Blog Post

Early Reaction To AT&T-T-Mobile: Bad For Public, Good For Bored Regulators

How is AT&T’s blockbuster proposal to acquire T-Mobile USA being seen by the tech and wireless communities? A sampling of reactions to the huge deal follows, and few are positive when it comes to the impact of the deal on anyone except the companies involved.

Jonathan Chaplin, Credit Suisse: “We have never seen a deal with more regulatory risk be attempted in the US. It is unlikely that AT&T (NYSE: T) would attempt a deal that they knew would fail; however, we can’t see how they would get this through without massive divestitures and concessions. It looks like AT&T is on the hook for a $3BN break-up fee if the deal fails – not huge (maybe a worthwhile price to pay just to break up the Sprint (NYSE: S) / T-Mobile deal).”

Om Malik, GigaOm: “It is hard to find winners apart from AT&T and T-Mobile shareholders. … It doesn’t matter how you look at it, this is just bad for wireless innovation, which means bad news for consumers.” [GigaOm]

Anil Dash, Activate, Expert Labs: “On the plus side, it’ll be fun to watch the government break up AT&T again in a few years. Keeps re-forming like the T1000 in Terminator 2.” [via Twitter]

Scott Raymond, ZDNet: “I left AT&T last year because I was fed up with the terrible AT&T service, along with poor customer support. … With AT&T, I can expect the T-Mobile service to degrade, customer support to be switched over to one that doesn’t care, and billing options being changed and costs increased with little warning once the contract ends.” [ZDNet]

Jim Cramer, *CNBC*: “I think that the Justice Department should never allow this TMobile-(AT&T) deal through. But they may not care…” [via Twitter]

Charles Golvin, Forrester Research: “The good news: high-speed mobile broadband service will improve in quality and coverage, including – in the long run – those in rural communities outside the reach of terrestrial broadband today. The bad news: the cost of that service won’t come down nearly as fast as customers would like, since AT&T and Verizon Wireless (NYSE: VZ) combined would own nearly three out of every four wireless subscriptions in the US.”

2 Responses to “Early Reaction To AT&T-T-Mobile: Bad For Public, Good For Bored Regulators”

  1. Forget the Iphone. Damn, I don’t care for the Iphone. For us T-mobile users, we did not choose T-mobile because of the possibility of an Iphone, we chose T-mobile because it was a better alternative to crappy At&t. Forget this man. My contract runs up in Nov. Sprint, here I come.