Surprise, Verizon Backs AT&T's Merger with T-Mobile Discussion

Discussion in 'Headline News' started by Valerie Sarnataro, Sep 22, 2011.

  1. Valerie Sarnataro

    Valerie Sarnataro Brighthand Contributor

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    AT&T has found an unlikely supporter of its proposed merger with T-Mobile in its biggest rival, Verizon Wireless.Verizon Communications CEO, Lowell McAdam, suggested that the $39 billion acquisition should be approved for the benefit of American consumers.

    Read the full content of this Article: Surprise, Verizon Backs AT&T's Merger with T-Mobile

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  2. Hook

    Hook Have keyboard, will travel

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    Oh, yes, Verizon is always concerned with what is best for the American consumer. :rolleyes:

    The fact that Verizon thinks it's a good idea is, in my book, all the more reason for the deal to be blocked.
     
  3. Mi An

    Mi An Hyperfocal

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    Fair to assume ATT-Mobile will back Verizon's acquisition of whatever in a year? :rolleyes:

    I'm as cynical as Hook about motives, but on the outcome side I'd rather see this deal leveraged to increase MVNO viability than blocked.
     
  4. Hook

    Hook Have keyboard, will travel

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    You'll have to connect the dots for me to see how this merger helps MVNOs. In fact, since I suspect T-mobile has more MVNOs than AT&T, AT&T could even be resistant to opening up spectrum to MVNOs. I would think MVNOs would do better where they had more options for negotiation. However, I'm no expert here.
     
  5. Mi An

    Mi An Hyperfocal

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    I'm not assuming it makes things better, I'm suggesting regulators tell ATT if they want their deal approved, they'll need to ensure better treatment for MVNOs.

    I'm no expert either. But I'm not sure one minor extra player with a limited nationwide network makes much of a difference competitively if left on its own. Whereas to avoid losing $3billion + on the deal and to get what they want out of TMo, ATT might be willing to agree to more favorable terms for those who want network access.
     
  6. Hook

    Hook Have keyboard, will travel

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    Possibly. However, AT&T could equally claim they already serve that market adequately with thier Gophone unit, which really is an internal MVNO.

    I guess we'll see. For me, ultimately, it won't make much difference whatever happens, but I get nervous about moving closer to having only two Cell/Data networks in the US.
     
  7. r0k

    r0k Dazed

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    Winner!

    Verizon will accept anything that gets those nuisance Tmo guys out of the market with their cheap plans which are only ten bucks extra if you want to have no commitment.
     
  8. Mi An

    Mi An Hyperfocal

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    Then, in my imaginary world, the deal wouldn't go through. Who cares what they claim? ATT wants something, and that gives the regulators leverage they didn't have before to add competitiveness to the market. The approach requires no notice and comment and controversy, just a settlement between ATT and the FTC. I don't consider my approach likely at all -- it's too creative for government. I just wish it would happen.

    In my imaginary world, I haven't worked out exactly what terms ATT could offer that would make MVNOs more mainstream-friendly and sustainable, but I bet a room full of smart people could make some pretty good suggestions.

    I could be wrong, but it seems like a waste for each carrier to be building its own network (2 each, actually, voice and data), overlapping heavily with everyone else's 2 networks. I want more options, but I'm not convinced that more underlying networks pay off in competition what they cost in redundant waste. Especially when their plans all look so similar anyway.

    A vibrant MVNO ecosphere, one that could draw a powerhouse into the mix (like say, Google), sounds more like the type of competition that could benefit consumers.
     
  9. Varjak

    Varjak Mobile Deity

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    Ditto. (edited for being too short)
     
  10. LandSurveyor

    LandSurveyor LandSurveyor

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    What I would LIKE to see is some FCC oversight and regulations that would level the playing fields for regionals and MVNOs. I don't think what's currently on the books is doing much good; else they would be thriving under this current climate. I think the biggies still have far too much control (over their own networks, I know) and the public interest is not being served.

    The only thing that surprises me is that Verizon spoke at all. They would have been better served to remain silent. Committing themselves just looks self-serving - which, of course, it is.
     

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