How Even a Failed AT&T/T-Mobile Deal Hurts Rivals 51
An anonymous reader writes "The attempted merger between AT&T and T-Mobile has fallen on hard times amid antitrust concerns, but there's a potential silver lining for T-Mobile — one that would give them a boost over competitors anyway. Reuters reports that T-Mobile USA would be entitled to a hefty breakup fee including $3 billion in cash as well as spectrum and roaming agreements. 'In a research note, Moody's said that could also lead to a network sharing deal between the two companies, reasoning that it "would make sense given the spectrum that AT&T will have to cede to T-Mobile and the 3G roaming agreement between the two." That would make life especially hard for No. 3 U.S. carrier Sprint, which has been one of the most vocal opponents of the AT&T/T-Mobile deal, going so far as to file a lawsuit. ... Smaller rivals such as MetroPCS and Leap Wireless may be affected even more because T-Mobile is eyeing similar customer segments.'"
Re:Deutsche Telekom still doesn't want T-Mobile (Score:4, Informative)
Re:Deutsche Telekom still doesn't want T-Mobile (Score:5, Informative)
Good points. Plus, the article mentions that T-Mobile will get $3 billion in cash. That's only partially true. DT will get the cash. My guess is T-Mobile will see very little, if any of that cash.
Deutsche Telekom has already stated that it will not be investing any of that money in T-Mobile.
Re:Deutsche Telekom still doesn't want T-Mobile (Score:5, Informative)
its because of IP concerns since to setup the merger an English Long {redacted}Ton of passwords protocols and "stuff" had to be handed over to AT&T.
The funds and such are paying for all of that or they could have
1 Propose a Merger
2 Get all the company secrets
3 Fail the merger
4 PROFIT!!
5 crater the victim company
The issue isn't how AT&T's rivals will be affe (Score:3, Informative)
The issue is how customers, particularly consumers, would be affected if the deal, or anything like it, were approved.
We've already seen this movie many times, in the telecom sector and elsewhere. Industry consolidation means rates and fees for consumers go up. Way up. While service and available choices get worse. Much worse. We already have it now but the proposed deal would make things even worse. Oligopoly means providers don't care and don't have to care. Meanwhile, their shills in Congress (including the entire Republican Party leadership, as well as many Democrats) keep talking up how consolidation is essential to enable American companies to compete in the global economy. What horseshit. What ridiculous self-serving horseshit.
Meanwhile, the good ol' boy senior management team makes off like bandits [forbes.com]:
Randall L. Stephenson
Chairman of the Board, Chief Executive Officer and President
AT&T, Inc.
Dallas , TX
Compensation for 2010
Salary $1,533,333.00
Bonus $0.00
Restricted stock awards $12,749,977.00
All other compensation $417,410.00
Option awards $ $494,731.00
Non-equity incentive plan compensation $5,050,000.00
Change in pension value and nonqualified deferred compensation earnings $7,096,177.00
Total Compensation $27,341,628.00