Leaked AT&T Letter Damages Case For T-Mobile Merger 201
An anonymous reader writes "Yesterday a partially-redacted document briefly appeared on the FCC website, accidentally posted by a law firm working for AT&T on the $39 billion T-Mobile deal (somewhere there's a paralegal looking for work today). While AT&T engaged in damage control, telling reporters that the document contained no new information, a review of the document shows that's simply not true. Data in the letter undermines AT&T's primary justification for the massive deal, while highlighting how AT&T is willing to pay a huge premium simply to reduce competition and keep T-Mobile out of Sprint's hands."
US cell system (Score:5, Interesting)
I was a recent visitor to the USA and was astonished at the 3rd world nature of its cell system. I had never imagined it was so bad, before visiting. Why USAians don't demand better regulation is a mystery to me. They seem intent on defending the very thing that makes their lives miserable compared with most developed nations.
This was also the impression I had of its subway system. I've ridden subways in Moscow, Tokyo, London, and other major cities. All were clean, safe, and the sort of system a developed nation can be proud of. The subways in the US smelled of urine (!!), were infested by RATS (!!), covered with trash, and had the feel of a thing you'd only want to use if you do not value your personal safety. This was my first exposure, and really changed the view I used to have of the USA as an advanced nation. It really is on par with some very poor and undeveloped countries in terms of civic infrastructure.
I'm a TMo Customer... (Score:5, Interesting)
The sad thing? Almost every person who stood up disclosed that they had received grants, money or deals from AT&T. Two hours later, I walked of the forum disgusted. I've been an ATT customer before, and I don't want to be again, and people must agree with me, because 50k people jumped ship from T-Mobile last quarter.
I'm bummed because T-Mobile has historically been a great company to work with. Any company that rings you up to make you aware of and retroactively pay for an overcharge is okay in my book. For some reason, I couldn't see ATT doing that kind of thing. Oh well, at least I'll be able to jump ship to Sprint when ATT officially acquires T-Mobile. I don't trust the FCC or the FTC to lift a finger to stop this merger.
Re:Deal will still probably go through (Score:4, Interesting)
AT&T has said that it will cost them $39 Billion to buy TMobile. It has also claimed to investors that it will save them $10Billion.
The justification is that it will enlarge Wireless coverage in USA.
The leak now claims that the expanded network coverage will cost only $3.8 Billion http://www.wirelessweek.com/news/2011/08/unredacted-ATT-filing-shows-high-price-tag/ [wirelessweek.com]
So AT&T Pays $39 Billion, saves $3.8 Bilion in network costs and $6.2 Billion in non-network costs (say closing and selling stores/laying off duplicated jobs). Assume that Sprint is worth the same as TMobile intrinscially - which is approx. $10B. The remaining $19 Billion premium paid must then be the cost of eliminating competition or the cost of keeping sprint from expanding.