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Comments on news posted 2011-03-21 13:46:32: After surprising everybody with their Sunday announcement that they'd be buying T-Mobile for $39 billion, AT&T today began the difficult process of trying to convince the public and regulators that eliminating one of the four major carriers -- while .. ..

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bigunk
Gort, Klattu Birada Nikto

join:2001-02-10
USA

1 recommendation

reply to corinthos

Re: :(

Jay Leno said it best on last night's show:

"Now they're going to corner the market on dropped calls!"


ryder9

join:2003-01-09
here
reply to old_wiz_60

Re: Lower prices? HAHAHAHAHHAHAHA

2 words........ Bill Daley


rolande
Certifiable
Premium,Mod
join:2002-05-24
Dallas, TX
kudos:6
Reviews:
·AT&T U-Verse
·ViaTalk

T-Mobile's exit strategy

Personally, I think that T-Mobile has been struggling internally for some time now to figure out if it was worth staying in the US market. They have not enjoyed high margin cash infusion that would allow them to pay for more rapid buildouts and platform upgrades. I think they were in a rock and a hard place financially and did not see a good forecast on the horizon given that situation. I think this whole deal was orchestrated for them to exit the market without looking like the bad guy to their customers and put a good chunk of cash in their pockets at the same time. Better to sell your assets while they are still worth something, rather than let the service implode on itself over the coming years.

So, we may all cry foul at at&t but I think that they are just taking advantage of a situation that was going to happen one way or another. I don't believe there was any hostile takeover going on here. T-Mobile offered them a gift, wrapped in a bright pink bow. (I do think it is quite ironic given the mud slinging ad campaigns of late) But, you can't blame at&t. They are only doing what they are supposed to do for their shareholders. Organic growth is not always enough to satisfy your investors.

Ultimately, the Federal Government could step in and decide that this deal is very bad for consumers and they could block it. This alternative outcome might actually be worse in the long run. T-Mobile may then be forced to attempt a spin-off or sell at a fire sale. Either way, the resulting entity would likely have nowhere near the financial leverage to sustain any real growth or competition against the incumbents. So, in the end, the net effect might be worse for the market than an at&t buyout. Having 2 mediocre competitors will do nothing to pull prices downward for the other 2.

Either way, I think that Verizon and Sprint stand to gain a large number of ex-T-Mobile subscribers. You can count me on that list.
--
Scott, CCIE #14618 Routing & Switching
»rolande.wordpress.com/

tmc8080

join:2004-04-24
Brooklyn, NY

lower prices?

you lie!


jap
Premium
join:2003-08-10
038xx
reply to rradina

Re: If my plan changes

said by rradina:

Verizon will now have to buy Sprint. Perhaps US Cellular?

USCell is my provider and I get exactly what I want: nationwide voice for $40, great rural coverage here in northern New England (they own nearly all the towers in central & western Maine and northern NH), no silly misleading fees, and THEY ANSWER THEIR PHONE (!) The CS staff does weird things like say "hello" and the beginning of the call and "goodbye" at the end and apparently feel disinclined to auto-spew canned marketing paragraphs. Surreal in an disorientingly human sort of way. Most customers seem to adjust though. I appreciate not losing a year off my lifespan by calling a TelCo.

So, if USCell merges with Verizon then VZ's customer service, billing and price plans will become similarly stellar. That's how mergers usually work: the best of both companies floats to the top in choreographed synergy.

jap
reply to Gbcue

Re: Its going happen no matter how many signatures you get

THAT is histerical! Thank you. Once again the court jesters distill brainiac shit storms into useful truth. Prescient that this, what, two?,three?,more? year old clip acquires value as time goes by. Curious which episode it was.


Alcohol
Premium
join:2003-05-26
Climax, MI
kudos:4
reply to drew

Re: Thrilled

You just made Gbcue See Profile shit his pants.

rradina

join:2000-08-08
Chesterfield, MO
reply to jap

Re: If my plan changes

said by jap:

said by rradina:

Verizon will now have to buy Sprint. Perhaps US Cellular?

So, if USCell merges with Verizon then VZ's customer service, billing and price plans will become similarly stellar. That's how mergers usually work: the best of both companies floats to the top in choreographed synergy.

I don't mean to sound like a jerk but there's really no other way to say this.... are you SERIOUS?

If Verizon was interested in US Cellular, they wouldn't "merge" with them. They would buy them. Typically whichever fish swallows is the organization that wins, even if the swallowed organization is better-managed.

Folks are very fearful of T-Mobile "merging" with AT&T and having the "magic" that only AT&T knows, infect their company. They fear it will lead to the end of what they perceive as value and quality in the service they receive from T-Mobile. AT&T's strategy has been exclusive devices locked in to overpriced plans, no 3G service outside major population centers and crappy "five bar" service.

Service here used to be decent but over the past few years it's degraded with ever-increasing smart device traffic. There are areas where with five bars, if you can start a call it takes 15 to 20 seconds (or more) for it to start ringing. And don't even think about data. When I leave work I try to check the traffic on the iPhone built-in map. I have two routes home. If clear, one is ~15 minutes and the other is ~25 minutes. The decision point is about five minutes from my office when I get on the interstate. I often cannot get the map to update before I have to make the decision. I leave anywhere from 2pm to 7pm but often around 4pm. It doesn't matter when I leave, if I don't get updated traffic on my corporate WiFi network before I leave the building, I just don't get it despite a five bar 3G signal.

I have repeatedly used the AT&T iPhone app to report problems but it's been this way for well over a year.

To be fair, there are also areas where 3-bar service is fantastic. Calls go through immediately and data speed can top 6Mbps down and 1.5+mbps up using Ookla's speed test app.

After years of "3G coverage" map fights with Verizon it's incredible that they have NOT spread high speed to rural areas. Despite being embarrassed by Verizon's map, not much has changed. They have added some smaller population centers here and there but there's no holistic upgrade of all their towers to handle 3G. I think their lock on the Apple devices has kept them going. I hope most iPhone users leave for Verizon. Perhaps AT&T's network will get better with less load! I'd leave but I'm stuck because AT&T is our corporate wireless partner.

Of course if they are allowed to swallow T-Mobile, AT&T promises 4G coverage everywhere. Who can trust statements like this and what enforceable penalty will be engaged if they don't do it? Will the FCC vote to censure AT&T the way Congress air spanks its members when they misbehave?


Alcohol
Premium
join:2003-05-26
Climax, MI
kudos:4
reply to LostInWoods

Re: So glad I just left for Verizon

said by LostInWoods:

My guess is that you wouldn't have that choice -- Verizon would swallow up Sprint in response.

The real question to me is whether they try to do so as a tactic to get the ATT/TMO deal scotched. This would be similar to Coca Cola buying Dr Pepper in response to Pepsi buying 7-Up in the mid 1980's. The FTC killed both deals as anti-competitive. This is similar, with a helluva lot more importance on the US economy than sugar-water. The question is whether the FTC still has a spine.

Verizon said they don't want Sprint.

Also, you should look up how much AT&T has paid (bribed) the government in the last 10 years.
--
I found the key to success but somebody changed the lock.


davegtestr

join:2001-11-07
Bothell, WA
reply to sparc

Re: t-mobile usa is not a threat to anything

As a Sprint customer, formerly AT&T iPhone 3G, I am glad too that Sprint did not buy the weak T-Mobile predominately GSM/3G GSM network. Our network is fast and will migrate to LTE it looks like in the next 2.5 years.


jap
Premium
join:2003-08-10
038xx
reply to rradina

Re: If my plan changes

Ohhh ouch. My second paragraph is pure sarcasm. I switched from sincere singing of praise for aspects of USCellular to an absurdist posit of how VZ swallowing USC would fundamentally alter VZ and make them angels. Of course it wouldn't: USC would be swallowed whole.