Opposition mounts to AT&T’s attempt to takeover T-Mobile USA

27 July 2011 |


A fresh wave of opposition has been mounted against AT&T’s proposed takeover of T-Mobile USA, following the company’s submission of an engineering and economic analysis to the US Federal Communications (FCC) intended to justify the move.

The Sprint SVP of government affairs Vonya McCann has branded AT&T’s submission as a “last-ditch attempt to distract regulators, politicians and consumers from the fact that it has failed to provide any evidence that its proposed takeover of T-Mobile yields meaningful benefits”.

Reuters also reported that US senator Al Franken has called for federal regulators to reject AT&T's proposed takeover of T-Mobile USA, saying it could result in reduced competition, higher consumer prices and the loss of thousands of jobs.

There have also been reports that a small group of AT&T customers have hired a law firm to oppose the move after expressing concerns it could lead to a poorer level of service and higher prices.

AT&T first announced its $39 billion bid to acquire T-Mobile USA in March 2011. On 21st April, AT&T filed its public interest statement with the FCC, but removed all information that was considered to give a competitive advantage. Sprint subsequently requested to see the full document with all such information included (click here).

On Monday, AT&T filed its latest analysis with the FCC which highlighted the impact of the merger on network capacity in 15 markets. The company believes that the takeover could significantly relieve capacity constraints and lead to a higher quality of service.

If the move were to go ahead, it would undoubtedly alter the dynamics of the US mobile market, giving AT&T a 43% market share with over 129 million subscribers.

“The facts do not justify allowing that to happen, and we believe the ongoing investigations by the Department of Justice, the Federal Communications Commission and 11 state attorneys general and various state regulatory commissions will reach the same conclusions," said McCann.

For a full in-depth analysis of the drama and impact surrounding AT&T’s proposed takeover of T-Mobile USA, click here.