Comments on: Today’s Video Byte: AT&T… & T … Parody http://www.shebytes.com/2011/09/02/todays-video-byte-att-t-parody/ Tech Blog: Technology trends for men and women, from a woman’s perspective. Renee Schmidt, editor. Wed, 17 Apr 2013 15:30:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Renee Schmidt http://www.shebytes.com/2011/09/02/todays-video-byte-att-t-parody/#comment-625 Renee Schmidt Fri, 02 Sep 2011 22:49:14 +0000 http://www.shebytes.com/?p=3531#comment-625 There are looming questions about the future of T-Mobile.  T-Mobile's corporate parent, Deutsche Telekom, wants to get out of the United States.  T-Mobile is stuck in its biggest profit slump in almost a decade; with profit declines in four of the past five years, plus losing more than a half-million subscribers in 2011 alone.  The company needs to satiate shareholders and this merger would have accomplished that.  Can T-Mobile carry on as a standalone company? That’s unclear. So while T-Mobile’s parent will get over $6 billion from AT&T if the deal unravels, it may be forced to offer T-Mobile USA to another bidder for an estimated $12 billion less than its current agreement. That’s because no other buyers would offer to pay as much as AT&T because the two carriers use the same network to deliver service.  So the company is worth less to a rival with an incompatible network.  T-Mobile USA just isn't worth as much to any buyer other than AT&T. Consider the job losses if T-Mobile goes under, among other things. Additionally, the merger would increase network capacity for AT&T right away, allowing it to roll out 4G nationally at a much more rapid and economic pace, which would spur innovation and growth in our economy --something the Obama administration is pushing for. Suffice it to say, there is a lot more at stake here than merely the potential for an increased phone bill. There are looming questions about the future of T-Mobile.  T-Mobile’s corporate parent, Deutsche Telekom, wants to get out of the United States.  T-Mobile is stuck in its biggest profit slump in almost a decade; with profit declines in four of the past five years, plus losing more than a half-million subscribers in 2011 alone.  The company needs to satiate shareholders and this merger would have accomplished that.  Can T-Mobile carry on as a standalone company? That’s unclear.

So while T-Mobile’s parent will get over $6 billion from AT&T if the deal unravels, it may be forced to offer T-Mobile USA to another bidder for an estimated $12 billion less than its current agreement. That’s because no other buyers would offer to pay as much as AT&T because the two carriers use the same network to deliver service.  So the company is worth less to a rival with an incompatible network.  T-Mobile USA just isn’t worth as much to any buyer other than AT&T.

Consider the job losses if T-Mobile goes under, among other things. Additionally, the merger would increase network capacity for AT&T right away, allowing it to roll out 4G nationally at a much more rapid and economic pace, which would spur innovation and growth in our economy –something the Obama administration is pushing for. Suffice it to say, there is a lot more at stake here than merely the potential for an increased phone bill.

]]> By: Wes M http://www.shebytes.com/2011/09/02/todays-video-byte-att-t-parody/#comment-624 Wes M Fri, 02 Sep 2011 22:41:15 +0000 http://www.shebytes.com/?p=3531#comment-624 You must be out of your mind to think that the merger will benifit anybody except atnt stock holders. Those 5000 jobs you speak of are not "new" jobs. Actually all they are saying is we will take 5000 tmobile workers and bring them over to atnt to work. Completly is a bunch of BS they are feeding the pulic. Don't fall for atnt's tricks or the way they word what they say. There is no way the fcc or whoever let this happen since it mean atnt and verizon will control 80% of the industries customer base. You must be out of your mind to think that the merger will benifit anybody except atnt stock holders. Those 5000 jobs you speak of are not “new” jobs. Actually all they are saying is we will take 5000 tmobile workers and bring them over to atnt to work. Completly is a bunch of BS they are feeding the pulic. Don’t fall for atnt’s tricks or the way they word what they say. There is no way the fcc or whoever let this happen since it mean atnt and verizon will control 80% of the industries customer base.

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