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AT&T Accidentally Tells Truth, Shoots Self in Foot
Free Press and other opponents of the AT&T–T-Mobile merger had reason to cheer last week when a damning document AT&T filed with the FCC was accidentally posted on a public site. The partially redacted letter, which appeared on the FCC website for several hours on Thursday before it was yanked down, punctures a hole in AT&T’s central pro-merger argument — namely that only purchasing T-Mobile would allow it to expand its 4G LTE wireless data network to 97 percent of the population.
Turns out AT&T had considered expanding its network on its own but balked at the $3.8 billion price tag. “AT&T senior management concluded that, unless AT&T could find a way to expand its LTE footprint on a significantly more cost-effective basis, an LTE deployment to 80 percent of the U.S. population was the most that could be justified,” AT&T counsel Richard Rosen wrote in the letter. So AT&T concluded that it made better strategic sense to pony up $39 billion to purchase T-Mobile.
The logic makes perfect sense if your ultimate aim is to effectively bludgeon wireless competition. If the deal goes through AT&T’s primary rival, Verizon, will fall a distant second to AT&T in the wireless arena, and collectively the two will control 80 percent of that market. Can AT&T still pretend it had nobler intentions?
Yes, it can.
“There is no real news here,” said AT&T spokeswoman Margaret Boles in a statement released in the wake of the leak. “The confidential information in the latest letter is fully consistent with AT&T’s prior filings. It demonstrates the significance of our commitment to build out 4G LTE mobile broadband to 97 percent of the population following our merger with T-Mobile. Without this merger, AT&T could not make this expanded commitment.”
Yes, it could, Margaret. It just doesn’t want to. AT&T has long pinched pennies when it comes to providing adequate and comprehensive wireless service but has no problem unlocking its bank account if the end result is total market domination.
As Free Press has reported since the merger’s announcement, it’s not just wireless carriers who will get squashed if the merger goes through. As many as 20,000 workers — likely drawn from T-Mobile’s workforce — stand to get the boot as a result of the deal. And let’s not forget ordinary consumers. Less choice translates into a power dynamic in which AT&T — and Verizon — can dictate whatever rates or terms it wishes for customers who don’t have other options to turn to. Unless, that is, you count hooking up two Dixie cups to string and bellowing communications to your neighbor.
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13 Comments so far
Show AllFor long distance and mobile service, progressives may wish to think about signing up with Credo as they, unlike AT & T and Verizon, believe in donating and assisting with progressive causes.
Only problem is that Credo uses Sprint's network. Sprint ain't exactly nice guys either, and their network is really crappy. I know; the minute I enter my office building, signal strength drops to near-zero, and when I'm out on the highway -- the reason I got the cell phone in the first place was for emergency calls -- I often find there's no signal.
Best solution is always and unchanged: Live with less. I'll probably be ditching the cell phone; just another gadget that's more trouble than it's worth.
Sprint has been after me via collection agencies for nearly four years for $60 for 3G service I was assured would work where I live. The service did not work, I returned all of their equipment within the 30-day trial period, I never downloaded one iota of information via their service. I even bought a $275 signal booster/rebroadcaster that allowed me to use my cell phone in the closet surrounded by heavily filled boxes, but their service NEVER WORKED.
Of course the collection agencies by now must realize they will never collect a dime from me, but that doesn't hurt Sprint since they farmed out their dirty work.
Another problem with Credo as a result of their piggy-backing on Sprint's network is said network's transmission standard: TDMA. It only functions in Canada & the USA, so if you travel and like to have your phone with you, you're SOL.
AT & T, on the other hand, offers the worldwide transmission standard, GSM. I have to travel beyond the USA & Canada, so my 'choice' is essentially made for me much to my distaste.
Also, if I'm correct about Credo being the new incarnation of Working Assets, it's the most heartless, bullying corporation I've ever dealt with. I paid a bill and 3 weeks later they cut off my service... on Christmas Day.... saying I should have allowed for at least a month for them to process the bill. I'll NEVER deal with them again!
I subscribed to Working Assets some years back, and was very disappointed, and infuriated by their crude "service". They are supposed to alert you when your subscription period was running out, else they'll keep whatever money you have left in your account...no reimbursement or restoration of your account. Don't remember clearly, but I think it was something like 3-month periods, in which you needed to use their service at least once, to avoid being cut off. But they would alert you to the end of each period via e-mail, about a week before the end date...so, no worries, right?
Well, I live on a low income, and rarely make long distance calls, so it is not unusual for me that more than 3 months pass before I make my next LD call. Working Assets never informed me of an imminent cut-off date, so by the time I found out I was overdue, almost two weeks had passed. When I called their offices, the woman I spoke with was quite rude, abrupt, and condescending. She insisted they /did/ send me a warning, and that it was all my fault. I knew full well that was a lie, so I asked if they could resume my service, considering I'm all paid up anyway. She flatly refused, and disconnected me.
I don't see how any truly progressive organization could advertise such a rotten company. It only makes me question the sincerity of such an organization, making me that much more aware of the phoniness of almost everything in our so-called democratic culture. Especially when said organization constantly badgers me for donations almost every single day!
Common Dreams or Common Schemes? You decide.
A long time ago, in a land far, far away, the good people of that land and their leaders realized that the energy and communications infrastructure was too critical to the health of their land to be left to the the dubious scruples of their free enterprise merchants. A quasi-public system was created that helped to make their land the most prosperous and accessible ever seen.
But over time their very success blinded the people to their common cause and the leaders were persuaded with gold and silver that those dubious scruples were actually virtues and that in keeping with the highest court of their land, speech is actually money, so to communicate over the eather with their families they must pay whatever the market would bear.
One day an old man, desperate to see his son before he died snuck onto the privatized highway, onced owned in those earlier days by him and the rest of the people. Though he tried to remain unnoticed, one of his ragged old tires went flat and as he was calling his son on his parasitic trac phone his minutes ran out. Along came the highway lease police, resplendent in their hardened assault vehicle and martial unifroms, and ascertaining that the old man did not have the money for the toll, let alone the penalty for illegaly driving on their masters' road, impounded his battered old car, squashed it, and threw the old man in debtor's prison.
When the official media interviewed the son he smiled meakly and nervously while admitting that his father should have known better than to use those things he could not afford, like telephones and highways (though that part was officially edited out) and that his father's criminal behaviour could not be tolerated.
Never-the-less the son was followed for many weeks to make quite certain that he was not a threat to society.
Welcome to the Brave New World America. Can't happen here? IT IS HAPPENING HERE.
So wait a second here, let's see if I've got this right.
AT&T claims it wants to expand its LTE footprint, and undoubtedly it does, but that would cost $3.8 billion, which it says is too much money. But spending over ten times that amount, $39 billion, to accomplish this goal isn't too much money.
How anyone can read this and not understand what AT&T is really buying here is beyond me.
ATT gets Tmobile customers, assets, etc., for the $39B, and does not need to spend $3.8B on LTE expansion.
Exactly. What AT&T is really buying has nothing at all to do with LTE expansion, though surely that's a swell benefit for it, but everything to do with market domination.
Anyone like to bet this merger will go through? I guaran-freaking-tee it. Monopoly, schnopoly. Profits, Profits, PROFITS baby! Our "representatives" in the federal government know damn well who butters their bread, and they are in office for one purpose only: to increase their corporate masters' profits. PERIOD. You're damn right this merger will go through, this new evidence notwithstanding.
Count on it.
I was told yesterday that I live in an area of very poor signal quality and I should plan to purchase a repeater antenna if I hope to have any wireless service here. This after having enjoyed strong unflappable 3G service never varying more than 1 or 2 dBm + or - at this exact location and with almost a year left on my two year contract. Unfortunately lightening seems to have damaged their transmitting equipment and it seems there are no plans for repairs to be made.....although my obligation for monthly charges remains intact. I wonder if this is their ploy nation wide to get customers to encourage the monopolization of the wireless industry in hopes of getting their service maintained? Or do wireless carriers just do this routinely?....I had a similar experience with another company a few years ago after a number of years of great service with them at this location. I'm for getting Dixie cups and twine. They will work as well as what I've experienced and cost a lot less.
I wish AT&T would get their existing network sorted instead.