Leaked AT&T Letter Damages Case For T-Mobile Merger

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

[Anonymous Coward]

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...

[milbournosphere]

...and this merger won't be good for me. I went to my local public dialog forum here in San Diego, and found quite a few others like me. Yet, we weren't able to talk because AT&T had lined up minority group after minority group after interest group after volunteer group talking about how "good AT&T is for the community." I shit you not, one lady even came up and spoke for her whole two minutes about how her pregnant 14-year old daughter wouldn't be able to function without this merger.

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

[quarterbuck]

The story pretty much says the same thing.
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.