New CWA Report Challenges Critics of AT&T/T-Mobile Merger

The AT&T/T-Mobile Merger, "will enable AT&T to build a more efficient next-generation high-speed wireless network more quickly in more places and improve service quality more expeditiously than either AT&T or T-Mobile could do separately."

That's the conclusion of a new, comprehensive report by CWA, "Blocking The AT&T/T-Mobile Merger will Harm Consumers, Communities and the Economy," which responds to critics of the proposed merger. Released October 7, the report highlights the numerous benefits and merger-related efficiencies, strongly recommends that the DoJ resolve merger-related issues, so that consumers, workers, and communities can realize the benefits of expanded high-speed wireless broadband build-out and improved wireless quality.

T-Mobile USA's parent company Deutsche Telekom has made it clear it will not provide the funds to move T-Mobile to a next-generation 4G LTE wireless network. Consequently, there is no long-term future for an independent T-Mobile, and a merger with AT&T is the best path forward to put T-Mobile's assets to work to benefit wireless customers and communities hungry for high-speed wireless networks.

As the CWA report notes, AT&T and T-Mobile each have significant capacity problems, owing to lack of spectrum in the case of AT&T and lack of capital for T-Mobile. Yet much of the U.S. is in need of increased wireless access and improvement in quality. And, the answers lie in the proposed merger:

The AT&T/T-Mobile merger will expand capacity and improve service for both companies beyond what they could achieve separately. Significant synergies will result from a combined AT&T and T-Mobile network which enable more available capacity than the sum of the two companies separate networks standing alone.

The merger creates benefits for consumers and communities. It will accelerate and expand deployment of high-speed wireless Internet to an additional 55 million people that would not have received coverage without this combination.

The merger also is the best alternative available to T-Mobile. When parent company Deutsche Telekom decided to sell its T-Mobile subsidiary, the only real bidders were AT&T and Sprint. T-Mobile and Sprint - a ruthlessly anti-union, low-wage employer - use different wireless technologies, posing major integration challenges.

The benefits to the merger are apparent. AT&T has already promised to:

• maintain T-Mobile's existing rate plans
• use its spectrum to create a more efficient network with better service quality
• keep all T-Mobile call center workers employed
• bring back 5,000 jobs from overseas
• expend additional capital to expand its 4G-LTE network to 55 million more people and, in the process, create as many as 96,000 jobs.

Blocking The AT&T/T-Mobile Merger will Harm Consumers, Communities and the Economy (CWA report, Sept., 2011)