Jordan Crook studied English literature at the University of New York before entering the tech space. Prior to joining TechCrunch Crook dabbled in mobile marketing and mobile apps, as well as doing reviews for MobileBurn and MobileMarketer. Kruk, fascinated with the production of alternative sources of energy and greentech. It is currently a writer for CrunchGear. ? Read More
Partially edited letter dated AT&T lawyers FCC officials was accidentally posted on the FCC Web site today, and it shows quite a bit of AT&T in the strategy for its proposed acquisition of T-Mobile. Unfortunately for has come and gone on the Web site, but the folks over at wireless week removed some comments for us.
Here's the thing: AT&T person heavy competition, because it is the largest competitor, Verizon, carries out its LTE network much more quickly. Verizon has plans to build its network to the point where it will cover up to 97% of the population, and the expansion is already underway. AT&T in the original plan (without T-Mobile) available only for 80%, and the company to receive its first set of rolling. So Verizon is not only faster, but it also covers more land.
According to wireless week, a letter from the AT&T lawyers in FCC gives us our first look at how much it will cost AT&T to match Verizon planned LTE footprint, the company had not decided to buy T-Mobile. It will blow your mind, so be ready. The price of expanding its coverage of LTE in rural areas would have cost AT&T $ 3.8 billion. But the letter also said that the price of $ 3.8 billion and the speed with which you want to deploy the AT&T made that impossible.
"AT&T senior management that, if the AT&T can find a way to expand its LTE footprint on a much more cost-effective, detailed LTE up to 80 per cent of the population of the United States the most, can be justified," the lawyer Richard Rosen AT&T said.
Nevertheless, wanting to throw down a staggering 39 billion swallow up T-Mo and get that 97 per cent of the foot print up and run AT&T. confused? It is perfectly understandable. Let's parse through it together will?
Although it's not quite as bad as it looks, it's still not good. Rosen isn't just straight up lying when he said that AT&T requires cost route to implement their plans LTE. These media should carry out a $ 3.8 billion-ish, to bring the coverage of rural areas. The problem is that there are way more towers for an Assembly, each of which covers a much fewer people than in urban areas. This means that the return on investment is not nearly that AT&T would like to see it.
Wireless Week talked with ABI Research Analyst Phil Solis, who seems to understand where from Rosen and AT&T. "you really get diminishing returns," he said. "They make a case if they can buy T-Mobile, they will have so many benefits, that they will be able to afford the extra volume. This would help. "but that doesn't change the fact that end users will stay with the duopoly. What is best for AT&T not what is best for everyone, and that the FCC and the Justice Ministry work, make sure that the public interest to protect at any cost, even $ 3.8 billion from AT&T.
It is interesting that letter shows that AT&T has decided to spend that $ 3.8 billion at the beginning of January. But according to Bloomberg, Sprint potentially could negotiate with Deutsche Telekom for the same period, with their own plans to buy T-Mobile. 8 March, Bloomberg reported that numerous sources familiar with the matter confirmed that Sprint and Deutsche Telekom in the disable and enable "meetings on the question of the possible merger of T-Mo is quite possible that these conversations launched in January or even earlier, and Bloomberg only Wind at the end of the tail.
If so, may have tried to put AT&T $ 39 billion premium just keep T-Mo Sprint unachievable, citing costs to cover his tracks. I'm not an economist and will not be able to understand if AT&T would actually save money by paying $ 39 billion t-Mo instead of $ 3.8 billion to build its network. But it seems a bit shady, no?
AT&T strongly denies that any new or suspicious information has been released with leakage. "There is no real news here," said Margaret Bowles AT&T said in a statement. "Confidential information in the last letter is consistent with AT&T in previous applications. It demonstrates the importance of our determination to build out 4 G LTE Mobile Broadband up to 97% of the population after our merger with T-Mobile. Without the merger AT&T can't do this extended obligation. This merger will unleash billions of dollars in much-needed investment, creating many thousands of well-paying jobs, which are vital in view of our weakened economy ".
There is really no way to know for sure, we must believe. The only thing we can do is hope that this leak puts a little extra pressure on the FCC and DOJ really carefully consider the matter put before them.
T-Mobile is a mobile telephone operator headquartered in Bonn, Germany. It is a subsidiary of Deutsche Telekom. T-Mobile has 101 million subscribers, making it the sixth largest mobile worlds ...
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