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FCC responds to AT&T's attack on T-Mobile's layoffs

Posted: , by Alan F.

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FCC responds to AT&T's attack on T-Mobile's layoffs
On Friday, AT&T's Jim Cicconi blasted the FCC on its Public Policy Blog saying that the agency was to blame for T-Mobile's recent decision to close 7 of its 24 call centers. 3,300 T-Mobile workers were affected with 1,900 getting axed and the balance getting reassigned. Cicconi said that the failure of the FCC to approve the $39 billion AT&T/T-Mobile merger forced the nation's fourth largest carrier to make the move.

In a short period of time, T-Mobile has re-emerged as a vibrant competitor in the mobile marketplace. Competition benefits all wireless consumers. The bottom line is that AT&T’s proposal to acquire a major competitor was unprecedented in scope and the company’s own confidential documents showed that the merger would have resulted in significant job losses.
Later Friday evening, the FCC responded with a short statement that basically said that AT&T's own confidential documents relating to the deal had projected job losses. With that comment, the FCC was saying that even had the agency green lit the deal, there still would have been layoffs anyway. And to make matters worse for AT&T, redacted documents belonging to the mobile operator show that had the merger gone through, AT&T would have eliminated more than the 3,300 employees affected by T-Mobile's call center closing.

During the period when both the FCC and AT&T were battling each other in the press, the FCC made it clear that it believed that job cuts at call centers were inevitable despite AT&T's promise to keep all of the call center employees belonging to each carrier at the time of the closing, and its commitment to bring back 5,000 call center jobs to the States that had been outsourced.

source: AllThingsD

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posted on 24 Mar 2012, 01:01 9

1. Droid_X_Doug (Posts: 5534; Member since: 22 Dec 2010)


At least the FCC is not taking the lies being spewed by AT&T without responding. What a novel concept - hold the teller of lies accountable for the lies that are being told.

posted on 24 Mar 2012, 04:22 2

8. ardent1 (Posts: 1991; Member since: 16 Apr 2011)


Here's a novel concept: Pointing out droid_x_doug continues to say some of the dumbest things on phonearena.com. Recall d_x_d stated ATT was going to engage in a hostile takeover of TMobile. That comment was really just dumb!

ATT was not spewing out lies, TMobile employees are losing their jobs and d_x_d just doesn't get this nor the fact TMobile continues to lose contract subscribers so it's clear Tmobile isn't being competitive. There's no re-emergence, just some gov't employees trying to cover their butts.

posted on 24 Mar 2012, 06:37

9. darkkjedii (Posts: 10122; Member since: 05 Feb 2011)


Doug x doug is jus going with what he hears from anyone, but AT&T cuz he doesn't like AT&T. Did the FCC response deny AT&T's pledge to bring 5,000 outsourced jobs back to the US? No it didn't... Who says the FCC isn't lying, just to cover their tracks in making a dumb decision that's now causing Tmobile workers to b let go.

posted on 24 Mar 2012, 14:33 4

18. Droid_X_Doug (Posts: 5534; Member since: 22 Dec 2010)


Is that the best you can do - to accuse the FCC of publishing lies in an attempt to cover their tracks? Do you honestly believe that tripe? If there was even a hint of fallacy in what the FCC was saying, AT&T would have not dropped their attempt to complete the merger. They dropped it because they were not going to prevail. There is a concept in business called cutting your losses.

posted on 25 Mar 2012, 16:28 2

22. medicci37 (Posts: 593; Member since: 19 Nov 2011)


@ dark Jedi Conspiracy much ? It is a known & easily proven fact, that at&t was very misleading in what they said about the merger.

posted on 24 Mar 2012, 14:28 2

17. Droid_X_Doug (Posts: 5534; Member since: 22 Dec 2010)


Here is another novel concept - stop repeating your tired old lies. I wonder why you are so silent in your response (non-response) to justdealwithit's post below (#13 since you seem to be cognitively challenged)?

posted on 24 Mar 2012, 20:17 1

20. Lboogey6 (Posts: 264; Member since: 31 Jan 2012)


hey there guy lets be real get off your gov conspiracy high horse i have a buddy who works for tmo was getting letting about lay offs as they were moving a long with the buy there were to be at least 33,00 tmobile lay offs att doesnt give a s**t about anyone..

posted on 24 Mar 2012, 01:02 8

2. Gawain (Posts: 342; Member since: 15 Apr 2010)


Anyone that bought in to AT&T's mantra that they weren't going to cut personnel were deluding themselves. Mergers of that size always result in a "re-engineering" or "harmonization" or "synchronization" of "processes, departments, etc." It wouldn't have affected just service either - sales forces and their support staff would have been cut massively, because you don't need more persons in the same territory.

T-Mobile's cuts are not any more drastic than what VZW is in the process of doing right now either. Employees are a company's most costly expense in terms of dollars spent.

posted on 24 Mar 2012, 07:24 1

12. BuckeyeCadet86 (Posts: 68; Member since: 26 Oct 2011)


Actually t-mobile USA (owned by Deutsche Telekom) has a policy of outsourcing larger percentages of its call center than AT&T so yes the overall result would have been an increase in US jobs. VZW is only closing what amounts to about 1000 jobs worth of call centers and the majority are being offered the ability to relocate.

Recapping, yes there would have been redundancies that would have been eliminated but overall there would have been jobs created by the merger because AT&T would be bringing back many of the outsourced call center jobs.

posted on 24 Mar 2012, 12:45

15. Gawain (Posts: 342; Member since: 15 Apr 2010)


...forgetting about all the other overlapping functions - Network Ops, HR, Sales, Marketing, etc. What you're forgetting is that AT&T runs its wireless unit as an integrated part of the telephone company. T-Mobile has nothing AT&T wants except spectrum. Once those networks were fully integrated the cuts would begin. Promises given would be forgotten as the company would cite other economic or performance factors.

No, indeed, it would be a net loss in US based jobs - call centers or not.

posted on 24 Mar 2012, 01:12 7

3. snowgator (Posts: 3188; Member since: 19 Jan 2011)


Good for the FCC.

I cannot believe I just said that.

posted on 24 Mar 2012, 02:02

4. android_sucks (Posts: 111; Member since: 28 Jul 2011)


Well, I think that the evidence speaks for itself. Tmobile is a dying company and needs a "bailout" ASAP!!!!

posted on 24 Mar 2012, 02:04 1

5. android_sucks (Posts: 111; Member since: 28 Jul 2011)


We can all speculate what would have happened if Big Blue would have acquired Little Magenta but the result of them not doing that has resulted in jobs lossed.

posted on 24 Mar 2012, 06:39

10. darkkjedii (Posts: 10122; Member since: 05 Feb 2011)


Exactly

posted on 24 Mar 2012, 02:37

6. Forsaken77 (Posts: 546; Member since: 09 Jun 2011)


So AT&T said it would've kept all the domestic employees, probably dump the outsourced ones, and promised to bring 5,000 outsourced jobs back to the US? Even for those 5,000 jobs alone the FCC should've done it. Verizon, who is AT&T's biggest competitor even backed AT&T on the merger. Because they realize Tmobiles' infrastructure is going to grow stagnant and it'll fall apart eventually. So you give it to AT&T and they trim some fat, or Tmobile collapses and all TMo employees lose their jobs.

posted on 24 Mar 2012, 06:40 1

11. darkkjedii (Posts: 10122; Member since: 05 Feb 2011)


True.

posted on 24 Mar 2012, 16:44 3

19. remixfa (Posts: 13902; Member since: 19 Dec 2008)


forsaken, there was going to be massive lay offs regardless of the lies ATT sells. Many ATT and Tmobile stores are near each other. Did you think that the stores would merge and all employees would keep their jobs?? that there would be 2 managers, 2 assistants, and whatever else at each store? No. T-Mobile told us upfront while ATT was promising no job losses, that we were all getting fired. They told us what our severance was nearly a year before the merge would have went through. ATT was counting jobs lost "after" the merger to hide the numbers. We were all going to be let go right before the merger got its final signatures.
The truth is, that had the merger happened, thousands on both sides would have been fired because of the over lapping positions. And in the end, you would have the most expensive carrier buying up the cheapest national carrier... which is NEVER good for competition and keeping prices in line.

posted on 24 Mar 2012, 03:10 4

7. CM_Punk (banned) (Posts: 173; Member since: 13 Mar 2012)


The merger should have happened, wireless spectrum is decreasing while demand is increasing tremendously. But of course, the government is like ostriches with their heads in the ground.

#bestintheworld

posted on 24 Mar 2012, 09:28 4

13. justdealwithit (Posts: 3; Member since: 24 Mar 2012)


Underlying Burnstein and Bodes’ criticism is the fact that operators have been sitting on unused airwaves for years while simultaneously asking the government for more. AT&T and Verizon Wireless bought their AWS in 2006 and have yet to deploy a single commercial cell site, though T-Mobile, MetroPCS and Leap Wireless have launched multiple networks over the same airwaves. Sprint and Clearwire are sitting on a goldmine of 2.5 GHz frequencies, which remain unused in two-thirds of the country. Even in the markets where they have launched WiMAX some 100 MHz of their spectrum still lies fallow.

So is the spectrum crisis a myth? Are the operators simply playing on fear to gobble up more of the public airwaves? I agree with Burnstein and Bode in principle, but I don’t think the capacity crunch is pure fiction either.

This is part of a report published that deals with the "spectrum crisis" jobs would have been lost no matter if the merger would have happened or not. I am not defending any cell phone company all are scammers and bureaucrats looking to make money out of all of us, so why defend them defend your self, your money, and your best interest.

As for the employees losing there jobs, I do feel sad and sorry for them altough many companies are hiring more now, only reason why i know, i my self have been looking to relocate and fine a better paying job.

So stop defending the companies that would trade each and every one of us for a little more green, and start reading and researching be informed.

posted on 24 Mar 2012, 10:47

14. vvelez5 (Posts: 623; Member since: 29 Jan 2011)


Government lies and the FCC is embarrassed by a stupid decision that was made because people have no concept on what a duopoly means.

posted on 24 Mar 2012, 13:03

16. downphoenix (Posts: 2267; Member since: 19 Jun 2010)


If T-Mobile crumbles completely, it will be better for the economy than if AT&T swallows them whole. Those 20something million customers will have to find new homse, and that means new jobs at all the other carriers that adopt them.

posted on 25 Mar 2012, 10:29

21. hitechredneck (Posts: 55; Member since: 21 Nov 2011)


FCC can say what they want to and you all can to. But the fact of the matter is there was no monopoly or duopoly. Just AT&T helping out deutsche telekom. You all say all these things but didn't AT&T just give T-mobile 3 billion dollars and spectrum. So where did that money go? Where ever deutsche telekom wanted it to go obiously not to T-mobile. So some people would have lost there jobs. Join the rest of us that are unemployed and can't find jobs. I guess you have to look at it this way either layoff 3300 employees or have a whole carrier go under. Did anyone ever think that verizon had a few federal employees in their back pocket too. Just saying.

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