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Why AT&T’s deal for T-Mobile must be blocked

marketwatch.com

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Re: Why AT&T’s deal for T-Mobile must be blocked

#2
Mr. Arends makes a very strong argument. And really, if you need a shorthand way to understand this issue, all you need to know is that the Bush Administration stripped away the limits on one company's ownership of spectrum. Republicans talk a good game about the "free market", but it's internally inconsistent talk; you can't have a free market if the number of players in said market gets below a certain level. 4-5 is probably a pretty good guess at what that level is, and in the GSM market, we're now down to 1 player if this deal goes through. Since many customers are forced into choosing GSM for compatibility when they travel, that's an effective monopoly, just like Arends says.

I'm an AT&T customer. But I'm not optimistic about what this deal will mean. I know what it won't mean: cheaper and better service, as guaranteed by a healthy fear of competitors.

Re: Why AT&T’s deal for T-Mobile must be blocked

#3
This quote summarizes the whole issue for me:

Two weeks ago, as it happens, I took my business away from AT&T. The reason? Simple. T-Mobile offered me a better deal.

Lower prices. No two-year contract. And monthy savings because I brought my own phone.

It was a free market. So I moved.

And now, that choice is gone. Sure, you can choose between companies A, B, & C. All of which cost roughly the same, nickel & dime you to death, and make similar efforts to restrict customer freedom.

Did I mention I will theoretically have to pay an extra $50 to use tethering the same way I've been doing since I got T-Mobile?!?

Re: Why AT&T’s deal for T-Mobile must be blocked

#7
The author captures this point perfectly: AT&T and T-Mobile merger will create a "GSM Monopoly" in the American market. This will be bad news for any customer who has to use GSM handsets as Europe, Asia, etc have GSM. So if you ever have to travel internationally you are better off with GSM phones. AT&T must not be allowed to Monopolize this key market.

Re: Why AT&T’s deal for T-Mobile must be blocked

#8
post #6

Yep. AT&T would not even let you use a different smartphone even if you already are on the iPhone data plan! Of course they don't let you use a smartphone without a data plan at all. So this sucks.

They won't? When I got my Nexus One back in april, I just put my iPhone's sim card into my Nexus One and blammo, works fine. Same data plan. Grandfathered in to the unmetered plan, too.

I still hate AT&T more than anything and wish to the silicon gods that I could cut both them and Cablevision out of my life like the malignant tumors they are.

Re: Why AT&T’s deal for T-Mobile must be blocked

#9
I wonder how much of this deal was made with the intention of acquiring T-Mobiles spectrum rights? I'm under the impression that GSM was mainly a technology focused in the time domain, and the newer 4G technologies seem like they're more centered around the frequency domain. It occurs to me that if lack of spectrum is a problem for 1 it is probably a problem for the other, so it would make sense for both carriers to merge?

Re: Why AT&T’s deal for T-Mobile must be blocked

#10
post #7

The author captures this point perfectly: AT&T and T-Mobile merger will create a "GSM Monopoly" in the American market. This will be bad news for any customer who has to use GSM handsets as Europe, Asia, etc have GSM. So if you ever have to travel internationally you are better off with GSM phones. AT&T must not be allowed to Monopolize this key market.

Everyone is moving to LTE, so this really doesn't sound like a huge deal, at least in the medium-to-long term. You will be able to get LTE from AT&T/T-Mobile, Sprint, and Verizon, at least.
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