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Justice Dept. Files Antitrust Complaint Against AT&T and T-Mobile Merger
Hitting the front page for the first time, AngryDeuce writes with a piece of exciting news hot off the news wire. From the article: "The Justice Department is blocking AT&T's $39 billion deal to buy T-Mobile USA, saying the acquisition of the No. 4 wireless carrier in the country by No. 2 AT&T would reduce competition and raise prices. The deal has faced tough opposition from consumer groups and No. 3 carrier Sprint since it was announced in March."
The DOJ has released a full statement on their decision to file the antitrust suit, and AT&T has drafted a response. So much for AT&T's paltry promise of bringing 5000 unskilled call center jobs back to the U.S. if the merger were approved. Competition may yet live!
Their "5000 jobs" claim seems to belong in the same pile as the "Give us $100 million to build a stadium, and we promise to hire 6 hotdog vendors and a janitorial team!" arguments that get trotted out every time a pro sports team shakes down a municipality to build their business infrastructure for them... These sorts of things are so openly cynical and insultingly paltry that I'm honestly not sure why anybody even bothers pretending...
The one thing Sprint could possibly bring to the table in a merger with T-Mobile if they didn't completely botch it is (theoretical) compatibility with international UMTS frequencies.
International UMTS uses 1900MHz for uplink, and 2100MHz for downlink (give or take a few MHz)
T-Mobile bought 1700 & 2100Mhz licenses during the AWS auction. They have very little 1900MHz spectrum, and it's all used by GSM voice and 2/2.5G data.
With a little creativity, Sprint could start repurposing 1900MHz spectrum currently used for EVDO to UMTS uplinks, and start shipping phones like the ones used in Canada that use CDMA for voice, but UMTS for 3G data. There wouldn't be any compatibility problem with pre-existing T-Mobile UMTS phones, because AFAIK, every UMTS phone ever sold by T-Mobile can do 1900/2100 UMTS in addition to 1700/2100 UMTS. There might be some temporary bandwidth crunches for EVDO, but if they got their act together quickly and shifted all new Android phones to 1900/2100 UMTS (falling back to 1900MHz EVDO only where 1900/2100 UMTS didn't exist), and simultaneously improved their 4G network options, the problem would largely solve itself within a year or two as heavy data users dumped their old phones and bought new ones within a year or two anyway.
The problem is, Sprint completely fucked up the merger with Nextel, which kind of casts doubt on their ability to merge a 1900MHz CDMA2000 network with a 1900MHz legacy GSM network, a 1700/2100MHz UMTS network, and a 2.6GHz WiMax (soon to be LTE) network. If they could manage to avoid completely screwing up T-Mobile's existing network in the process, it would put SprinT-mobile in a unique position among American carriers -- they'd be the one carrier capable of providing UMTS on international frequencies within the United States. For that reason, I'd prefer they both remain separate. But if anyone has to merge, Sprint and T-Mobile would probably be the least of all evils. Especially if Google ended up buying both of them to keep Sprint from physically screwing up T-mobile's network along the way.