Shocker: AT&T Lied About T-Mobile Merger.

  • August 12, 2011 8:11 pm

AT&T has a reputation — for screwing their customers over. And that reputation just got another black eye today with the leak of partially redacted FCC documents. The biggest sham that’s been revealed is AT&T’s claim to absolutely, 100%, they will die if they don’t, need T-Mobile’s spectrum to hit their 97% LTE coverage footprint, and rollout said network in a timely manner. The truth: they don’t…

In the leaked FCC documents highlighted by TechCrunch, AT&T blatantly says they could buy all the spectrum they need for an LTE network that covers 80% of Americans for a mere $3.8 billion. The remaining 17%, however, will end up costing AT&T $39 billion if the merger is allowed to go through. Sound like a waste?

ABI Research analyst Phil Solis doesn’t (necessarily), stating:

“They’re making the case that if they’re allowed to acquire T-Mobile, they’ll have so many revenue benefits that they’ll be able to afford the extra coverage. It would help.”

The more pressing issue of course is that AT&T and Verizon would make up a massive duopoly in the U.S. Essentially, what’s good for AT&T (and AT&T shareholders) is not good for U.S. consumers. Hopefully the Department of Justice and FCC can see through AT&T’s marketing buzz words and sugarcoated lies to find the real truth in it all. If AT&T has to make less return on investment by actually spending that $3.8 billion, so be it.

An AT&T spokeswoman has officially responded to questions regarding the newly found information by stating that nothing within the leaked — they stressed “confidential” — documents was new.

“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% of the population following our merger with T-Mobile. Without this merger, AT&T could not make this expanded commitment. This merger will unleash billions of dollars in badly needed investment, creating many thousands of well-paying jobs that are vitally needed given our weakened economy.”

It appears we are getting shafted.


visit my website

Gadget lover, smartphone collector, and beer connoisseur. I've been writing about gadgets for three years now and loving every minute of it. Outside of the digital landscape, I enjoy being active outdoors. I'm always up for a good conversation, so feel free to drop me a line!