Saturday, August 13, 2011

AT&T and T-Mobile Deal Takes A Hit

The original bit from Slashdot brought me to the full article. It would seem that due to an accident, AT&T published a document that shed some (bad) light on their intentions and the results of the upcoming merger with T-Mobile.

Yesterday a partially-redacted document briefly appeared on the FCC website --accidentally posted by a law firm working for AT&T on the $39 billion T-Mobile deal (somewhere there's a paralegal looking for work today). While AT&T engaged in damage control telling reporters that the document contained no new information -- our review of the doc shows that's simply not true. Data in the letter undermines AT&T's primary justification for the massive deal, while highlighting how AT&T is willing to pay a huge premium simply to reduce competition and keep T-Mobile out of Sprint's hands.

We've previously discussed how AT&T's claims of job gains and network investment gained by the deal aren't true, with overall network investment actually being reduced with the elimination of T-Mobile. While AT&T and the CWA are busy telling regulators the deal will increase network investment by $8 billion, out of the other side of their mouth AT&T has been telling investors the deal will reduce investment by $10 billion over 6 years. Based on historical averages T-Mobile would have invested $18 billion during that time frame, which means an overall reduction in investment.

Slashdot's article said there is likely a paralegal looking for work today. This happened at such a convenient time I wonder if they didn't just get a huge bonus from one of the many entities who oppose this merger.

No comments:

Related Posts with Thumbnails