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AT&T Working With Leap to Save T-Mobile Deal
Though Will it Be Enough for the DOJ?
by Karl Bode Tuesday 29-Nov-2011 tags: competition · business · wireless · consumers · wireless
Earlier this week inside sources stated that AT&T was cooking up an eleventh-hour deal to try and save their planned $39 billion acquisition of T-Mobile. That deal involves AT&T divesting a significantly-larger chunk of T-Mobile spectrum assets -- up to 40% -- in the hopes of getting the DOJ's blessing. Citing additional anonymous sources, the New York Times says that AT&T is working closely with Leap Wireless on a proposal that would involve offloading most of those divested assets to Leap. AT&T apparently hopes that by throwing assets they didn't really need anyway (most of T-Mobile's infrastructure duplicates AT&T's), they'll get the DOJ to back off. However making relatively-tiny Leap slightly bigger does nothing to cure the fact that the deal still eliminates competition while making the AT&T/Verizon duopoly stronger.

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n2jtx

join:2001-01-13
Glen Head, NY

Twenty Percent

Still hoping the analysts are right and this deal has less than a 20% chance of closing. Also it would be nice of the FCC to dismiss AT&T's application with prejudice. There are better consumer oriented companies out there who would be a better suitor for T-Mobile.
--
I support the right to keep and arm bears.
FastLearner

join:2003-09-14
Arvada, CO

Re: Twenty Percent

The only way this deal gets done is if ATT purchases just the wireless infrastructure. Then leases the wireless infrastructure back to T-Mobile. That would leave most of T-Mobile intact.

n2jtx

join:2001-01-13
Glen Head, NY

Re: Twenty Percent

said by FastLearner:

The only way this deal gets done is if ATT purchases just the wireless infrastructure. Then leases the wireless infrastructure back to T-Mobile. That would leave most of T-Mobile intact.

An analyst suggested something similar a few months ago. T-Mobile and AT&T enter into a cooperative network arrangement to use each others networks. They would still have their own networks but would augment each other for additional capacity.
--
I support the right to keep and arm bears.
chgo_man99

join:2010-01-01
Schaumburg, IL

Re: Twenty Percent

Tmobile did this with orange in the UK.
25139889

join:2011-10-25
Toledo, OH
they did that YEARS ago in Cali.
countscabula

join:2010-03-09
nothing like letting the govt pick the winners and losers in a free market system. sounds like something out of Atlas Shrugged
steven s
Premium
join:2002-09-14
Dearborn, MI
Reviews:
·WOW Internet and..
·AT&T U-Verse

Re: Twenty Percent

That's why we live in a mixed market system. The government always guides the economy - railroads, power infrastructure, telephones, universities, cities - none of these happen without the government making decisions that benefit some at the expense of others. Government works for public benefit, the private sector generates the growth - a free market didn't make us great, so why would anyone think it can save us?

fuziwuzi
Not born yesterday
Premium
join:2005-07-01
Atlanta, GA
said by countscabula:

nothing like letting the govt pick the winners and losers in a free market system. sounds like something out of Atlas Shrugged

You never met a cliché you didn't like, huh?
--
Teabaggers: Destroying America is Priority #1
Telco

join:2008-12-19

Re: Twenty Percent

Great signature.
Telco

join:2008-12-19
Reviews:
·Callcentric
Yes, because failed unregulated GOP voodoo Reaganomics worked so well for our nation.

Moreover, laughable how the puppets repeating RWer talk-radio talking points fail to ever acknowledge the multitude of nations that have better and cheaper services; a direct result of their government's pro-competition policies.

For example, our private airlines are crap and bankrupt; government owned Singapore and Emirates are world renowned and extremely successful.
chgo_man99

join:2010-01-01
Schaumburg, IL

Re: Twenty Percent

dont forget french and british Concord that was successful for over 20 year

IowaMan
Premium
join:2008-08-21
Grinnell, IA
Reviews:
·Mediacom
·Iowa Telecom

Leap maybe leaping to ATT anyway

According to the WSJ they want to sell out
»online.wsj.com/article/SB1000142···982.html
What they should do is merge with U.S Cellular although Sprint might grab both of them so what's the point?

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:7

Re: Leap maybe leaping to ATT anyway

You realize that article is from nearly 2 years ago, right?

IowaMan
Premium
join:2008-08-21
Grinnell, IA

Re: Leap maybe leaping to ATT anyway

Yes however, they still might shop around...
25139889

join:2011-10-25
Toledo, OH

Re: Leap maybe leaping to ATT anyway

If Sprint wanted them they would have done it a long time ago. Sprint is actually broke now with NO extra cash reserves to spend on anything after the iPhone deal. That has been in the news for sometime. Not sure why it never made any news on here except a few outside links that pop-up about random things.

But with everyone moving to different networks and now Sprint has no money; Sprint's only option is really to be sold at this point. Maybe China Mobile with Clear.
iansltx

join:2007-02-19
Golden, CO
kudos:2

Re: Leap maybe leaping to ATT anyway

Clear is more broke than Sprint. As for lack of subscribers, last quarter Sprint had as many net adds as VZW, for over 50M customers. That's nothing to sneeze at, though it's half of AT&T or Verizon (better than TMo though).

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

Leap Wireless is the Cricket brand you see on TV

»www.leapwireless.com/brands

Check out current coverage.
»www.mycricket.com/coverage/maps/wireless

Talk & Text Dark Green is Cricket. Light Green is roaming.



Data


--
The nine most terrifying words in the English language are, I'm from the government and I'm here to help.
»www.politico.com/rss/2012-election-blog.xml


ilikeme
I live in a van down by the river.
Premium
join:2002-08-27
Denton, TX
kudos:1

Re: Leap Wireless is the Cricket brand you see on TV

Where Cricket/Leap does not have their own network, they use Sprint as their home network.
axus

join:2001-06-18
Washington, DC

Do AT&T or Verizon have any well-run competitors?

Sprint always screws up a merger, otherwise I'd say they should take T-mobile. As much as I dislike AT&T's practices, they seem to run their company well enough.

I think their takeover of T-mobile gives AT&T too much power, but somebody besides Verizon and AT&T need to step up and increase competition. It's strange to see T-mobile's desire to sell out, why not take the same path as Sprint and keep upgrading and making money?

jseymour

join:2009-12-11
Waterford, MI

Re: Do AT&T or Verizon have any well-run competitors?

said by axus:

As much as I dislike AT&T's practices, they seem to run their company well enough.

Sure, if you're an investor or one of its highly-paid execs. But if you're a customer, not so much.

Jim
RichNice

join:2003-01-09
Columbia, MD

What about....?

....Centurylink? I'm surprised the merger happy folks over there aren't jumping through hoops to get a wireless division.
ISurfTooMuch

join:2007-04-23
Tuscaloosa, AL

Re: What about....?

Or Vodafone. They narrowly lost to Cingular in the bidding to get AT&T Wireless, and they've never been happy that VZW, which they own 40% of, is CDMA. The speculation a few years ago was that they wanted to get ATTWS so they could sell their VZW stake to Verizon and have a GSM network for their overseas customers to roam on.
WHT

join:2010-03-26
Rosston, TX
kudos:5
CenturyLink signed a partnership with Verizon last fall.

Cheese
Premium
join:2003-10-26
Naples, FL
kudos:1
Sprint = Embarq = Centrylink unless they have completely moved away from Sprint.
Stumbles

join:2002-12-17
Port Saint Lucie, FL

Monkey (ATT) see, Monkey do (Verizon)

Sounds like AT&Ts version of a Fairpoint deal.
primeomega

join:2004-03-11
De Pere, WI

Re: Monkey (ATT) see, Monkey do (Verizon)

sounds like a deal, let leap get some of the footprint...then wait a few years and come in and buy leap. att knows the game well.
RDC17

join:2011-05-15
Baltimore, MD

Jobs! Jobs! Jobs!

If the deal falls through than the Obama administration will have done their best to kill T-Mobile. I have a sinking feeling that DT may decide to say f-it and start selling off chunks of T-Mobile USA. The deal would have killed some jobs, but many more could be lost of DT throws in the towel.

fuziwuzi
Not born yesterday
Premium
join:2005-07-01
Atlanta, GA

Re: Jobs! Jobs! Jobs!

Oh please. AT&T would have sh**canned thousands of high-paying jobs and outsourced many more. Their promise to bring back 5000 jobs was only in the minimum-wage call center. That's how AT&T operates, always has. All you have to do is look at AT&T's history.
--
Teabaggers: Destroying America is Priority #1
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS

move on...

AT&T needs to start spending the money they were SUPPOSED to spend upgrading Bell South and upgrade the wireless network. If Verizon was good enough to bet the enitre company on FIOS and LTE, then it's good enough for AT&T-- just make wise cherry picked upgrades to EARN customer loyalty not buy customers with a merger.

The merger is dead before the ink was dry.
jfmezei
Premium
join:2007-01-03
Pointe-Claire, QC
kudos:22

The goal may be to ruin TMobile

Perhaps's AT&T's real goal is to make T-Mobile so unattractive that nobody buys it as a whole.

And knowing that AT&T's purchase would be refused, AT&T then turns around and offers to dismember T-Mobile, keep a few bits to itself so it can claim victory (and avoid the $4b penalty) and make sure nobody gets any significant bits of T-Mobile.

Say AT&T breaks it up and sells parts to itself, parts to Sprint, parts to MetroPCS etc. This way, nodody gains any competitive advantage. And this protects the Verizon-AT&T duopoly.

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