AT&T – T-Mobile LTE Dreams Trampled with Leaked Letter

In AT&T’s redacted letter stating that their merger with T-Mobile would lead to LTE being available to rural parts of America, the merger doesn’t seem so bad after all.  Right, if you don’t consider the other parts of the redacted letter.  AT&T may just have blown their chance into getting the merger ironed out.

The Federal Communications Commission has been scrutinizing AT&T’s intent for the T-Mobile merger focusing more on the angle that they are pushing for the merger so that AT&T will have a monopoly over communications.

Wireless Week posted the redacted AT&T letter, but was unable to focus on the important aspects of the letter, and DailyTech took this opportunity to inform the public of what the redacted note was all about.  DailyTech presented the following key points to AT&T’s argument as to why the merger should be allowed, that actually makes one think that it shouldn’t push through, and is in fact something that investors should take into serious consideration.

  • AT&T sent 1.2 million files to the US Department of Justice to ‘help’ with the FCC investigation – how could a million files help make the investigation on the merger faster?  Stupid, right?  They just made a move to delay the merger even more.
  • AT&T doesn’t have anything to support their appeal for the merger regarding its benefits– How can you not justify something that you really want and that would really benefit your company especially in the long run?
  • AT&T stated that they have no clear plans for T-Mobile that it won’t be used for their expansion – In the first place, why would you merge with another company if you don’t know how it would even help your own company.  It’s more believable if they said that T-Mobile would help in bringing LTE to rural parts of the US.
  • AT&T’s national and local management don’t communicate – What kind of company doesn’t have control over their branches?  How can they not have anything to say how their regional branches should function?
  • AT&T is going to spend $39 billion for the merger that would only cost $3.9 billion to upgrade their infrastructure. – In this statement, AT&T is implying that the merger would benefit them with their LTE plan which contradicts with their statement that they have no plans as to how T-Mobile will fall into their company.  Their arguments are just going around in circles without making any clear points.
  • AT&T-T-Mobile merger will increase job availability while cost-cutting on expansion – This one is a bit hard to swallow.  Their goal is to make their infrastructure upgrade cost less while creating more job opportunities.  I think this one just boils down to layoffs and minimal employments.

“While certain merger opponents refuse to acknowledge the clear benefits of AT&T’s LTE buildout commitment, they have never operated a network or run a business and they offer nothing but baseless speculation that conveniently ignores the facts,” wrote Margaret Boles, a spokeswoman for AT&T.

“The bottom line is that without this merger, AT&T could not make this expanded LTE commitment. Federal regulators have before them the facts that demonstrate that this merger will unleash billions of dollars in badly needed investment, creating many thousands of well-paying jobs, both of which are vitally needed given our weakened economy.”

These arguments from AT&T may just seal the fate of the merger.  And as for their current and future investors, they should really think twice.  Not being able to back-up your appeal and not knowing how T-Mobile fits in–this just spells trouble.  With their redacted statement and their spokeswoman insisting that the merger is the only way that the LTE project will be possible, they are just proving that they have a few communication problems of their own.