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AT&T Enlists MetroPCS's Help to Salvage Deal
Proposes Subscriber, Spectrum Deal Worth $4 Billion
by Karl Bode 04:45PM Friday Oct 21 2011
Despite a legal blockade by the DOJ and criticism over rather-obnoxious lobbying efforts, AT&T continues to try and salvage their planned $39 billion acquisition. As it stands, it remains likely that the deal will get done, but AT&T will likely have to divest a significant amount of their markets to smaller carriers to create at least the vague illusion of wireless competition. According to a new report by Bloomberg, MetroPCS is the most likely recipient of these gifts from the regulatory gods. Leakers (possibly from AT&T) insist a deal currently being discussed would involve offloading around $4 billion in spectrum and subscribers to MetroPCS. MetroPCS executives are on the record stating that unlike Sprint they like the deal, because it immediately makes them the nation's fourth largest carrier (even if there's a pretty huge drop off after number two).

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kataan
RIP my love.
Premium
join:2003-04-22
Greenacres, WA

The Empire at its greatest!

Now witness the firepower of this fully ARMED and OPERATIONAL Telecom station!

lakerfan82

join:2009-01-30
Corona, CA

Tmobile to Metro? No Thanks...

I'm sure all those Tmobile customers forced onto MetroPCS will be thrilled...

michieru
Premium
join:2009-07-25
Miami, FL
Reviews:
·Comcast Business..

Re: Tmobile to Metro? No Thanks...

I really like this, this will give metropcs the spectrum they need to deploy in more markets and fix that spectrum deficiency they been having. I don't think they might be ready to handle the mass amount of customers if this does happen but everyone has growing pains.

BUCKEYECOM

@buckeyecom.net

Re: Tmobile to Metro? No Thanks...

why not? they can keep the same TMO call centers since those centers are the ones that know how the TMO GSM network operate. Would be pointless to try and merge them now into CDMA- would only make sense to merge the systems later in a new network.

michieru
Premium
join:2009-07-25
Miami, FL
Reviews:
·Comcast Business..

Re: Tmobile to Metro? No Thanks...

Well if they decide to do that, but with any merger people are going to lose jobs because those that get cross trained in cdma and gsm will eliminate the need for just specifics and cut out the excess.

When Sprint acquired Nextel this was done but after calling maybe 8 months after that I started getting transferred over to a sprint representative who did both and they had issues with the system and so forth. So customer service will suffer, to what extend is the question.

PapaMidnight

join:2009-01-13
Baltimore, MD
said by lakerfan82:

I'm sure all those Tmobile customers forced onto MetroPCS will be thrilled...

Despite Sprint imposing caps, I'll be a scruffy-looking nerf herder before I go to MetroPCS.

Snakeoil
Ignore Button. The coward's feature.
Premium
join:2000-08-05
Mentor, OH
kudos:1

How much will AT&T spend to get T-Mo

I wonder how much all this wheeling and dealing is costing AT&T on top of the buy out of T-Mo.

I'm surprised the investors haven't started crying about it as of yet.
--
Is a person a failure for doing nothing? Or is he a failure for trying, and not succeeding at what he is attempting to do? What did you fail at today?.
openbox9
Premium
join:2004-01-26
Germany
kudos:2

Re: How much will AT&T spend to get T-Mo

Crying about what? Eliminating competition and growing assets all the while potentially raking in several billion $? So far investors are fairly content.

Snakeoil
Ignore Button. The coward's feature.
Premium
join:2000-08-05
Mentor, OH
kudos:1

Re: How much will AT&T spend to get T-Mo

All the spin ads they have been rolling out, all the extra lobbying, has to add up to a pretty penny. I for one will not be an AT&T customer.

Grimace

@rr.com

Proposed Condition for Merger

AT&T should only be required to meet one condition:

The spectrum must not be sold direct to end users. Meaning that it may only be sold at wholesale to unrelated entities that must actually COMPETE for subscribers.

carpetshark3
Premium
join:2004-02-12
Idledale, CO

Re: Proposed Condition for Merger

Metro PCS is CDMA. TMO is GSM. Would be the same problem as Sprint acquiring TMO customers. I prefer GSM.

Grimace

@rr.com

Re: Proposed Condition for Merger

First, MetroPCS has nothing to do with my proposal. This article discusses a different proposal which would include divesting assets that would benefit smaller carriers. I'm talking about a requirement for a wholesale ONLY network, totally separate. Meaning that AT&T will not have any end-users as customers.

Second, both T-Mo and AT&T are GSM networks.

Third, if there are problems with 3G compatibility, then the Justice Dept. could negotiate that this requirement would apply only to the next generation and future networks, including the 4G LTE network that just began rolling out.

n2jtx

join:2001-01-13
Glen Head, NY

My Wish...

@ATTFAIL

I want to see this proposed merger go down in flames. The U.S. needs two nationwide GSM carriers.
--
I support the right to keep and arm bears.

RoKmAn

join:2000-09-09
East Elmhurst, NY

Re: My Wish...

Your wish is legitimate considering the mass deployment of VoLTE is eons away despite all major carriers choosing to adopt LTE ( the result of the evolution of GSM) anyway. Also, given the insane amount of differing frequencies used with LTE by the different carriers, roaming and other convergence benefits remain distant.

cork1958
Cork
Premium
join:2000-02-26
Ditto here if just for the fact I hate companies that are to big for their own britches!!

I can't believe the DOJ and FCC can be this blind and ignorant!
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»www.mozilla.org/projects/seamonkey/
talz13

join:2006-03-15
Avon, OH

Re: My Wish...

said by cork1958:

Ditto here if just for the fact I hate companies that are to big for their own britches!!

I can't believe the DOJ and FCC can be this blind and ignorant!

I thought the DOJ was fighting this?

Rob
In Deo speramus.
Premium
join:2001-08-25
Kendall, FL
kudos:2
Reviews:
·Comcast

Put T-Mobile in an Escrow..

Set some very strict and tough requirements (i.e. AT&T must build out their 3G network to at least 90% of their network, roll out U-Verse to new markets, etc). Keep T-Mobile in escrow until they have met the requirements.
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cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:7

Re: Put T-Mobile in an Escrow..

said by Rob:

Set some very strict and tough requirements (i.e. AT&T must build out their 3G network to at least 90% of their network, roll out U-Verse to new markets, etc). Keep T-Mobile in escrow until they have met the requirements.

Yeah, because putting a company as large as T-Mobile "in escrow" is going to work. AT&T can build out their network to 90% now for a fraction of what they are paying for TMobile. UVerse and wireless are completely different and I don't see conditions for one being put on the other. Verizon Wireless was never in the picture when Frontier had their transaction.

If TMo were to go into escrow it would die. AT&T wins regardless if they hold up their end of the deal or not. At that is what AT&T wants.

Rob
In Deo speramus.
Premium
join:2001-08-25
Kendall, FL
kudos:2

Re: Put T-Mobile in an Escrow..

When I meant escrow, I meant pending sale.

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:7

Re: Put T-Mobile in an Escrow..

said by Rob:

When I meant escrow, I meant pending sale.

You don't put $39b transactions in "Pending Sale" while they operate any length of time. Either DT owns them, or AT&T owns them, but not state of limbo. Putting them pending just ends up hurting the consumer as they have no idea what's happening to them.

Rob
In Deo speramus.
Premium
join:2001-08-25
Kendall, FL
kudos:2
Reviews:
·Comcast

Re: Put T-Mobile in an Escrow..

said by cdru:

said by Rob:

When I meant escrow, I meant pending sale.

You don't put $39b transactions in "Pending Sale" while they operate any length of time. Either DT owns them, or AT&T owns them, but not state of limbo. Putting them pending just ends up hurting the consumer as they have no idea what's happening to them.

Uhh they have no idea what's happening to them now. Nothing changes. Time to make demands for corporations to honor before we approve mergers. First they follow through, then we push the deal through. None of this "We promise we'll do x and y".
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CheckSite.us | YourIP.us | Reverseip.us
jfmezei
Premium
join:2007-01-03
Pointe-Claire, QC
kudos:23

AT&T should butt out

In a way, the goverment should tell AT&T "No way José" and let MetrocPCS bid on T-Mobile if it wants it. Since MetroPCS is going LTE, then T-Mobile's network may not be so incompatible after all.

If Sprint had a good track record of mergers, it too would e OK to buy T-Mobile. But I doubt they could succesfully integrate T-Mobile into Sprint.
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS

they keep hiding THE clip..

apparently Lucas doesn't want this clip (destroying the deathstar) to stay on youtube for very long... O-well...

»www.youtube.com/watch?v=vmRfj2dF7gM


You don't compromise with Evil..
Don't know why they keep floating these paltry on the cheap ideas to keep the deal alive.. it's progressing to the terminal stage of death (a trial). $4 Billion of spectrum and customers does not equal the entire assets of Cingular AND BellSouth. No deal.

morbo
Complete Your Transaction

join:2002-01-22
00000

Metro PCS vs T-Mobile?

Metro PCS vs T-Mobile? Let's just say that I hate calling my friend on Metro PCS because coverage and dropped calls is so bad. It wasn't bad when he was on T-Mobile.
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS

Re: Metro PCS vs T-Mobile?

said by morbo:

Metro PCS vs T-Mobile? Let's just say that I hate calling my friend on Metro PCS because coverage and dropped calls is so bad. It wasn't bad when he was on T-Mobile.

Metro PCS network mirrors that of sprint in coverage maps (which is to say cherry picked major metro cities), but with about 50% the amount of towers and 25% of 4g network coverage. All carriers are working to expand their networks to make them more seamless, but at varying degress of commitment to that goal (and financial ability to finance said buildouts). If universal voice, text, and data are most important to have everywhere you go.. there is a defacto duonpoly of AT&T and Verizon (and their respective MVNOs). Try to get cheaper service with another provider and you might be shut out when traveling with limited or notexistent service for roaming.