Saturday, September 03, 2011

AT&T (and Verizon) hypocrisy

AT&T argues that their acquisition of T-Mobile would benefit the public because they would be able to increase their fourth-generation LTE coverage from 80% to 97% of the US population, but couldn't they do that on their own without T-Mobile?

It turns out they had an internal proposal to do just that. In a recent FCC filing AT&T estimates that they could deploy the approximately 44,000 nodes needed to achieve 97% coverage by the end of 2013 at a cost of $3.8 billion.

However, in the next paragraph they say that senior management had rejected the proposed build out since there "was no viable business case for such an expansion." The extra coverage was not worth even $3.8 billion to AT&T.

Yet they have offered $39 billion for T-Mobile. Part of that is to acquire T-Mobile customers, but those folks might not stick around since they had already decided against AT&T. Still, what alternative would they have?

That pesky competitor T-Mobile would be gone and there would be only two competitors remaining. Sprint was small and not doing so well. How long until there would be only one competitor? Sweet.

Lest you think that I am an exclusive AT&T basher, let me point out that I was a Verizon customer until last year when they treated me so badly that I left them for cable.

Furthermore, Verizon can match AT&T's hypocrisy. If you want to come unglued, check this post on Verizon<.a>.

We are toast.