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AT&T, T-Mobile Plan B: Joint Venture
A Backup Plan to a Backup Plan
by Karl Bode Thursday 01-Dec-2011 tags: business · consumers · wireless
AT&T is working on several backup plans in case regulators reject their $39 billion acquisition of T-Mobile. One involves divesting up to 40% of T-Mobile assets to Leap Wireless, with AT&T thinking this would somehow address the negative competitive impact of the deal. But the Wall Street Journal says that AT&T is working on another option that could involve a joint venture -- instead of an outright acquisition. According to the Journal, AT&T and Deutsche Telekom have talked about a joint venture spectrum sharing deal as a back up plan to their back up plan:

These discussions aren't advanced and were described by the people as a plan the two companies have on the back burner. Still, the people added, AT&T and Deutsche Telekom are likely to take a closer look at a joint venture as AT&T's planned $39 billion purchase of T-Mobile USA faces mounting opposition...under a joint venture, the two companies could jointly use the T-Mobile spectrum that AT&T covets while Deutsche Telekom holds onto its T-Mobile customers.

The Journal also cites sources that say the DOJ isn't impressed by AT&T's offer to divest additional T-Mobile markets, because as we've discussed -- it does nothing to really address the deal's real problem: the anti-competitive impact of eliminating Sprint and weakening T-Mobile.

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Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

Joint Venture, Partnership, Merger - all the same result

This idea is just a merger by another name. But they may slip this past the DOJ as long as they maintain the fiction that AT&T isn't still calling all the shots in this partnership.
NWOhio

join:2011-10-25
Toledo, OH

Re: Joint Venture, Partnership, Merger - all the same result

the partnership is only for the network share deal. still 2 separate companies.

Tomek
Premium
join:2002-01-30
Valley Stream, NY

eliminating Sprint and weakening T-Mobile.

Eliminating sprint?
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Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

1 edit

Re: eliminating Sprint and weakening T-Mobile.

said by Tomek:

Eliminating sprint?

I think he got that backwards in a typo accident.
Edit: it has been corrected in the story above.

keyboards

join:2001-02-14
Doylestown, PA

Re: eliminating Sprint and weakening T-Mobile.

said by Romney2012:

said by Tomek:

Eliminating sprint?

I think he got that backwards in a typo accident.
Edit: it has been corrected in the story above.

Still says "eliminating Sprint and weakening T-Mobile". ?????????
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REMEMBER: Stupidity should be painful !!
openbox9

join:2004-01-26
Alexandria, VA
kudos:2
Maybe he's looking forward a few years?

t3ln3t

@sbcglobal.net

'other means'

by going this route ... at&t makes it unattractive for some other future suitor to even ponder a purchase of TMO. If this is the way it goes, I'd bet at&t will try to merge with TMO again, once the regulatory environment is a bit more friendly.
etaadmin

join:2002-01-17
Dallas, TX
kudos:1

Re: 'other means'

said by t3ln3t :

by going this route ... at&t makes it unattractive for some other future suitor to even ponder a purchase of TMO. If this is the way it goes, I'd bet at&t will try to merge with TMO again, once the regulatory environment is a bit more friendly.

A very cynic approach, 'regulatory environment' translation politicians in at&t's pocket. This is the problem not the solution.

kara

@comcast.net

at&t sucks

I don't care what they call it still blows, I getting away from anything at&t I am sick of them. Any company with this much power to buy off congress and anyone else should be disband like the ma bells of old

footballdude
Premium
join:2002-08-13
Imperial, MO

Re: at&t sucks

said by kara :

Any company with this much power to buy off congress and anyone else should be disband

No one has the power to buy off congress if we don't elect corrupt people. But when everyone goes to Washington because that's where the money is.........
NWOhio

join:2011-10-25
Toledo, OH
and you shop at Wal-Mart don't you? They do the same.
etaadmin

join:2002-01-17
Dallas, TX
kudos:1

How about making AT&T deliver back promises?

How about including in the 'new' deal making at&t deliver on past promises. Like this one »www.teletruth.org/docs/broadband···free.pdf or the one that said that franchise reform was going to be good for consumers and lower TV prices »www.techdirt.com/articles/201012···ed.shtml

The FCC should tell at&t start deploying fiber to your customers and when you reach 50% we'll talk about the T-Mobile merger, when you reach 97% we'll approve it.

Romney2012
Defeat Obama 2012-Chg we can believe in
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AT&T's Jim Cicconi dumps on FCC merger report

Now that the FCC has released their merger study, AT&T's Jim Cicconi attacks their report on the AT&T web site.

»mobilizeeverything.com/news/att-···f-report

We expected that the AT&T-T-Mobile transaction would receive careful, considered, and fair analysis. Unfortunately, the preliminary FCC Staff Analysis offers none of that. The document is so obviously one-sided that any fair-minded person reading it is left with the clear impression that it is an advocacy piece, and not a considered analysis. In our view, the report raises questions as to whether its authors were predisposed. The report cherry-picks facts to support its views, and ignores facts that don't......

We have summarized here only a portion of the infirmities we see in the FCC's report. We would encourage all observers to read the report itself. We believe that the utter absence of balance is clear, and demonstrates that the document lacks all credibility.

The report by AT&T goes in to great detail about what the FCC got wrong. Read the link above if you are interested in the AT&T position.
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The nine most terrifying words in the English language are, I'm from the government and I'm here to help.
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n2jtx

join:2001-01-13
Glen Head, NY
Reviews:
·Optimum Online

It Might Work

I could see this working IF they create a neutral third company that takes over both networks and sells back access at wholesale prices to both carriers (and perhaps other carriers that are interested). Otherwise, AT&T will takeover T-Mobile's spectrum and basically relegate T-Mobile customers to a small sliver of 2G service on 1900MHz.

I trust AT&T as far as I can throw a 50 pound rock and that is not very far. Any "joint venture" that gives AT&T a leg up over T-Mobile is basically a "merger" with T-Mobile the loser.
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crazy_idea

@charter.com

Take a page from Verizon's book

AT&T and T-Mobile should take a page from Verizon's book and do an unconscionable Reverse Morris Trust. Screw the taxpayers at the expense of Ma Bell.
Sammer

join:2005-12-22
Canonsburg, PA

Re: Take a page from Verizon's book

said by crazy_idea :

AT&T and T-Mobile should take a page from Verizon's book and do an unconscionable Reverse Morris Trust.

An unconscionable Reverse Morris Trust deal isn't possible because T-Mobile USA (the asset being sold) is much smaller than the potential buyer AT&T Mobility.
eakenn

join:2005-02-20
Apopka, FL

Everything Everywhere

I wonder if it'll be something like the joint venture T-Mobile UK and Orange have in the UK?

»everythingeverywhere.com/
BiggA

join:2005-11-23
EARTH
Reviews:
·Comcast

Merger should be allowed

It's net good. We have a symmetrical duopoly now, maybe an asymmetrical duopoly will be better. Sprint could be a player if they would get in the game. Their network is horrendous, they haven't killed iDen yet to reclaim the beachfront spectrum, and now they have more different bands and systems than anyone else. It's an amazing blunder that they have much more spectrum than anyone else, more tower sites, and yet they still have the worst network.

Chtucson

join:2001-01-13
Tucson, AZ

Re: Merger should be allowed

I Like my Tmobile Service Sprint cant even Come close to 5-8meg on 4G all for 49.99 a month up to 5gigs of data. Sprint unlimited for now but nobody can even do anything on there network unless you get Wimax that even a joke.

once AT&T takes over The service go down hill cause they won't keep good deals they just screw american way So i hope AT&T loses All deals they just bad Company my next company wont be verizon or sprint I just came from sprint to TMobile i just wont own Cell service i hated verizon to pricey and sprint same way charging 10 for Data or 4G whatever u want to call it is a rip off when nobody even get 4G.

Tmobile has a good thing going why give it away to another company if anything leap wireless should take over so Cricket can be put on the map if CEO dont want Tmobile anymore.

Chtucon

@cox.net
I Like my Tmobile Service Sprint cant even Come close to 5-8meg on 4G all for 49.99 a month up to 5gigs of data. Sprint unlimited for now but nobody can even do anything on there network unless you get Wimax that even a joke.

once AT&T takes over The service go down hill cause they won't keep good deals they just screw american way So i hope AT&T loses All deals they just bad Company my next company wont be verizon or sprint I just came from sprint to TMobile i just wont own Cell service i hated verizon to pricey and sprint same way charging 10 for Data or 4G whatever u want to call it is a rip off when nobody even get 4G.

Tmobile has a good thing going why give it away to another company if anything leap wireless should take over so Cricket can be put on the map if CEO dont want Tmobile anymore.
BiggA

join:2005-11-23
EARTH
People who want fast service and are too cheap to pay for Verizon 4G LTE is a really, really small niche. Most people who want good service are willing to pay for it, and are willing to pay for it to work more than 5 feet off the highway.

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