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.

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