Print
AT&T recently filed a public interest statement with the FCC on its proposed T-Mobile acquisition, and in the process of doing so, comes out and says (in not so many words) that its network is ill equipped to handle Apple's iPhone, let alone the barrage of new smartphones and tablets on the horizon. Why would AT&T admit something like this? Let's have a look at the filing.
"A smartphone generates 24 times the mobile data traffic of a conventional wireless phone, and the explosively popular iPad and similar tablet devices can generate traffic comparable to or even greater than a smartphone," AT&T wrote in the filing (PDF). "AT&T's mobile data volumes surged by a staggering 8,000 percent from 2007 to 2010, and as a result, AT&T faces network capacity constraints more severe than those of any other wireless provider."
AT&T, you might recall, secured exclusive rights to Apple's iPhone back in 2007, the year that AT&T says kicked off its 8,000 percent mobile data growth. AT&T's angle to the FCC is that the problem will only worsen with time, so it should be allowed to purchase T-Mobile as planned, as it would be the in the best interest of everyone.
"[The T-Mobile] transaction will thus benefit consumers by reducing the number of dropped and blocked calls, increasing data speeds, improving in-building coverage, and dramatically expanding deployment of next-generation mobile technology," AT&T says.
These benefits will come within nine months upon network integration, AT&T claims, and will double the amount of network traffic that can be carried.
If you were playing the part of FCC, what would you do? Does AT&T present a compelling argument, or should the deal be blocked?
Image Credit: Joshua Piersanti (piersantidesigns.com)
Comments are closed on this article
davzway
April 27, 2011 at 11:45am
YEAH, POOR OLD AT&T.... AS A FORMER CORPORATE 2 CUSTOMER (75+ PHONES) FOR 14 YEARS AND AFTER A BRIEF NEVER TO BE REPEATED STINT WITH SPRINT ( I'D DO WITHOUT BEFORE GOING TO SPRINT FOR SERVICE) AND VERIZON WHO CANNOT SERVICE MY LOCATION, AM AGAIN AN AT&T CUSTOMER. AT&T SHOULD HAVE BEEN INVESTING IN EQUIPMENT TO CARRY THE LOAD FOR THE CUSTOMERS THEY OBTAINED WITH THE iPHONE.. CUSTOMERS WHO HAVE BEEN PAYING AT&T FOR THE A+ SERVICE THAT'S PROMISED AND MOSTLY UNAVAILABLE.
NOW AT&T WANTS TO BUY T-MOBILE TO SOLVE THE SERVICE PROBLEM FOR THE INCREASED USAGE FROM ALL THOSE CUSTOMERS THEY HAVE GAINED, SAYING IT WILL BE A GOOD THING FOR THE PUBLIC AND SOLVE THEIR CUSTOMERS PROBLEMS. ... " HORSE DEW PUCKY " ....
LACK OF COMPETITION, WITH BIG COMPANIES BUYING OUT ALL THE COMPETITORS SO THERE IS ONLY TWO OR MAYBE THREE CHOICES, IS NEVER GOOD FOR THE CONSUMER, NEVER HAS BEEN. NEVER WILL BE.
FCC SHOULD TURN THEM DOWN COLD. AT&T SHOULD BE FORCED TO INSTALL EQUIPMENT SO THEY WILL PROVIDE THE SERVICE THEIR CUSTOMERS ARE paying, READ THAT... PAYING FOR WITH THEIR MONTHLY FEES FOR THE iPHONE. IF AT&T DOESN'T WANT AND CANNOT PROVIDE SERVICE , THEN APPLE SHOULD EXPAND iPHONE SELLERS TO INCLUDE ANY CARRIER THAT WANTS TO SELL THEIR iPHONE, ALLOWING CUSTOMERS TO GO TO T-MOBILE TO GET THE SERVICE THAT AT&T CANNOT PROVIDE. < FOR THE RECORD, WHEN MY CONTRACT IS UP I'M GOING TO T-MOBILE FOR CELL SERVICE >
LIKELY AT&T WILL WIN OUT WITH BIG MONEY, BUYING VOTES AND OPINIONS AND GETTING APPROVAL FROM THE GOVERNMENT <<THEY ARE NOT HONEST, MONEY BUYS A LOT OF INFLUENCE IN WASHINGTON >> HOWEVER, DON'T EVER BELIEVE AT&T'S STORY THAT IT'S GOOD FOR CONSUMERS. REPEATING MY OPINION " HORSE DEW PUCKY " , THE DEFINITION OF WHICH IS SOMETHING LEFT BEHIND BY HORSES THAT LOOKS LIKE A PUCKY AND STEAMS IN THE MORNING DEW.... IF YOU STILL DON'T GET, ASK SOMEONE. WHEN IT GETS TO THE POINT OF NO COMPETITION THEN THE CELL PHONE INDUSTRY WILL BE 'FUBAR'. davzway
bling581
April 26, 2011 at 10:18am
I don't buy it. If the merger goes through they will expand and continue to give the same crappy service, just to more people. I would like to see their traffic numbers compared to Verizon who is obviously not sharing the same issues. They can try and blame it on iPhone traffic but Android is just as or more popular and isn't pinning Verizon down.
Xaero429
April 26, 2011 at 2:01am
I had at&t for about 6 months, and the shitty phones they sold me in the store both stopped working. I called their customer service, and they offered to give me new phones, but it was the exact same phone. Why on earth would i want the same shitty phone that's just going to break again in half a year. Not only that, but i had dropped calls, and the internet on the phone worked about 20% of the time. At&T is just a shitty company all around, and instead of using the billions of dollars they are raking in every year from selling their shitty phone service and iphones to all the no brain hipsters, and mindless zombies that just have to have the newest tech regaurdless of whether they use it, they spend it on stupid advertising instead of building the towers needed to support all the stupid iphones. I would expect this kind of mistake from a startup company, but at&t has the money to pay the people that tell the idiots running the company "You need more towers, you can't handle the data traffic the iphones are using". But now they are using the steve jobs patented "blame it on an algorithm excuse", and i hope the people that can shut this deal down don't fall for it. More than likely they all have iphones though.
WERA689
April 25, 2011 at 2:49pm
I agree. I'd rather see AT&T spend that money on improving their network than absorbing another competitor. The trend towards bigger and bigger entities has not helped the financial sector, and resulted in the "too big to fail" scenario that still has people pissed off. The Mobile market affects far more people far more directly every day, and I'm dead set against allowing AT&T to grow any larger than they already are. When their size is something they can manage on their own, I'll revisit my opinion; but for now, it's the wrong way to go! And I say this as an ATT Mobile customer who's been on board through 3 acquisitions: BellSouth Mobility>Cingular>AT&T. Enough already!
Orlbuckeye
April 25, 2011 at 11:05am
got the Apple exclusive Iphone that the Iphone was going cause this issue. I don't think they would have offered the unlimited data plan from the beginning. It's just as HP didn't know when Woz showed them the Apple I (which they laughed at because few thought computers would ever be a device in the home). I've had AT&T since before the Razr and there was no data. Even more argument is that it was projected that the Motorolla Zoom would challenge the Ipad but that hasn't turned out. I think that AT&T acqusition of T-Mobile will help the industry to move to the next level of data taransmission speeds and as long as Verizon exists there will be competion and will be a benefit for the industry as a whole. I feel short term the t-mobile customer will suffer a bit but long run benefit long term.
deadsenator
April 25, 2011 at 1:38pm
Incorrect. Are you a zombie? Sprint's coverage for me is terrible. So, I get two choices of cellular service? How is this fair? There should be more than three or four as it is. Where is this competition to drive down prices? T-Mo is one of the last services that offers reasonable plans. They also don't cough up customer information at the drop of a hat.
As a T-Mo subscriber, if I am forced into being a customer of AT$T, I will leave. Nearly everyone I know on AT$T hates them. I will not want to be a part of their expensive, capped and poorly covered network. Any paperthin argument that they have to show that the acquisition is a good idea, should be scrutinized heavily. I won't trust a word they say.
The money spent buying T-Mo can be used to bone up their own infrastructure. It's really about buying up a customer base and being the biggest kid on the block. AT$T is nicely re-establishing themselves as a monopoly in the wireless arena.
If this goes through, Verizon will get a new customer in me.
MPC - Please make the Facebook button opt-in, not opt-out or get rid of it altogether. Facebook sucks.
Skrýmir
April 25, 2011 at 4:44pm
T-Mobile is a company with horrible customer service and sales driven by Comissions paid to employees for ripping off and lieing right out to Customers about Deposit Refunds, Waived activation fees, ect. These are things i heard from a T-Mobile Manager of all people, T-Mobile's prices on Smart phones were great i do admit, but this is a network that my friend can't get reception in his house that's on top of hill, in an area where there's supposedly full coverage. Honestly i think that AT&T is making a mistake aquiring T-Mobile, they'll be aquiring a lot of T-Mobiles problems, a long with spotty national coverage, which is something they already have.
RET_ARMY
April 25, 2011 at 8:13am
They should have thought about that before they took on the iPhone. Ya, all those people will flock to buy the iPhone, we can worry about the network later. Money now, worries later.
CTskifreak
April 25, 2011 at 8:03am
As a T-Mobile subscriber, I am not sure what I want when it comes to this deal. I'm on a family plan (college student) that was grandfathered in because it is not offered any more. I was looking at (hopefully) getting a Galaxy S II, but now I'm not sure what is going to happen. I'm worried that my rates will go up, and if I go for the GS2, my data plan will be limited.
Blues22475
April 25, 2011 at 7:49am
I agree. When I hear new that they are capping their DSL service, then they say, indirectly, that their cellular networks can't handle things like iPhone this makes me think they aren't capable. Expand your networks and stop trying to penny pinch so much.
In light of all this, I am considering switching my Internet provider and Cellular network provider.
HiGHRoLLeR038
April 25, 2011 at 7:01am
ATT should just stop whining and expand their network. so theyve seen a huge increase in data traffic....then build more towers and backbone infastructure! i dont understand how they get to the top without upgrading their technology. support your damn customers! wake up att! you advertise how awesome you are, and yet you state to the fcc that your network is shit.
graydiggy
April 25, 2011 at 3:42pm
It would cost triple the amount of buying T-mobile to expand their own stuff and build new towers. I find what they are doing reasonable. They are expanding. Like any other company out there. If they can buy another company, let them. It saves money in the long run and helps both current AT&T and T-Mobile customers by increasing coverage. So what if they get more money. How would you expect them to just build more shit? It would take years, a shit ton more money, and they would have to pay other companies to build their new stuff. They are going on a more costly and eco friendly route to better service and better business.
The_4th_Horseman
March 25, 2012 at 12:01am
You are majorly indoctrinated. If they do a merger then there will be 2, count 'em TWO, major cell providers. Do you have ANY idea what that will do to prices? Hint: THEY WILL SHOOT THROUGH THE ROOF. Prices are bad enough as it is. In addition, T-mobile is the ONLY major provider that still offers unlimited data. If they get bought out then we are stuck with data caps and have absolutely no way out, unless you want to riot, maybe firebomb the other major cell providers, but that would be kind of counterproductive I think. And better service? YOU MAKE ME LAUGH. If they are not willing to upgrade their equipment to provide better service BEFORE they buy more then what makes you think they will spend MORE money upgrading MORE equipment? Their problem is obviously hardware based. Adding more of the same wont help much if any, they will only see minor increase in coverage and more of the same crappy network that cant handle the amount of data passing through it.
EDIT: I know its about a year after this thread was posted but dopey people who believe in monopolies irk me.
