Hasta La Gadget!

FCC Chairman Julius Genachowski has mail. It’s only a page and a paragraph long, but the letter he’s received this week has much gravitas attached to it, coming as it does from a select group of the tech industry’s biggest companies, all of whom are lending their support to AT&T’s proposed acquisition of T-Mobile. Of the eight new proponents of the deal, Microsoft, Facebook and Yahoo form a sub-group of software / web content distributors, whereas Qualcomm, RIM, Avaya, Brocade, and Oracle will have been motivated to speak up because they see the takeover as expanding opportunities to sell their mobile and networking hardware. The entire octet agrees that the melding of AT&T and T-Mobile’s networks into one is a requisite move for broadening mobile broadband availability in the US and for keeping the country competitive with the rest of the world. In their words, “an increasingly robust and efficient wireless network is part of a virtuous innovation cycle.” Virtuous for them, perhaps, but what about consumers faced with an increasingly binary choice of mobile carrier? Who shall protect their virtue?

Microsoft, Facebook, RIM, and others write to the FCC in support of AT&T-Mobile merger originally appeared on Engadget on Thu, 09 Jun 2011 00:19:00 EDT. Please see our terms for use of feeds.

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Over the course of the next year, AT&T and its opponents will be in the ring, duking it out in a war of words in attempt to convince the government that a $39 billion takeover of T-Mobile by AT&T should or should not take place. Consumers have the most to win or lose here, yet we are resigned to watching from the sidelines as both sides lob countless facts and stats at each other like volleys in a tennis match.

If you look at the merger process as a stairway to climb up, AT&T is still near the very bottom. Every rung will be full of intense scrutiny as it is: if the two companies are allowed to merge, the national GSM market becomes a monopoly, and the wireless industry as a whole would shift to only three national players plus a handful of less-influential regional carriers. The carrier’s going to blow as much as $6 billion if the merger is not approved — almost enough to buy Skype — it can’t just expect to put up some feel-good facts and stats to win the hearts of the decision-makers.

AT&T has to be absolutely sure it’ll come out victorious in the war, else it risks losing the trust (and money) of its shareholders. But to accomplish such a feat, it has to be on top of its game. There was no better time to show off what it’s made of than last week’s Senate Judiciary Committee hearing conducted by the Subcommittee on Antitrust, Competition Policy and Consumer Rights. When the Committee entitles a hearing “Is Humpty Dumpty Being Put Back Together Again?,” it’s either exercising a sense of humor or a preconceived notion of the merger due to the implication that Ma Bell is simply reforming. CEO Randall Stephenson appeared as a sacrificial lamb, going before Congress and his opponents to explain his side of the story, answer hardball questions, and endure a hard-hitting round of criticism. Continue reading as we take you topic by topic and examine what he — and his opponents — had to say about the merger.

Continue reading The AT&T / T-Mobile senate hearing: deciphering the war of words

The AT&T / T-Mobile senate hearing: deciphering the war of words originally appeared on Engadget on Wed, 18 May 2011 12:00:00 EDT. Please see our terms for use of feeds.

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AT&T has many strategies for trying to convince the US government to let it buy T-Mobile, but the one it emphasized was this — it would attempt to make remaining carriers Verizon, Sprint and even a handful of rural entities look like “intense competition.” Well, it seems that tack hasn’t quite had the impact that the board of directors was hoping for, because it just delivered a gigantic new document to the FCC, which portrays itself as the victim of its own success. AT&T says it had to deliver 8,000 times percent more mobile data in 2010 than it did three years prior — over 10 petabytes per month these days — and foresees that it will deliver that same amount of data “in just the first five to seven weeks of 2015.”

Meanwhile, T-Mobile is the knight in shining magenta armor to save AT&T from those “severe capacity constraints,” but since AT&T can’t let regulators think that T-Mobile’s departure from the arena will result in less competition, Ma Bell simultaneously bashes its prospective conquest for having a “diminished market role” in the telecom industry and “no clear path to deploy LTE” — even as it says that acquiring T-Mobile would result in the means to spread speedy Long Term Evolution across 97.3 percent of the general population. In case you’re keeping track, that’s up from the 95 percent the company last prognosticated. The seeming contradictions here are certainly amusing, but we have to admit the promised giant LTE network tempts us quite a bit. But is it worth building a GSM monopoly to do it? Envision the repercussions for yourself — both good and ill — by studying the following links.

Update: Fixed a few math errors — AT&T processed over 10 petabytes per month (not year) in 2010, and that was 8,000 percent (not times) the amount of mobile data it carried in 2007. For comparison’s sake, the entirety of YouTube was said to have streamed 31 petabytes per month in 2008, and Hulu did 17 petabytes per month over the same time period, according to a Cisco study.

Continue reading AT&T tells FCC just how important T-Mobile is, in 381-page redacted document

AT&T tells FCC just how important T-Mobile is, in 381-page redacted document originally appeared on Engadget on Thu, 21 Apr 2011 21:56:00 EDT. Please see our terms for use of feeds.

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Yes, you read that right. Sprint is actually going out on a limb and officially opposing AT&T’s proposed acquisition of T-Mobile USA. Apparently, it thinks that the transaction would “reduce competition and harm consumers” if it’s allowed to go through, and it’s vowing to “fight this attempt by AT&T to undo the progress of the past 25 years and create a new Ma Bell duopoly.” It further goes on to note that the combined company would be almost three times the size of Sprint in terms of wireless revenue, and that it and Verizon would “overwhelmingly dominate” the US wireless industry and have “unprecedented control” over the post-paid market. Full press release is after the break.

Continue reading Shocker! Sprint officially opposes AT&T’s proposed acquisition of T-Mobile

Shocker! Sprint officially opposes AT&T’s proposed acquisition of T-Mobile originally appeared on Engadget on Mon, 28 Mar 2011 16:36:00 EDT. Please see our terms for use of feeds.

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Well, isn’t this just something. It only took Sprint a matter of hours (on a Sunday evening, no less) to push out a detailed list of gripes concerning the proposed AT&T / T-Mobile USA tie-up, but Verizon Wireless won’t even be wasting its time. According to an interview with Reuters ahead of CTIA, VZW CEO Daniel Mead confessed that his company wouldn’t be lobbying the FCC or any other entity to stop the inevitable, noting that “anything can go through if you make enough concessions.” That’s a pretty bold quote in and of itself, but of course, this is coming from the man who made an awful lot of those so-called concessions in order to pick up Alltel a few years ago. Continuing on, he blasted out this gem: “We’re not interested in Sprint. We don’t need them.” In other words, there’s nary a chance in Hades that America’s current largest wireless carrier will be making a bid to keep it that way by shelling out for The Now Network. Why? Quite simply, he’d rather focus on being the most profitable US carrier rather than the largest. Not exactly what you’d expect coming from Verizon Wireless’ CEO, but hey — if he’s down for the competition, we’re down with watching from the sidelines.

Verizon Wireless CEO ‘not interested’ in buying Sprint, won’t waste time opposing T-Mobile / AT&T merger originally appeared on Engadget on Tue, 22 Mar 2011 07:54:00 EDT. Please see our terms for use of feeds.

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