I am writting in response to the articles "The Effect on Workers, Customers" and "Justice Right to Block AT&T's T-Mobile Grab".
I really thing that the first article Effect on Workers, Customers was fairly good but missed a few things. AT&T historically has kept contract and pricing terms the same for customers who came to them through a merger until they were ready to switch over or unless technology change made it necessary for instance switching from CDMA to GSM (like the conversion in some areas from the Alltel aquiring from the Verizon break up).
T-Mobile was already moving to implement LTE and their cellular network architecture is similar to AT&T because both were UMTS and HSPA+ networks that have an easier path of upgrade to LTE. Thus making the acquiring of it and the expansion of LTE to 97% of Americas the most plausible. If Sprint or Verizon were to acquire T-Mobile they would be face with must more expense, network improve and a much longer time frame to roll out LTE and more conversion of customers devices.
The article mentions that AT&T will bring over 5000 jobs from overseas back to the U.S. but it failed to mention the committment to keep and convert all T-Mobile call centers and their 25,000 employees. There have been studies the article failed to mention that estimate that LTE will bring 700,000 jobs and that the merger will help fuel that at a faster rate. Since the networks are similar and the need to maintain and expand those networks is there. Will the role out of LTE coming there wont be time to lay off employees retrain new ones. This benefits T-Mobile employees who are more than likely to keep their jobs. With the annoucement to keep the call centers AT&T has demonstrated it's desire to keep a strong presence of T-Mobile workers.
The article "Justice Right to Block AT&T's T-Mobile Grab" is false. The basis behind the antitrust concerns is that there are currently 4 carriers covering 90% of the country. This will create 3. The fact is that T-Mobile would go out of business anyway if this deal didnt happen leaving 3 carriers anyway and a lot of customers scrambling to find a new carrier. Verizon took bailout money and cannot afford a deal of this magnitute. Sprint has it's own problems with Comcast and Clear Communications and is struggling financially ever since before the Nextel deal. Since both of their networks set up so different it wouldnt benefit them to take T-Mobile.
The best possible solution is AT&T and T-Mobile merger. This will extend out coverage to 97% of Americans and businesses. The technology community and business are backing the deal. Phone, tablet and other device makers all have sworn statements that this will not hurt their innovation and they will continue to provide their innovations to other carriers.
The fact is this will cover more people, give more options, bring more spectrum, bring more possibilities and innovation to Americans. Basic economics tells you more supply brings costs down. Sprint when they launched their 4G service brought down cost to customers, Verizon offered discount plans as well. This will bring down cost. AT&T spends more capital that most companies in the country and they are among the most innovative and hold thousands of patents and won prizes and awards for their innovations.
In Asia carriers have to cater to the phone companies. They see the features the phones have and they want it so they adapt their network to the phones. The major innovations are the phones and devices. We are seeing a shift to that here in the U.S. with iOS, Android, Windows, WebOS. It is greating benefiting customers and bringing more innovation to the carriers, customers and businesses.
Historically, if you look back at the break up of Bell/AT&T and the amount of innovations and then look at see what has happened to the next 20 years. Look at the break up of Microsoft and what happened before and after it. Innovation for both companies slowed and delayed a lot of what we have now. It is no secret that bigger companies are more innovative.
The last fact is no one else is willing to expand their network to cover of the country. It is desperately needed for customers, business, prices, jobs and innovation. All these will benefit from it. There is no doubt.
Thank you for your time,
Blake
Redmond, WA
1 comment:
Good job man!
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