AT&T and T-Mobile Merger May Get Derailed by Government Intervention

25 Mar

Government: Economies of scale? What's that? Now pay us our higher-than-private-sector salaries!

 

Some officials in the FCC are hinting that this deal might not happen.

So let me get this straight… We have been told that high-speed internet access, mobility, and infrastructure upgrades will help us compete with emerging economies in the 21st century. If this merger goes through, AT&T’s network will be vastly improved and upgraded immediately. T-Mobile uses the same GSM network and has already spent billions on upgrades for its 4G LTE network. More importantly, T-Mobile has focused its upgrades in smaller cities and remote areas. This goes hand-in-hand with President Obama’s plan to provide high-speed internet access to ALL Americans. Perhaps Mr. Obama meant that he wants inefficient government employees and contractors to do the work at a high cost to taxpayers?

We know the arguments. The economic leftists are worried about a lack of competition. Last time I checked, the only mobile companies that are keeping each other in check are Verizon and AT&T. Though T-Mobile and Sprint are technically competitors, they get the table scraps and hardly break even. Mobile phones and internet connectivity are becoming mainstays in our lives. With the launch of successful tablet computers, there is going to be a staid demand for virtual access. While T-Mobile will try to chip away at a segment of its larger rivals’ base, they will always be one step behind and will ultimately have to rely on Verizon and AT&T to supplement its own coverage (for a considerable fee).

By merging, AT&T will be able to supplement an already growing 4G LTE network with T-Mobile’s existing small-city and rural centered infrastructure. Can you imagine the savings? Putting up cell phone towers sounds easy enough. Add property costs, zoning, environmental assessments, fake health concerns, and b-list celebrities in Brooklyn, and the next thing you know, AT&T is paying much more money than it projected for upgrades. The lefties will say that AT&T can afford to pay for it from their profits. For those of use that actually have the ability to pay our phone bills, we know that the cost will be passed on to us.

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