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TechnoBuffalo editor on AT&T, T-Mobile merger and Sprint, iPhone deal
- Duration 4:44
- Date Aug 31, 2011
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TechnoBuffalo editor on AT&T, T-Mobile merger and Sprint, iPhone deal
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And arrogant discuss a -- -- AT&T.
And T-Mobile agencies -- trying to take over Kimmel for a little while now and now we find out that the Department of Justice just filed suit.
To try to prevent that deal from happening stereotype about that and the sprint iPhone deal them and already know -- Kravitz editor at large -- -- and buffalo dot com.
-- what do you make of this new development now at the with the DOJ filing suit to prevent AT&T'S takeover T-Mobile.
Well Dan Hess is a happy -- this yeah.
You know that the folks rates in C in the folks from Deutsche Telekom not so much itself the deal's not dead but it's a pretty stern message from the DOJ.
And also from the FCC both.
They're DOJ.
Filing suit and the FCC also expressing strong reservations.
That basically what AT&T said.
The merger would do to help the American consumer the government.
Doesn't necessarily believe that so it's going to be a fight for agency they stand to lose.
About seven billion dollars total three billion dollars in cash -- a clause they have to pay out.
T-Mobile if the deal is -- -- and another four billion or so in services and other compensation so I entities not gonna go out about a fight that's for sure.
Medical -- from the US attorney general is that we feel the combination of AT&T and T-Mobile would result in tens of millions of consumers all across the US facing higher prices.
Fewer choices and lower quality products for their mobile wireless services if the deal -- to go through what are your thoughts on the.
Well.
It's not a -- iphones for everybody thing that's for sure but you Mobil's long been known for.
-- low cost plans their family plans they've done some innovative stuff here and there with Wi-Fi calling and other ways to cut costs.
Coming in with smart phone plans will be cheaper than the other major national carrier so.
That's all I mean that's all from my perspective very true I AT&T trying to make the case that the merger would help them.
Roll out their four -- network bring more spectrum higher speed data to more people across the country.
And basically what the DOJ said was you know that may be true but it's far outweighed.
By the potential damage of eliminating.
-- close but lower price competitor.
And now I -- shift gears a little bit Britain of course is standing by they came out against this deal.
But sprint has a deal in its own coming out now where there are gonna and adopt the iPhone right now we have -- -- AT&T and then Verizon came into -- -- -- -- is -- be available on sprint.
How does all this play into that merger.
Well again you know it's a it's a happy.
Cautiously happy but pretty happy day.
And sprint headquarters this morning that there's nothing official announced.
About the iPhone coming to spread but our rumors conventional wisdom or whatever there is -- -- in our business all playing towards that.
And this could be a big.
A big deal and a little bit of a calculated risk for sprint you know they've been.
Falling behind.
Kind of third place -- wider margin -- T-Mobile and AT&T obviously I mean to Verizon AT&T.
Obviously the T-Mobile AT&T deal would create -- -- close to a duopoly.
So the combination of the deal.
You know suffering major below and perhaps not going through.
Plus.
The adoption by -- -- most popular.
Smart -- when I in the land would be huge for that there are some risks I can there network handle this sort of giant.
I dated demands that AT&T in particular in the Verizon is seeing when they adopted the iPhone.
Also would -- have to get rid of their unlimited data plans and good to a tier structure like AT&T and Verizon have.
In ordered it to deal with the the additional cost not only for the -- -- possibly for the subsidies they would have to pay apple.
In order to carry the phone.
It would that would they have I mean I think taking the risk of having to then have to reinvest in their network capabilities -- they take on a phone that consumes so much data.
You know they are investigating -- -- and they're gonna have to do that you know one way or another they've always sort of been.
The scrappy little brother to eighteen million Verizon if you well and that you know last year they made it a huge I mean that no love him.
They've -- they made a huge push with.
One the first so called for Gphone and in the United States Andrew funded by HTC.
Spent a lot of money on not.
You know that that.
-- call hall as well as marketing the phone.
-- -- -- that's a position there and and you know the iPhone if there is a calculated risk that's worth all the investment this is it right now.
So it's it's what they have to do and now believe me if they can do it you know they RD -- and we'll find out in the next month or so.