nearly everything. America Movil is another potential suitor, they’re huge and have lots of money. Carlos Slim already has businesses in the US including MVNO carrier.

        I’d like to see the merger fail but I hope it’s not MetroPCS picking up the leftovers of Tmobile.

        Should be interesting to see how all this plays out nonetheless

  • PatheticLoser

    New jobs my ass. The only way they’ll be new jobs is because neither company is filling open positions right now.

    • Wandyp2673

      http://www.snagajob.com/jobs?c=t-mobile
      If you google AT&T you will find the same thing

    • GUEST

      NOW THTS INCORRECT I PERSONALLY KNOW T-MOBILE IS DOING HIRING IN A COUPLE CALL CENTERS….SO THIS STATEMENT OF YOURS FALSE!!!!

  • http://twitter.com/jamesdax James Matthews

    It’s in my best intrest.  I want the Titan damn it.

  • Tbyrne

    This is great! AT&T, get yet grubby paws off my T-Mobile!

  • Cityofnewyork3000

    Those bums cannot see the writing on the wall, this Deal is Dead in the Water.

  • Anthonynyc1a

    I love t_mobile,l hope so the merger falls,its better for economy,google could buy t_mobile,please DOJ, FCC, help us.

  • Tuliom Mesa

    I think google should buy out Tmobile instead, invest in its android phones since Tmobile offers the most android powered phones in the four major carriers, and Tmobile can work hand to hand with google to expand its 4G and innovate the world!

    • Ghen

      Google is android.

      • Tuliom Mesa

        Exactly, Google is android so buying out Tmobile would only make sense since its one of the carriers who offers google powered phones.

        • Frank

          But then they’d be competing against themselves as far as Android devices on other networks.

  • Frank

    I wish people would quit bringing up Google buying T-Mobile when the AT&T deal fails.

    Not only have most analysts said they’re not in a good position to do it, and that businesswise it would not make sense, they’ve said themselves they don’t want to.

    • zazou1

      Actually a lot of analysts are saying that Google should buy T-Mobile as soon as the Motorola deal has been completed. Eweek has a great article on it.

      • Mark

        I think if anyone BRK.A should buy out Tmo.  Magenta needs ownership that’s committed to growing a successful business, not a tech company that’s become so scattershot that it can’t get out of its own way.

  • Justhanging

    Time for T-mob to ramp up and sell hard their mobile internet advantages while they still have a leading technology. 

    Sell it through multiple channels, don’t worry about branding it as T-mob. Do like Sprint, RESELL RESELL RESELL.

  • Anonymous

    can’t delete

  • Anonymous

    Google buying T-Mobile could be a good thing but it would probably just bring up anti-trust issues of it’s own.

    • Littlesis1774

      Google is not going to buy T-mobile

  • J. Williams

    Woohoo…

  • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

    YAY!!!!!!!!!! If the FCC and the DOJ are both against this, it seems to me this deal now is completely dead! It’s time for AT&T to walk away! Their chances are now lower than 20%!!!

  • Adriana10

    Omaha nebraska needs more coverage there roaming is not enough

  • JGenachowski

    Dude, ATT need to STFU with the “creation of new job” argument.  What the h3ll are they smokin’?  I’m sick and tired of their crap about ” billions in new investment and the creation of many thousands of new
    jobs….” 

    The public isn’t stupid.  Why don’t you use the $39 billion you’re going to give T-Mo and invest in that.

    • FtKnoxTMO

      Agree with all that, except that the $39 Billion is going to GERMANY to DT, not staying here and building network and jobs.  They already admitted that AT&T could build out their LTE network to 97% of the US for only $18 Billion.  Now they have what, 4 cities on 4G.

    • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

      So true, those 39 billion can be used here in America. Instead they are willing to send that to Germany in order to eliminate competition of course.

  • blackerryfan

    t-mobile service is a joke thats why they have wifi calling because it doesnt even work inside buildings

    • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

      Actually, wifi calling is a very good thing for consumers. If you were overseas and made a call on wifi calling… guess what? You wouldn’t pay roaming fees for it! So please stop trying to thrash T-Mobile. I don’t know where you live but as with any wireless carriers, they work in some places and in other places they do not work. You should be glad they offer wifi calling, at least they are trying to get your service by using wifi, unlike other companies who don’t give squat if you get service or not!

      • Blackberryfan

        look at the tmobile 3g coverage map its dots of purple why verizon and att have almost all of the land covered 

        • Anonymous

          Can you be a little bit more specific?  and based on what land covered? or might I say, REGIONS?

        • Blackberryfan

          okay tmobile has 3g 4g in the marjor cites in the us so they have little dots for that if you see the verizon one it has red all over and at has alot more 3g coverage

        • Blackerryfan

          i live in omaha nebraska we have a pop of 500.000 people and its used off of att i mean i dont even get service in half of the city its a joke

        • Blackberry

          im sure you live a huge city where t-mobile acually works but if you go into a suburb your screwed

        • 123

          No one cares about omaha or Nebraska. 

        • Blackberry

          thats why tmobile has no customers

        • Blackberry

          verizon cared about omaha and nebraska and they 105 million customers so how about that you loser

        • Blackberry

          and att cares too that why we have five att store here

        • 123

          lol, we have more than five stores within a 10 mile radius here in LA. Obviously the cost to do business is too high in omaha to be profitable or else tmo would be all up in your business. Again, no one cares about omaha or Nebraska.

        • Blackberry

          okay evey cell phone provider is in omaha nebraska expexct tmobile so how does nobody care about omaha or nebraska so obviously no one cares about t-mobile becasuse there the smallest company and noone wants it??????? so how about that

        • Blackberry

          why is tmobile the smallest compant?????

        • Anonymous

          It costs upwards of $1,000,000 to put a tower up not including maintenance. One tower covers around 3 miles I think, could be wrong though.

          As a business owner I try to attract only potential customers I think will make me money. I don’t want my costs to go up and go broke dealing people who won’t be profitable for us.

          I know there are others who pursue those potential customers and monetize them and there’s a lot of money to be made, but for my company it makes sense to avoid them

          Opportunity costs, it’s how businesses work.

        • Blackberry

          thats tmobile is the 4th largest provider because they dont have the coverage. when verizon att ans sprint have service here what does that say about t-mobile

        • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

          None of these issues are an excuse for this AT&T acquisition to be allowed. T-Mobile will just need to improve their service, or if they get bought by another company then that company will invest in it…

        • 123

          Spot on fabio!

        • 123

          great post xmiro! exactly the point I made below. 

        • lalas

          The range for a cell phone tower is typically about 22,000 feet, or a little under 5 miles…fyi

        • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

          I live in NYC and have no problems with T-Mobile, and of course Verizon has more coverage available, that’s why they’re more expensive. Go to them if you don’t like T-Mobile. Enjoy paying higher rates :).

        • Blackberry

          dude if you didnt get service in half of the city you lived in would you be like i love t-mobile

        • Abc

          you dont need to love t-mobile. but at the same time you dont need to criticize it too…
          people choose whats best for them..its case by case basis.

        • Abc

          Thats why you have choices my dear. And choices are best for customers. Give your hard earned money to the carrier you like and suit you best. You dont need to degrade one carrier to highlight your point or show that your carrier is the best. Are you trying to convince people and make them migrate to your choice and impose your will upon them?

        • Abc

          Thats why you have choices my dear. And choices are best for customers. Give your hard earned money to the carrier you like and suit you best. You dont need to degrade one carrier to highlight your point or show that your carrier is the best. Are you trying to convince people and make them migrate to your choice and impose your will upon them?

    • Anonymous

      huh? an you have proof of this assertion? Probably  not but WiFi calling makes sense for me personally. I just moved, but I had 4-5 bars steady at the apartment, right near a 4G tower and my 3G speeds were blazing. Still love WiFi calling… it *doesn’t* use up my anytime minutes so I can keep using Google Voice like I did with MyFaves and we can stay on the lowest family plan so the 1000 minutes can go to my partner who likes to have long winded conversations with people

    • ogopogo

      You realize that WiFi calling is for more than just spotty coverage right?????

      What other carrier offers you this feature that does NOT deduct from your minutes, and allows FREE calls back to the US when traveling abroad?

      Well??? The silence is almost deafening.

  • blackerryfan

    tmobile works in the top 20 largest cities and everywhere else your on gprs and one or two bars

    • Craigers

      Simply not true. Not even close to true.

  • Blakcberryfan

    why is t-mobile sold in nebraska there are no tmobile towers and there is are not any local area codes they should stop celling the prepaid phones at target and walmart

  • Pirana

    jajajajaja I cant believe you people all I read is shit ,writing like you know whats going to happen . For your info the reason DT is selling is cause they invested too much money in the technology and that they did not see income as DT expected and no longer wants to invest more . So lets hope if the deal does not goes through , I hope tmobile keeps operating as now otherwise we may be seeing alot employes without a job if the mergers falls

    • http://twitter.com/SParKlngCyaNide SparklingCyanide

      are you on crack?  DT barely gave the USA wing of T-Mobile any money to compete whereas they threw buckets of it to its other ones worldwide.  If T-Mobile had the money the other T-Mobiles had around the world for Marketing, spectrum, and New phone deals then they wouldn’t have been in this position in the first place.  Obviously Pirana knows very little about whats going on.  Its completely DT’s Fault because they’ve been stingy with T-Mobile USA all these years.  Telling them compete and not barely give them the money to do so, they’re morons who obviously hate the USA.

    • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

      The acquisition is very likely (almost 100%) not going to happen anymore. T-Mobile may be in  a tough position right now, but as with any company, they can overcome it.

      • Guest

        Were is your proof that “The acquisition is very likely (almost 100%) not going to happen anymore.”

        • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

          Are you kidding me? It’s very obvious why it’s not going to happen.

      • Littlesis1774

        I don’t think they can make as independent company since all the other networks roll out with LTE. T-mobile without LTE and iphone won’t last. DT is going to take that money bail out T-mobile USA and upgrade all European T-mobiles 

      • Littlesis1774

        I don’t think they can make as independent company since all the other networks roll out with LTE. T-mobile without LTE and iphone won’t last. DT is going to take that money bail out T-mobile USA and upgrade all European T-mobiles 

  • Kevin Danker

    I wish to God Google would buy it.  They absolutely have to deliver broadband as everyone who does is destroying their business model. 

  • Maschwar77

    As a T-Mobile Monthly4G customer, I could not be happier with the service and with the poor merger odds.  I never need to get customer service involved because T-Mobile’s service works very well.  And, no, my credit is not poor rather I don’t want to be locked into a contract.  I don’t mind waiting a short while for the latest and greatest phone to buy on Craigs List.  I have an HTC myTouch 4G Slide and it was one sweet phone.  I don’t want to lose these perks going to the price-gouging AT&T.  

  • T-mobileuser

    t-mobile needs to start adding towers on all of the moderate coverage areas

    • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

      I live in NYC and coverage is excellent, but I do agree, the more coverage they have in other states the better that they can compete against the other carriers.

      • Gregp74

        This is my biggest issue with T-Mobile. At home is great, but if I’m not in the city or on the interstate, by coverage is nothing.

        • Aero

          I get great coverage all over my metro area and surprisingly in the foothills

        • Aero

          I get great coverage all over my metro area and surprisingly in the foothills

      • Littlesis1774

        Coverage is not the only the problem that T-Mobile is facing. They don’t have LTE which is what Verizon, AT&T and now Sprint is getting next year. AT&T, Verizon, Sprint  has more variety phones other then Androids. I have no doubt in my mind that Apple right now is working on iphone 5 with 4g and if that happens T-mobile is screwed.

        • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

          HSPA+ has comparable speeds to LTE. It’s LTE advanced which can definitely make HSPA+ dead. And T-Mobile can partner up with a company that has LTE if it needs access to it. So I don’t think they’ll be completely screwed…

        • Littlesis1774

          T-mobile still does need to upgrade their towers so they run both iphone and android.

      • Littlesis1774

        Coverage is not the only the problem that T-Mobile is facing. They don’t have LTE which is what Verizon, AT&T and now Sprint is getting next year. AT&T, Verizon, Sprint  has more variety phones other then Androids. I have no doubt in my mind that Apple right now is working on iphone 5 with 4g and if that happens T-mobile is screwed.

  • http://twitter.com/Paulster1011 Paulster101

    AT&T is mad now. I bet they slap their i pay phone lemmings with a multitasking fee.

  • 123

    My faith in our government is slowly waxing with the FCC coming out swinging at ATT. Let’s just hope that they don’t get greedy and get bought out by att. 

  • enjoijams

    Im hoping it doesn’t go through and T-Mobile gets that roaming deal. That would be amazing for when i get the European Galaxy Nexus that compatible with both at&t and T-Mobile hspa+ & edge.

  • Superdude

    FCC and DOJ should break up AT&T and Verizon into smaller companies. They have way too big market share already.
    Common DOJ slap their asses and teach them whose the real daddy!.

  • t-mobileuser

    yeah t-mobile has the least about of coverage thats not fair

  • Kyle Weller

    Google should buy T-Mobile for these reasons:

    Google could ensure that all T-Mobile’s Devices get the latest version of Android Operating system(security fixes, ics, future versions of android and bug fixes)

    Android Phones through T-Mobile would be cheaper, because since its owned by Google, T-Mobile wont need to pay licensing fees.

    Google could expand its Geo Location system.

    Google would probably lower data charges since Google has bought most of the black fiber all over the country and wouldnt have to pay another isp for internet access.

    Google’s Towers would be energy efficient, Google could use each tower as a Solar Cell that powers itself and also puts power back into the grid to profit $$

    Google would give people TRUE unlimited DATA plans with streaming TV to mobile devices through their broadband towers.

    Google could blanket the US with Residential wireless hotspots, or offer a at home device to share a percentage of your own bandwidth for Google’s Wireless network to improve connectivity for everyone, by sharing google could give people who own these hotspots or residential towers discounts.

    There would be more devices backed by a company who makes billions off mobile ads that would end up lowering handset prices for consumers.

    Google + T-Mobile = Everyone wins

    • Littlesis1774

      Does Google even want to by T-mobile?

      • Jeffrey

        They’ve said they don’t, but whenever talk of AT&T’s T-Mobile purchase comes up, everyone rushes to the assumption that Google wants them.

        Google’s apparently not interested in getting directly into the wireless industry.

        Even if they were, I don’t see them going after T-Mobile. When Google debuts something, they like it to be pretty cutting edge. I tend to think if they were interested in starting a wireless carrier, they’d build it up themselves using the latest technology — LTE or LTEA, rather than buying up T-Mo’s gear which has a limited future.

    • Littlesis1774

      Does Google even want to by T-mobile?

    • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

      Although I agree it would be nice for Google to buy T-Mobile, I don’t think it’s going to happen and they most likely want nothing to do with the wireless industry except to sell their android devices..

    • firebird

      Google doesn’t charge licensing fees for Android, and if they did it would be charged to the phone manufacturers, not the carrier.

  • http://twitter.com/Paulster1011 Paulster101

    T-Mobile is the smallest of the big four and has earned all their customers. 

    Verizon #1 has bought all their customers through company buy outs. As did AT&T and Sprint.Sprint lost millions of customers after buying Nextel, and then earned millions back. Verizon did not build the best network they bought good companies and built on that.

     The new AT&T bought Cingular (not the other way around). Cingular, which was hugh, even before the AT&T wireless merger.Went back to AT&T.Now all of that buying back and forth and a couple of cable companies and I think a couple more little cell phone companies The new AT&T still goes nowhere in building themselves up. AT&T buys iphone rights, ( of course one might argue they have bought more customers again) Now they have more customers then their infrastructure can handle. Duhh. service really sucks. Lets do upgrading but better yet lets buy T-Mobile. 

      And now throw me into that over bloated underserviced mess? Drop dead AT&T. They told us they are going to shut down our 3g 4g data service to roll out LTE. A wonderful thing for the whole Nation. Aren’t 30 million T-Mobile customers a part of that whole Nation? So why should we get our high speed trashed when you have the spectrum to roll LTE without T-Mobiles Spectrum? And AT&T says the FCC is hindering the great benefits AT&T is about to bestow on our Nation? yeah right. You loose. Man up and pay. Dont drag it out court for years.

       The DOJ is suing you, I hope fine you 10 billion, give it to T-Mobile and half of that unused Spectrum. That even things up a little.

        

    • http://www.facebook.com/iiJecire @Jecire

      Very good.points i concur

    • Aero

      very good point that the biggest did not become the biggest because they are great, but because they had the deepest pockets to suck up other companies. 

    • Aero

      very good point that the biggest did not become the biggest because they are great, but because they had the deepest pockets to suck up other companies. 

    • Dpro

      ah no you have your facts wrong Cingular was an is owned by SBC . SBC is the new AT&T parent company. It owned Cingular before it bought AT&T wireless. They kept the name Cingular until SBC bought AT&T long distance. Thereby owning the whole AT&T namesake and being able to change their name to AT&T. GET YOUR FACTS STRAGHT! This is all available on the internet.

      • Dpro

        OH and I am not a fan of AT&T but I can’t stand it when people like you get your facts wrong and then state it as fact. Do the research before stating stuff.

        • Chosen8one8

          lol….kinda ironic that you scold someone for doing research, and yet you have it completely wrong….hahaha

      • Chosen8one8

        lol….SBC was an the result of the original AT&T monopoly disintegration.  so they were forced to disband for the same reason that they’re trying to buy t-mobile.  so AT&T should just be happy that they can be the same entity they were forced to break up because they had a monopoly almost 30 years ago.  now they’re trying to get rid of their GSM competition and own all the GSM spectrum, on top of rolling out LTE, which is a form of GSM technology.  AT&T now owns themself again.  congratulations.  

         so you get your facts straight.  

      • Chosen8one8

        lol….SBC was an the result of the original AT&T monopoly disintegration.  so they were forced to disband for the same reason that they’re trying to buy t-mobile.  so AT&T should just be happy that they can be the same entity they were forced to break up because they had a monopoly almost 30 years ago.  now they’re trying to get rid of their GSM competition and own all the GSM spectrum, on top of rolling out LTE, which is a form of GSM technology.  AT&T now owns themself again.  congratulations.  

         so you get your facts straight.  

    • Dpro

      ah no you have your facts wrong Cingular was an is owned by SBC . SBC is the new AT&T parent company. It owned Cingular before it bought AT&T wireless. They kept the name Cingular until SBC bought AT&T long distance. Thereby owning the whole AT&T namesake and being able to change their name to AT&T. GET YOUR FACTS STRAGHT! This is all available on the internet.

  • Deceptivesmiles

    There’s a lot of gripes about TMOs coverage and discussions of coverage maps etc etc. Yes AT&T and Verizon have expanded but at the expense of how many companies? Had not they bought these other companies, how large would their coverage area be?

    Also, besides prices, TMO offers wifi coverage, tethering and hotspot, and have amazing data speeds while not even using LTE. I’ve ran benchmarks against my coworkers Verizon phone and my dl/ul rates were almost twice his with his “great” LTE.

    DT doesn’t invest as much money as they should into TMOUS which is an issue. The decline of this acquisition, notice I didn’t say merger, would give TMOUS a lot of spectrum and money to invest in the network.

    • Clifford891

      Spectrum yes bc dt can’t do anything with U.S. spectrum. The money however is dt’s doubt theyre giving it to tmous. I’m assuming they’ll take it and run.

  • Deceptivesmiles

    There’s a lot of gripes about TMOs coverage and discussions of coverage maps etc etc. Yes AT&T and Verizon have expanded but at the expense of how many companies? Had not they bought these other companies, how large would their coverage area be?

    Also, besides prices, TMO offers wifi coverage, tethering and hotspot, and have amazing data speeds while not even using LTE. I’ve ran benchmarks against my coworkers Verizon phone and my dl/ul rates were almost twice his with his “great” LTE.

    DT doesn’t invest as much money as they should into TMOUS which is an issue. The decline of this acquisition, notice I didn’t say merger, would give TMOUS a lot of spectrum and money to invest in the network.

  • http://www.unscripted360.com Deacon

    so let’s just move on with this shall we .. the thing seems as dead as ever BUT i bet they approve it lol .. stupid government.

    • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

      Doubt it, they won’t approve it.

  • Thomas Brezinski

    I still don’t get it.  AT&T claims “prevent billions in new investment and the creation of many thousands of new jobs”.  Someone please explain how a merger will actually create jobs?  As for the billions in new investment, um AT&T is shelling out tons of money to a German company, that will benefit the US economy how?  And if it doesn’t go through AT&T is just going to sit on that cash and not invest it?  Yes that’s it just to spite the FCC AT&T is not going to invest in it’s future at all, it’s just going to build giant cash reserves.

  • Thomas Brezinski

    I still don’t get it.  AT&T claims “prevent billions in new investment and the creation of many thousands of new jobs”.  Someone please explain how a merger will actually create jobs?  As for the billions in new investment, um AT&T is shelling out tons of money to a German company, that will benefit the US economy how?  And if it doesn’t go through AT&T is just going to sit on that cash and not invest it?  Yes that’s it just to spite the FCC AT&T is not going to invest in it’s future at all, it’s just going to build giant cash reserves.

  • Dave Macias

    i still insist if Deutsche Telekom AG wants to get out of the US market then why not selling the company to an international carrier? you want investments in the country? then woudln’t an international carrier invest on what’s on t-mobile and make it work in our market? wouldn’t new jobs can be created if this X carrier decide to expand and compete with the other 3? woudln’t be fair to open the doors to foreign investment too? yes, i know T-Mobile is an European carrier but i prefer ten times another European carrier than go through AT&T , Verizon or Sprint heck even Metro PCS does not catch my attention. 

  • Dave Macias

    i still insist if Deutsche Telekom AG wants to get out of the US market then why not selling the company to an international carrier? you want investments in the country? then woudln’t an international carrier invest on what’s on t-mobile and make it work in our market? wouldn’t new jobs can be created if this X carrier decide to expand and compete with the other 3? woudln’t be fair to open the doors to foreign investment too? yes, i know T-Mobile is an European carrier but i prefer ten times another European carrier than go through AT&T , Verizon or Sprint heck even Metro PCS does not catch my attention.