Tag: "t-mobile"

Posted October 11, 2011 by christopher

Harold Feld details "double speak" from Deutsche Telekom in the matter of the AT&T takeover of T-Mobile. They have admitted it will kill jobs and is in no an essential outcome for either company.

Two weeks ago, Deutsche Telekom (DT) Chief Technology Officer Olivier Baujard accidentally spoke truth about T-Mobile to an audience of German investment analysts. After running through the usual company talking points about the effort to sell T-Mobile to AT&T (e.g., it will happen, DoJ is just playing hardball with negotiations, etc.), Baujard said at a public presentation at a Paris broadband conference that: “any rational company had a Plan B and that Deutsche Telekom had other opportunities for its U.S. operations should the U.S. Department of Justice succeed in terminating the deal.”

This is vitally important because, after accidentally shooting the “this is the only way to bring 4G to rural America” argument in the foot by accidentally leaking documents proving AT&T could bring 4G to rural America whenever it wants, and T-Mobile killed the ‘this will create jobs’ argument by confirming that it was preparing pink slips for more than 20,000 employees after the acquisition gets approved, the “T-Mobile is a sickly gazelle” argument is about all AT&T and it supporters have left. Unfortunately for AT&T, this is not the first time Deutsche Telekom has screwed up the “sickly gazelle” storyline by revealing inconvenient truths about its other options. And while there is usually a rule in Washington that “we totally ignore what you say to investors when it contradicts your chosen story,” this deal is sufficiently high profile and has sufficient problems that eventually someone may notice if AT&T’s “Sickly Gazelle Chorus” keeps getting thrown off key by Deutsche Telekom’s “We Have Lots of Other Options Counterpoint.”

Harold offers much more on this job killing merger in his excellent Tales of the Sausage Factory blog.

Coincidentally, the...

Read more
Posted September 7, 2011 by christopher

In the aftermath of AT&T accidentally admitting they have nothing but a smokescreen to justify buying one of their few competitors, it seemed that nothing had changed and AT&T was going to continue pushing this anti-competition, anti-consumer deal through.

But then the Department of Justice filed suit to prevent it. What does that mean and what is next? Public Knowledge tells us below. In the meantime, Sprint has also filed suit under the Clayton Act to separately oppose the takeover.

Why do we care here at Community Broadband Networks? Because the biggest companies - AT&T, Comcast, Verizon, CenturyLink, etc. - have tremendous market power that allows them a disturbing amount of power over the future of access to the Internet and as they become even larger, the prospects of any community building a network in their territory becomes more bleak.

Posted July 22, 2011 by christopher

But that doesn't mean we can't use humor to illustrate the very serious impact of more consolidation in the mobile market!  Check out four short commercials prepared by Free Press and vote on your favorite.  Our favorites are below.

Posted July 18, 2011 by christopher

We watch in frustration as the federal government, dressed as Charlie Brown asks AT&T, wearing Lucy's blue dress and smiling brightly, if she really will hold the football properly this time. "Oh yes, Charlie, this time I really will create all those jobs if you let us buy T-Mobile," says AT&T Lucy.

Over at HuffPo, Art Brodsky recently revisited AT&T's promises in California to create jobs, lower broadband prices, and heal the infirm if the state would just deregulate the cable video market -- which it did, 4 years ago. California upheld its end of the bargain -- wanna guess if AT&T did? Hint: Charlie Brown ended up on his back then too.

The answer comes from James Weitkamp (via Art's HuffPo post), from the Communications Workers of America, a union that all too often acts in the interests of big companies like AT&T and CenturyLink rather than workers:

"AT&T and Verizon have slashed the frontline workforce, and there simply are not enough technicians available to restore service in a timely manner, nor enough customer service representatives to take customers' calls. Let me share some statistics. Since 2004, AT&T reduced its California landline frontline workforce by 40%, from about 29,900 workers to fewer than 18,000 today. The company will tell you that they need fewer wireline employees because customers have cut the cord going wireless or switched to another provider, but over this same period, AT&T access line loss has been just under nine percent nationally. I would be shocked if line loss in California corresponds to the 40 percent reduction in frontline employees.


"Similarly, since 2006 Verizon California cut its frontline landline workforce by one-third, from more than 7,000 in 2005 to about 4,700 today. I venture that Verizon has not lost one third of its land lines in the state."

Note that AT&T, Verizon, and other massive incumbents like Comcast have been wildly profitable over this term.

The same trend holds in cellular wireless - as noted by the Wall Street Journal:

The U.S. wireless industry is booming as more consumers and businesses snap up smartphones, tablet computers and billions of wireless applications. But for...

Read more
Posted May 26, 2011 by christopher

We at the Institute for Local Self-Reliance signed on to a letter organized by our friends at the Media Action Grassroots Network asking the FCC and Department of Justice to thoroughly review AT&T's proposed takeover of T-Mobile -- read the press release.

“Our communities cannot afford higher prices and less choices. We need the FCC and DOJ to block this takeover if it's found to be in violation of antitrust law and does not meet public interest obligations,” said Betty Yu, National Organizer for MAG-Net.

"If AT&T takes over T-Mobile, it will be a disaster for all mobile phone users. It will stifle information, choice and innovation- and lead to higher prices and fewer jobs nationwide, added CMJ's Policy Director, amalia deloney. "It's a real jobs and democracy killer.”

The groups also contend the takeover will disproportionately harm consumers of color, who rely on their cell phones to access the Internet more than whites. While 10 percent of whites access the Internet only from their phones, 18 percent of blacks and 16 percent of English-speaking Latinos depend on affordable wireless coverage to get online.

And an excerpt from the letter [pdf]:

The impact that this merger would have on affordable mobile phone service, broadband access and adoption, openness on the mobile web and broadband competition presents a real threat to our communities. We hope that the Department of Justice and Federal Communications Commission will examine AT&T's proposed acquisition of T-Mobile with appropriate scrutiny and protect our communities by blocking this merger.

We intend to host a series of open and participatory meetings in our communities to discuss this merger, and we hope that FCC Commissioners will commit to joining us. It is only by communicating directly with people and hearing our stories that you will feel our deep concerns with this merger and the devastating impact it would have on our communities.

We continue to advocate for universal, affordable, fast, and reliable broadband, which to us means a wired connection eventually to all homes that are...

Read more

Pages

Subscribe to t-mobile