AT&T says it has enough cash and desire to close the T-Mobile deal
Still, AT&T says that it not only has the desire to continue its pursuit of the nation's fourth largest carrier, it also has enough money on hand to close the deal quickly. Recently selected as the carrier with the lowest customer satisfaction by Consumer Reports, AT&T has $10 billion in cash, a $20 billion bridge financing and an $8.5 billion backup all ready to use at a moment's notice. AT&T CFO John Stephens says, "So we clearly have an ability to close the deal very quickly and have those resources. That is the plan."
AT&T's focus right now is on the lawsuit against the DOJ. The carrier will have to prove that the merger will not lessen competition in the industry and will not result in job cuts. In the past, AT&T has promised to bring a number of jobs back to the States and there is some talk that the company would divest itself of as much as a 40% stake in T-Mobile's assets.
If AT&T does win the case, it will still have to re-file with the FCC and the company also faces lawsuits from rivals Sprint and C-Spire.
source: Reuters via Phonescoop
2. networkdood (Posts: 6330; Member since: 31 Mar 2010)
Let them do it. The government allowed Verizon to get a huge chunk of AWS airwaves. T-Mo owners want to sell. Sprint could not afford them and no one else besides Verizon can. Get it over with and tell AT&T that they cannot raise rates on any AT&T or T-Mo customers for 5 years.
6. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)
What I have been advocating for.... In fact, AT&T should be prohibited from any outside investment until they get their network metrics (customer satisfaction, dropped calls, data speed, etc.) up to a level that is at least 95% of how VZW scores.
I wonder how many thumbsdown votes I will get for this post? :-)
10. networkdood (Posts: 6330; Member since: 31 Mar 2010)
good idea...they have improved on 2 of 3 metrics so far...
11. JGuinan007 (Posts: 661; Member since: 19 May 2011)
Where do you people live? I live outside Philadelphia and get service every where except my bunker of an appartment where I have to go to a window but once there I get 3-5 bars of 4g in fact the last time I remember seeing 3g was when I had my tilt 2 since I got my inspire I haven't seen 3g speeds or lower I havn't had a dropped call in like 3yrs and I travel all over from DC, AC,and NY with no issues I had Sprint, Tmo, then Cingular and now AT&T. Cingular and AT&T had been the best I have no complaints
12. networkdood (Posts: 6330; Member since: 31 Mar 2010)
I hear ya - when I had them, I had no dropped calls and about 3.5-5 mbps download speeds on my captivate.
14. ardent1 (Posts: 2000; Member since: 16 Apr 2011)
All kidding aside (i.e. your comment of ATT and its hostile takeover of Tmobile USA), ATT CANNOT improve its dropped calls unless it has more spectrum. The DROPPED CALLS are a symptom of spectrum constraints.
ATT is in a catch 20-20 situation based on your comment.
Lastly, you get thumbs dumb for making really inane comments like ATT will engage in a hostile takeover of Tmobile USA.
16. ledbetterp3 (Posts: 467; Member since: 31 Aug 2011)
At&t is supposed to have better data speeds than verizon? at least I heard from phonearena...
18. networkdood (Posts: 6330; Member since: 31 Mar 2010)
ledbetter, having owned a captivate and now a DROID RAZR - AT&T does get better speeds - I am lucky to get 1mbps down on Verizon 3G, at least where I live, and I get 3.5-5 down with the captivate. But, when LTE 4G goes lives, then Verizon will be the obvious winner for me.
22. ledbetterp3 (Posts: 467; Member since: 31 Aug 2011)
You mean Verizon LTE is faster than at&t data? or Verizon is better overall, mostly because coverage? Btw, nice choice of phone, I want the RAZR, currently with the ATRIX 2, which is pretty similar..
4. Birds (Posts: 1146; Member since: 21 Nov 2011)
I don't care any more. I'm still on Alltel and am perfectly happy. lol.
5. HTCiscool (Posts: 449; Member since: 16 Jul 2011)
Hopefully it will use the cash to extend its LTE network Nd improve support.
8. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)
Why would they want to do that? If they can acquire T-Mo, they can give the middle-fingered wave to the unhappy customers who leave and have them counted toward the 'divestiture'....
7. remixfa (Posts: 14255; Member since: 19 Dec 2008)
If the FCC told them that the only way it would allow it is if they matched Tmobile's rates for all customers for the next 4 or 5 years, I could get behind that. They would never be able to pull their rates back up and it would force VZW's rates down really quickly. :)
9. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)
I doubt AT&T would accept that condition due to the impact they would claim it would have on their revenues and by extension, profits. Of course, if they dropped any pretense of customer support, it might fly.
15. NoMoGreedPls (Posts: 1; Member since: 08 Dec 2011)
For a company with the worst customer service, least innovation and highest rates be allowed to march this far on its path of destroying its sole GSM competitor is beyond belief.
With the advent of wireless technology, rates should only go down to around $20/mo in the next 4-5 years, not stay at par! SHAME ON GREED !!!
17. remixfa (Posts: 14255; Member since: 19 Dec 2008)
great.. we got an occupy protester. get a job. lol
19. networkdood (Posts: 6330; Member since: 31 Mar 2010)
Greed is a symptom of capitalism, unfortunately.
However, when the merger does happen - by 2013-14, Sprint, Verizon, AT&T will all have, hopefully, large 4G LTE networks. Competition will be fine, until Sprint can no longer afford to tack on more debt :-)
20. remixfa (Posts: 14255; Member since: 19 Dec 2008)
lol, i guess people hate a good idea the helps every one. chances are this deal will find a way to go through in some way shape or form.. at least my idea lowers prices for everyone. :)
13. hepresearch (unregistered)
I really am not keen on this merger, but it looks to me like it will happen one way or another. AT&T and T-Mobile will do whatever it takes... find partners to divest to, whatever... they have set their desires on this, and it will happen. This is just the way it is gonna be for a while; less choice, higher prices, less competition, slower innovation.