Since the news surfaced about AT&T’s potential acquisition of T-Mobile, many have concerned themselves with AT&T’s motivation behind the move.

Unsurprisingly, Sprint, the company that stands to lose the most from the deal, is officially in opposition and has asked the government to block the $39 billion dollar transaction.

AT&T’s Mobilize Everything website was recently updated to reflect the news that a filing with the FCC has been made. In it, they expressed their reasoning behind the move, and the reasons why they believe it will benefit the wireless industry as a whole…

Oddly enough, one of the first things mentioned on the website is, (excuse me while I muffle my laughter) Competition and Pricing:

The U.S. wireless industry is one of the most fiercely competitive markets in the world and will remain so after this deal. The U.S. is one of the few countries in the world where a large majority of consumers can choose from five or more wireless providers in their local market. For example, in 18 of the top 20 U.S. local markets, there are five or more providers.

So wait, buying your competitor makes for more competition? This is what you’re telling me?

But wait, the hilarity doesn’t stop there…

AT&T and T-Mobile USA customers will see service improvements – including improved voice quality – as a result of additional spectrum, increased cell tower density and broader network infrastructure. At closing, AT&T will immediately gain cell sites equivalent to what would have taken on average five years to build without the transaction, and double that in some markets.

Oh, so that $25 billion that you will deliver to T-Mobile’s parent company, in cash no less, couldn’t have been used to upgrade your infrastructure? So basically, you’re admitting to your ineptness when it comes to forecasting, and being proactive? Check.

AT&T has helped make the United States the global leader in mobile broadband and smartphone sales. AT&T’s mobile broadband leadership, however, presents it with unique spectrum and capacity challenges. A smartphone generates 24 times the mobile data traffic of a conventional wireless phone, and the explosively popular iPad and similar tablet devices can generate traffic comparable to or even greater than a smartphone. AT&T’s mobile data volumes surged by a staggering 8,000% from 2007 to 2010, and as a result, AT&T faces network capacity constraints more severe than those of any other wireless provider.

Okay, I’ll give them a pass on that one. It’s safe to say that no one expected the iPhone to take off to the degree that it did, and those are some pretty ridiculous percentage hikes. I’m sure the tablets aren’t doing AT&T’s network any favors as well.

Even still, I think it’s sad that a company that has this much cash on deck sees purchasing their rival as the only way out of their problems. That shows poor planning, and pathetic forecasting. That’s what the suits at AT&T get paid to do. That’s why they get paid the big bucks. What were they doing all of this time?

Personally, I couldn’t care less whether or not the deal goes through. I hate the fact that there would only be one GSM provider in the states, but then again, it never seemed like T-Mobile was realistically getting the iPhone here in the US in the first place.

What do you think?

[9to5Mac]

  • Pam

    I think it’s a huge blunder on AT&T’s part, but it’s also a money-saver to buy out T-Mobile. It’s ONLY going to cost them $39B to basically double their abilities. If they had to go out and build it, it’d cost them much more, as well as customer losses because, let’s face it, Verizon is moving faster than they are.

  • c0ntr0l

    It would be nice to have the LTE iPhone faster than we would waiting on AT&T to build out the towers for the capability

    • This, I wouldn’t mind so much, though. Let’s face it, 3G is slow.

  • This is a huge money saver for AT&T, its also brilliant on their part, but I still don’t like it. This is going to demolish competitive pricing and we’ll be at a new price point in about a year.

    • Yep, competition can’t get any better from this move, no matter what the talking heads and AT&T spout off. Competition will only get worse; believe that.

  • Manuel

    I hate at&t and personally think those on T-Mobile will suffer over this deal. We get laughed at be other countries based on the rip offs of phone carriers asking for so much. This again is another rip. It’s a company who was stupid to base it on 1 product. From there, they lost that products exclusiveiness to a better carrier. Now, they have brought out 1 carrier off the thought that people might choose another company. This is why I hate at&t. I know its business, but the gov can’t let things like this pass.

  • Mcsteven

    This is a horrible written peice by an obvious hater. That’s awesome AT&T bought tmobile. Yes, far better service and competition with the other giant companies. Tmobile was gonna go out of business amyways.
    This guy is probably the same people that hated on the iPhone until it came to his network. AT&T is just staying ahead of the curve. That’s business…

    • Um, I’ve had an iPhone from day one, and still use AT&T. My point was that AT&T acts like this is good for competition. How? You tell me how it’s good for competition.

      • EastIndyGuy

        I’m sorry, but you need to improve your reading comprehension. No where in the snippets of the filing that you included do they say that the acquisition is good for competition. Instead they say that the acquisition will have a negligible impact on competition.

        “The U.S. wireless industry is one of the most fiercely competitive markets in the world and will remain so after this deal.”

        Maybe you should make an attempt at understanding something before making an asinine statement that makes you look foolish.

        But let’s dig a little deeper into your musings. You say AT&T should have already had the towers for their network even though it takes approximately 5 years from the time a company requests to build a tower until the time it is actually constructed. Now let’s do the math.

        First iPhone debuted: 01/29/2007
        Add 5 years to that date
        Date that the first tower should be up: 01/29/2012

        So once again, try thinking and understanding something before going off on an asinine rant.

        Writing like yours is why I rarely visit this site anymore.

      • @EastIndyGuy

        We don’t want you here if you have to use personal attacks to try to get your point across. It makes you look sillier than the person you’re trying to prove wrong.

        That being said, the article is implicating that this is good for competition. Read between the lines, and don’t take everything for face value.

        And regardless of whether you’re right, or I’m wrong, or we’re both right or both wrong, it’s a blog, it’s not the the CBS Evening News. Opinions are expressed here on a daily basis.

        If you don’t like them, fine, state your opinion; respectfully disagree. I’m fine with that.

        Lighten up, and have fun.

      • EastIndyGuy

        @Jeff

        Once again, reading comprehension does wonders. I made no derogatory remarks about you personally, so there were no personal attacks. Unless you consider my statement that you need to improve your reading comprehension as an attack. I see that as more of a criticism and not an attack.

        The comments I made were about the quality of your commentary. And yes, I know this is a blog and that opinions are expressed here daily, my comment dealt with how the quality of the commentary has gotten worse recently.

      • @EastIndyGuy

        asinine, foolish, etc.

        *shrugs shoulders*

  • ssaxto

    AT&T service for me has been okay and have not had any issues that a lot of people comment on. As for T-Mobile, in my area, it stinks but I have seen that their service is great in many areas except mine. This is why I moved my family over to AT&T. Competition for pricing – I have compared pricing for AT&T, Verizon and Sprint which is about the same. T-Mobile had lower prices but the service again was bad in my area so that was not an option for me but I believe T-Mobile users may be impacted by a price increase when merged so AT&T better be careful with changing their prices because the customers may bail on them. I would recommend a middle ground on pricing since you now have a bigger network, more towers and signal strength. You also now have 4G network which you have not rolled out yet.

    • sOleFresh

      i agree. AT&T pricing is NOWHERE NEAR as bad as it used to be..

      • @sOleFresh That is very true, they’ve done a lot to try to improve their public perception lately. I personally don’t mind AT&T’s service. It’s not horrible where I live, but I have friends that think otherwise.

      • sOleFresh

        same here.service in my area is great. i get 3G pretty much everywhere i go here with no problems…all i have to do is worry about them taking off my unlimited data plan due to me tethering 🙁 lol

      • Davewcoble

        @SOleFresh just jailbreak ur iPhone then u can tether 4 free that’s wat I do

  • adidas101

    I have to take note of ur last line. And say who gives a f**k if T-Mobile was/is not getting the Iphone? As if its the best device. Android on T-Mobile is awesome. N windows phones for the like 10 ppl that like em. This hurts T-Mobile customers. And at&t sucks balls

  • sOleFresh

    if im not mistaken, even if the merger does take place AT&T will NOT be the only GSM carrier. Isnt Verizon converting their CDMA over to GSM. hence LTE..CDMA has reached the speeds it can..Verizon will need to change in order to move to faster speeds..and we already know WiMax is out of the question.

  • Erik

    so yesterday, my friend’s carrier logo on his T-Mobile phone was going in and out between “T-Mobile” and “AT&T”. Needless to say, he was ecstatic to see full bars on his phone for once. Maybe they were testing it out?

  • Deathstar

    I have worked at AT&T for 8 years since they were originally AT&T Wireless, then bought by Cingular, then Cingular changed the name back to AT&T just adding Mobility =AT&T Mobility. Ever since Cingular bought AT&T Wireless this place fucking sucks! NO more bonuses, cut our benefits in half, no more employee recognition..nothing but do more work for less pay! I am a Data troubleshooting technician we support troubleshooting all data centric devices like iPad,iPhone, Android devices, Windows Phone devices laptop connect devices, micro cell, etc,etc. These Ass Clowns now want us,TECHNICIANS, to sale stuff like fucking U-Verse and tell you about “the benefits of paperless billing”..WTF! That is a customer service job not my job. I worked my self up from BS customer care so I do not have to do shit like that..now to save a buck for share holders you want me to do two or more jobs? Also if you guys ever call AT&T Mobility cust care and they offer to sale you U-Verse service don’t get mad at them they are REQUIRED TO DO THAT . if they do not do it they will get fired, So lets say you call in to cancel an account because you lost your job.. the rep still has to make a sales pitch. Utter BS. AT&T is very EVIL!!! IF this deal goes thru customers are screwed and so are the AT&T workers! Please block this FCC!

    • sOleFresh

      i know what you mean. ive worked for Receivables Management for just over for years now for AT&T Mobility (collections). i used to only have to say stuff pertaining to the call and the issue at hand. now i have a whole checklist of stuff to go over before the call is over..kind of annoying but oh well. ill deal with it. its my job; but sometimes im like really?!..this person did not call to talk about some of what im required to tell them!..i feel part of your pain @deathstar

  • ipadjunkie

    I build cell phone towers for a living it takes 3 weeks, not 5 years, a week for foundation, a week for building and stacking the tower and a week for setting dishes and antennas..

    • goofygreek

      and the time to get the permission and the go ahead on building the tower is what, instant. i think not. att tried to put a tower out in an empty field, that just happens to be in-between homes and a school. they have MORE than enough space to put one there, safely. Guess what? They have been trying to get it built for a year now. You wanna know the reason it takes 5 years. Because of all the people who dont want to see a tower in their back yard. thats why it takes that long.