Facebook, Microsoft support AT&T, T-Mobile merger
Summary: AT&T is getting the support from some very well-known friends in its bid to acquire T-Mobile.
AT&T is getting the support from some very well-known friends in its bid to acquire T-Mobile.
According to DealBook, at least 10 venture capital firms have inked letters in support of the major merger and submitted them to the Federal Communications Commission.
Even bigger news is that some of the biggest names in the tech industry have stepped up to pledge its approval, including Microsoft, Research in Motion, Yahoo, Oracle, Qualcomm and Facebook, just to name a few. It's not a very surprising list when you think about it as a lot of these companies already have relationships with AT&T, in particular Microsoft (think Windows Phone 7) and RIM.
Here's a snippet of the official reasoning offered in a joint letter:
AT&T ’s acquisition of T-Mobile represents a near term means of addressing the rising consumer demand. For example, the merged company will be able to leverage a larger network of cell sites allowing greater reuse of spectrum and increasing the wireless broadband capacity of the network. Furthermore, AT&T has indicated that it will migrate the T-Mobile network to LTE technology and offer LTE-based wireless broadband to 97.3 percent of the U.S.population. AT&T has stated that its LTE deployment will bring significant benefits to residents of rural areas and smaller communities, where the benefits of real-time video and similar capabilities are most urgently needed to fill gaps in physical infrastructure for healthcare,education, and other social needs.
To get a full snapshot of that letter and a few others, just scroll below. (Just don't expect to see a supportive note from Sprint any time soon...)
Microsoft et al Letter Backing AT&T-T-Mobile Deal
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Talkback
RE: Facebook, Microsoft support AT&T, T-Mobile merger
It is amazing how much competition and surging forward the computer industry has done in the time that Microsoft was minding it's P's and Q's. I guess we are going to have to let AT&T merge with T-Mobile to then turn around and break it back up !
So
RE: Facebook, Microsoft support AT&T, T-Mobile merger
RE: Facebook, Microsoft support AT&T, T-Mobile merger
Thank you!
P.S.
http://www.nytimes.com/2011/02/11/us/politics/11obama.html
and
http://www.channelpartnersonline.com/news/2011/06/att-t-mobile-merger-would-almost-meet-obama-s-broadband-goal.aspx
Now add in data plan caps because those will hurt one's ability to innovate, compete, etc, and really give us the full details.
How?
RE: Facebook, Microsoft support AT&T, T-Mobile merger
They have competition from Verizon even after the merger and Sprint is going nowhere. Once a Sprint customer likely to be Sprint customer.
RE: Facebook, Microsoft support AT&T, T-Mobile merger
Sprint is 16 billion in debt & is to dependent on backhaul . They will have to have a merge with Verizon . Funny that Clearwire & all its spectrum looks to be the company with no parachute . Unless certain regulations are put in place to protect Sprint it's a goner . Even Dan Hesse testified to that infront of congress . Its no real surprise that these companies would back AT&T . Facebook gets the advertising dollars & AT&T is now the main provider windows phones . Plus this merger precedent would aid them should they be brought up for monopolization again. Microsoft organized it .
RE: Facebook, Microsoft support AT&T, T-Mobile merger
I would be careful in saying Sprint is going nowhere. Big chance that IT AT&T merges with T-Mobile, then there is a good chance that Verizon would attempt to purchase Sprint. As I said before, just seems to me that we are allowing another "TOO BIG TO FAIL" which will decrease competition.
RE: Facebook, Microsoft support AT&T, T-Mobile merger
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Monopoly / Anti-Trust candidate?
Why? there are still Verizon, Nextel/Sprint, now AT&T and T-Mobile.
What would you have happen, let T-Mobile die off and have it's assets bought up by Verizon, Nextel/Sprint, AT&T?
RE: Facebook, Microsoft support AT&T, T-Mobile merger
AT&T paid 39 billion for a twenty billion dollar company . Obviously there were other suitors or why overpay by 19 billion when you have to get a 20 billion dollar loan from JP Morgan to secure the purchase . Price control isn't cheap . It will be passed on to its consumers . Thats just common sense . Then you add the lobbying money & payoffs . I really hope this doesn't become a " to big to fail " example . Maybe we talk on the phone less . Not a bad thing .
But would they do any better
I agree, there likely a few other suitors, but why where they for sale to begin with? Unless someone with big plans and deep pockets were the other bidders, I can't see how they would have lasted in the future losing money every quarter.
RE: Facebook, Microsoft support AT&T, T-Mobile merger
DT has pulled out of several markets . Their aim is to consolidate around central Europe .They were not losing money on T-Mobile . The opposite actually . Its a business decision & you sure can't blame them for taking an incredible offer like that . What company wouldn't . I think that peoples rates will rise but that doesn't warrant losing sleep . You adjust . Now you find cell phones can cause tumors . Maybe you should adjust anyway . I was around when AT&T was the only game in town . It might have been inconvenient to a degree but its only phone service . The phone has been marketed great lately but at the end of the day its just a phone . It can only replace so much . It can be used less .
RE: Facebook, Microsoft support AT&T, T-Mobile merger
Don't forget US Cellular.
I understand some of the concerns but if this could improve call/data reliability and quality then I am all for it. I have been with AT&T since before it was Cingular and can honestly say I have never experienced the horrible service and quality some say they have.
RE: Facebook, Microsoft support AT&T, T-Mobile merger
As an AT&T customer, I have seen them (and Verizon) slowly decreasing innovation and choice (unlimited data plans). I have been considering moving to T-Mobile for some time, but as soon as I heard that AT&T was going to purchase them I stopped considering it.
RE: Facebook, Microsoft support AT&T, T-Mobile merger
Not to mention hundreds of smaller carriers in different regions. Is this merger approaching the edge of a monopoly? Maybe, I don't think it's an easy yes or no.
I do believe that if ATT thinks this merger will allow for price controls they're terribly wrong; with all the bad publicity ATT has, any major difference in price between them and Verizon and Verizon will eat ATT alive.
Given the number of buyouts MS has made, of course they'd consent
Facebook is only looking out over its future desires to do buyouts as well.
The merger is anti-competitive, and we've been told often enough that "competition is good".
Too big to fail, anyone?
RE: Facebook, Microsoft support AT&T, T-Mobile merger
RE: Facebook, Microsoft support AT&T, T-Mobile merger
Most consumers understand that if this merger goes through prices will rise . T-Mobile was still profitable and is now . The anger stems from AT&T paying twice what T-Mobile was worth & being the only other GSM provider . Obviously if someone is paying 20 billion more than a company is worth there are other prospective buyers and you are expecting more in return than just spectrum and cell towers . Just common sense . There is nothing wrong with supporting AT&T . But you can't blame people for being concerned especially if you have T-Mobile or Sprint .Personally my only concern is with the debt AT&T is taking on they don't fall into a " to big to fail " scenerio .