Verizon Chief Defends AT&T-T-Mobile Merger

The proposed merger of AT&T with T-Mobile doesn't impress everyone as a good idea; in particular, Sprint has filed suit to stop the merger, and while hardly a disinterested party, they're not alone in claiming that the resulting megacompany would harm customers. Verizon is taking a different tack; tekgoblin passes along this excerpt: "Verizon Communications chief executive Lowell McAdam has announced that he is supporting the AT&T T-Mobile merger. He warned that the Government has no choice but to let the deal go though unless they want to fix the current spectrum problems. He went on to say 'We need to be very thoughtful on what the impacts would be to the overall industry if this is a way to regulate the industry without actually passing regulation.' The current telcos need more wireless spectrum to continue expanding and operating efficiently so they have resorted to acquiring other companies."

Translation

[GameboyRMH]

We're ready for less competition! Bring it on!

Lowell should read the news more often

[MetalliQaZ]

Looks like he hasn't been keeping up with the latest reports; indicating that AT&T is secretly trying to SELL spectrum to smaller operators in order to get support for the merger. Sounds like they have plenty already. (this was discussed on /.)

This makes perfect sense

[dkleinsc]

It would give Verizon the go-ahead to gobble up Sprint in, say, a hostile takeover, leaving only AT&T and Verizon on the playing field. A 2-company oligopoly can price gouge more easily than a 4-company oligopoly.

Re:Translation

[AngryDeuce]

It surprises me that these corporations don't just say stuff like that at this point. They own our government, and the vast majority of people don't even give a shit. Why be coy? There are no repercussions anyway.

it is good for Verizon

[Anonymous Coward]

It is good for Verizon, because it gets rid of another competitor. They can raise rates more without another decent competitor to keep them in check.
They also figure, probably rightly so, that a lot of TMobile customers will leave when it happens, giving Verison more.
Then ATT will continue doing the only thing they know how to do, and that is to keep getting worse than they already are, which will drive even more customers away with fewer competitors for them to go to.
More and more customers for Verizon all around, with higher and higher rates.
Win win.

Re:Proof they need more regulations

[Xacid]

Never trust industries to regulate themselves when it comes to anything.

FTFY

Spectrum is not what's holding AT&T back

[ktappe]

AT&T has plenty of spectrum. What they don't have is connective infrastructure. I constantly have AT&T signal but data just won't go through because the towers' routers are overloaded. AT&T needs to take the billions it is trying to spend buying T-Mobile to add bandwidth.