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AT&T Issues Scathing Response To FCC Report

An anonymous reader writes "AT&T has issued a scathing letter in response to the FCC's decision to release a staff report on its findings surrounding AT&T's planned $39 billion acquisition of T-Mobile USA. 'We expected that the AT&T-T-Mobile transaction would receive careful, considered, and fair analysis,' Jim Cicconi, AT&T Senior Executive Vice President of External & Legislative Affairs, said. 'Unfortunately, the preliminary FCC Staff Analysis offers none of that.'"

27 of 215 comments (clear)

  1. Unimpressive. by fuzzyfuzzyfungus · · Score: 5, Insightful

    I'm pretty sure that AT&T's response is simply a toddler's temper tantrum with a midlife crisis and an expensive suit.

    1. Re:Unimpressive. by sneakyimp · · Score: 5, Funny

      Yeah they can use that $39B to pay for a gigantic waaaaahmbulance.

    2. Re:Unimpressive. by surgen · · Score: 5, Interesting

      You took the words from my mouth, the last few days the only impression I've been getting from AT&T is one of a crybaby.

      My favorite part of TFA was Sprint's comment, they're basically using fancy words to point and laugh.

    3. Re:Unimpressive. by Fjandr · · Score: 5, Insightful

      Yup. The only reason they withdrew their application is so that the report would not be published. They're pissed because their ploy didn't work.

  2. say it often enough, it starts to sound true by lambent · · Score: 5, Insightful

    at this point, i wonder if AT&T has actually bought its own story, or if they have to practice keeping a straight face in the mirror every morning.

  3. Two megers away from "The" Cell Phone Company by LostCluster · · Score: 5, Insightful

    AT&T buying T-Mobile is a bad thing for consumers. The original cell phone plan was that there would be two providers, the local Ma Bell and a start-up. AT&T as SBC bought up the East Coast start-ups, Verizon bought the West Coast ones, and T-Mobile and Sprint came to the party as national big-city carriers on at the time open space adjustments.

    AT&T of the 1980s was busted up as a monopoly. If AT&T is allowed to have T-Mobile, what's stopping Verizon and Sprint from joining up? Less competitors always leads to higher prices. Anybody remember what cellphones cost in the early 1990s?

    1. Re:Two megers away from "The" Cell Phone Company by scot4875 · · Score: 5, Insightful

      AT&T of the 1980s was busted up as a monopoly. If AT&T is allowed to have T-Mobile, what's stopping Verizon and Sprint from joining up? Less competitors always leads to higher prices. Anybody remember what cellphones cost in the early 1990s?

      Look, I'm not going to argue that we shouldn't prevent a cell phone service monopoly, but using the cost of cellphones in the early 1990s as an argument against it isn't even remotely valid.

      Computers cost upwards of $2k for a typical desktop in the early 1990s and there were *way* more PC manufacturers back then (remember Computer Shopper magazine?). One could just as easily say "More competitors lead to higher prices. Anybody remember what PCs cost in the early 1990s?" and be equally wrong.

      --Jeremy

      --
      Jesus was a liberal
  4. Make sure to read the bottom of the page by mysidia · · Score: 5, Informative

    For Sprint's short and sweet response, compared to ATT's long-winded vague casting of aspersions against the FCC staff.

    The FCC staff’s Analysis and Findings provide a careful, substantive analysis of AT&T’s proposed takeover of T-Mobile, consistent with the FCC’s role as the independent, expert agency responsible for such merger reviews. Rather than accept the expert agency’s Analysis and Findings, AT&T has chosen to make baseless claims about the FCC’s process. [...]

    1. Re:Make sure to read the bottom of the page by DiabolicallyRandom · · Score: 5, Insightful

      Lol - I just love this whole thing. ATT is like the giant internet forum troll, throwing a temper tantrum because they got banned from the forums, and sprint is like the even keeled bystander, explaining to the banned individual why trolling is wrong.

    2. Re:Make sure to read the bottom of the page by Baloroth · · Score: 5, Interesting
      You forgot the, IMO, best part:

      We agree with AT&T on one point however: the public should read the Analysis and Findings on AT&T’s proposed takeover.

      --
      "None can love freedom heartily, but good men; the rest love not freedom, but license." --John Milton
    3. Re:Make sure to read the bottom of the page by Baloroth · · Score: 5, Insightful

      The main problem I see with what you say is this: very few people believed the AT&T-T-Mobile merger was a good thing before the Analysis. I only skimmed it briefly, but it seemed to approach the issue from the point of view that the onus is on AT&T to show that the merger is in the public interest, and not just AT&Ts (which they seem to grant.)

      The "commitments" of a company with AT&T's history are worth less to me then the photons my screen used to display them to me. It should come as no surprise that the report is unbalanced: the truth is this merger is a bad idea, at many levels. If AT&T wants it to go through, they basically need to show that both companies absolutely needed it. The report seems to say they didn't show that, but only made broad claims.

      In other words, the FCC is calling AT&T liars, and I agree. AT&T doesn't like that, and their response is laden with innuendo and falsities. For example, "The document is so obviously one-sided that any fair-minded person reading it is left with the clear impression that it is an advocacy piece..." So if you don't agree with AT&T's interpretation, you clearly aren't "fair minded." Yeah, that sort of language is only going to make me like you even less. If they really have valid points, fine. But even if they do, using that language is going to make me discard it as manipulative marketing.

      Add in the fact that AT&T tried to withdraw the merger application so the report wouldn't be made public, and it really is a poor showing overall for AT&T.

      --
      "None can love freedom heartily, but good men; the rest love not freedom, but license." --John Milton
    4. Re:Make sure to read the bottom of the page by Colonel+Korn · · Score: 5, Insightful

      I disagree. I'm no lover of AT&T, I got screwed by them once on international calls and had to fight for a couple of months to get my money back. This was at a time when money was in really short supply, and the $500 or so that I had to get back would have made a big difference. If you actually read FCC's Analysis, and look at what AT&T disagrees with, you can't but agree with AT&T. Their rebuttal is backed by facts, and an hour of googling later you will see for yourself that they are certainly right in the issues they have enumerated. I would have personally really wanted AT&T's response to turn out to be made up shitty troll, but it turns out not to be so.

      Sprint's "short and sweet" response turns out to be completely unfounded. It essentially translates to "yeah, yeah, we don't like AT&T either, kudos to FCC for sharing in our dislike". FCC did a pathetic job in their Analysis, that's all there's to it.

      Calling AT&T's response "scathing" is uncalled for. We have a saying in Polish: the truth stings you in the eyes. As far as I'm concerned, the submitter takes "factual" for "scathing". It's silly. People often take a defensive stance when presented with facts that clearly contradict whatever they previously claimed, so I can at least understand the psychology in the mostly negative reaction to AT&T's rebuke to FCC. What I don't get is why people side with FCC without spending the time necessary to verify the sources. It only takes a couple of hours.

      It sounds like you only read the rebuttal and didn't consider the context. In this case the context is reality. The assertions AT&T makes and the way they try to cherry pick their issues just don't jive with reality. Even if they can factually tell us that they'll create N jobs in the U.S., that doesn't mean it's a good thing when independent analysis done months ago (and common sense) concluded that in addition to creating those N jobs they'll be eliminating 3N jobs.

      --
      "I zero-index my hamsters" - Willtor (147206)
  5. Re:Newsflash! by Anonymous Coward · · Score: 5, Funny

    Hell, even the UN's firmly worded letter get's them nowhere :|

  6. Re:Money by ProfM · · Score: 5, Informative
    Yeah right.

    Open Secrets classifies the corporation as a fence sitter when it comes to politics, although during the 2008 presidential election, Barack Obama was clearly the telco's favorite.

    http://www.dslreports.com/shownews/ATT-Top-Campaign-Contributor-Since-1990-110351

  7. That's a rude response by Anonymous Coward · · Score: 5, Insightful

    They should break that company up again, it seems the first time wasn't enough to curb their arrogance.

    1. Re:That's a rude response by TexVex · · Score: 5, Interesting

      I had been using smartphones for over four years, until just recently. I had an iPhone for two years, and before that I used a Pocket PC that could do everything an iPhone could do except it didn't have such a slick interface. All that time, I had a basic voice package and a decent data plan.

      Recently (tough economic times and all) I decided to really have a look at what I was paying for and what I was getting. I found out that more of my "rollover minutes" simply decayed after non-use than I ever actually used. I never used more than 20% of my "evening and weekend" minutes. I never used more than 10% of my Internet bandwidth cap.

      Basically, I was paying $85 or so per month and letting most of the value of it go to waste.

      So, I switched to pre-paid TracFone. I bought a decent Motorola that has a touchscreen and a decent collection of features. I lost GPS navigation, but that's ok because I have a GPS in my car now. Other than that, I can still talk, text, browse, play games, and anything else I could do before.

      The phone came with a "triple minutes for life" deal. Basically, that means that so long as I use that same phone, I buy my pre-paid minutes at $0.047. If I browse the Web, it charges me for the time in minutes, instead of metering my bandwidth. Text messages are about 1.5 cents apiece to send and receive.

      And all of it goes over AT&T's network. I have the same service provider as before. Same signal quality. Same Internet bandwidth.

      Another thing I did was invest $30 in a decent headset for my computer. When I'm at home, I now use Google Voice to make outgoing phone calls. I get great sound quality and don't pay a penny for it. These are my new "evening and weekend" minutes...

      I paid $90 for the phone, and I charged it up with a little under 1300 minutes at a price of $60. That was 2.5 months ago. I still have 430 minutes remaining. That basically means I'm using my phone for a hair under $16.50 per month now. That's a savings of about $70 per month. The cheaper service has already paid for the phone. Anybody want to buy a used iPhone 3GS?

      If you use the hell out of your smartphone, you might be getting your money's worth. But if you're a more "casual" smartphone user, then you're getting seriously ripped off.

      --
      Fun with Anagarams! LADS HOST, SHALT DOS. HAS DOLTS. AD SLOTHS, HATS SOLD. ASS HO, LTD.
  8. Re:Terrible idea... by Grave · · Score: 5, Interesting

    That's kinda what they did when they went AT&T exclusive at the start.. there's a whole big argument to be made regarding what would've happened with iOS vs. Android had Verizon not been left out of the iPhone sales fest early on and decided to retaliate with pushing and marketing the Droid the way they did.

  9. AT&T spending money they need by Anonymous Coward · · Score: 5, Insightful

    AT&T can use that money to upgrade and expand their broadband circuits. I'm in south Texas and AT&T openly admits that our lines are over subscribed. Every Tech sent to check low signal strength has confessed to over subscription. Well use that money to improve the service they are collecting for and not providing!!

  10. translation: by wierd_w · · Score: 5, Insightful

    ATT: "We didn't get our request rubber stamped like we expected it to be after we spent all that money to get the current crop of legislators and executives elected. We spend money on campaign contributions for a reason people! The FCC's review of our proposed acquisition of T-Mobile totally neglects to take these facts into account, and instead harps on things like abusive monopoly paractices and leaked memos from our executives. Obviously the FCC is not doing its job as a captured regulator, and we are voicing our displeasure publicly so as not to oust our purchased politicians. We fully expect them take action against this FCC ruling, and further insist that they take the DoJ to task on the pending antitrust case, if they want any more of our money; we understand that elections are just around the corner. Just a reminder guys. We don't get what we want, you don't get what you want."

    Sprint: "We applaud the FCC for finally doing what it was really supposed to do, and appreciate its dedication to fact finding and for ensuring a balanced economic foundation for the telecom industry. We strong urge everyone to read the FCC's report."

  11. Re:Terrible idea... by Daniel_Staal · · Score: 5, Interesting

    On the other hand, it's possible that Android would never have been able to make it to market without Apple first muscling their way into the game the way they did. One of the benefits they got by going exclusive was that they were allowed a lot more control over their hardware and what could be installed on it than any other phone manufacturer was. You could make an argument that the smartphone market wouldn't be as big as it was without Apple showing what was possible.

    Hard to tell. It's all guesswork at this point.

    --
    'Sensible' is a curse word.
  12. Re:Expectations. by Daniel_Staal · · Score: 5, Insightful

    No, but I can imagine silence. Or a one-sentence 'we respectfully disagree'.

    --
    'Sensible' is a curse word.
  13. Question: Are these committments binding? I doubt! by bogaboga · · Score: 5, Interesting

    It's good the government did not approve this merger. Here's why:

    First, behind all these statements will be legalese that I describe after each one of them.

    After discounting the job-creating impact of AT&T's LTS and other investments, the report asserts that the merger will cost jobs despite public commitments AT&T has made to address this very concern, including the following:

    AT&T should know that public commitments are not legally binding.

    Commitment that the merger will not result in any job losses for U.S.-based wireless call center employees of T-Mobile or AT&T who are on the payroll when the merger closes;

    How many are these? You will not be surprised that there could be a handful of them in the USA. Even then, you could find that these so called call center employees are not directly employed. Many times, companies will outsource services to the extent that there are pay disparities for employees doing the same job.

    Commitment to bring 5,000 wireless call center jobs back to the U.S. that today are outsourced to other countries;

    Over what period of time may I ask? AT&T could later argue that they meant returning these jobs "over a period of two or three decades!" Imagine that.

    Commitment that T-Mobile's non-management employees whose job functions are no longer required because of the merger will be offered another position in the combined company.

    What they do not tell you is that the offered position will be at a significantly lower pay, or that these positions will not be permanent, or that they will have conditions attached to them such that employees will fire themselves.

    Who does AT&T think they are fooling?

  14. Read carefully by ShooterNeo · · Score: 5, Insightful

    Notice that every rebuttal made by AT&T is simply a statement by AT&T that they PROMISE not to do what is in their own best interest!

    For example, if there is 1 fewer wireless company, there WILL be less total job positions needed. That is an obvious truth of economics : one fewer company means more consolidation, fewer independent cell towers needed, etc. Yet AT&T PROMISES to hire more Americans as CSRs, despite the fact that it would be cheaper for them to keep outsourcing.

    AT&T will find it easier to raise prices with the merger because with 1 fewer competitor, the Nash Equilibrium inches closer to monopoly prices. AT&T PROMISES to do otherwise.

    AT&T has no competitor to fight for rural broadband market share, yet they PROMISE to build the wires anyway.

    And so on and so forth. Every rebuttal basically says "well, maybe it doesn't make market sense, but we have plans to do X if we get our way".

    Think about who made this report : some lawyers and marketing folks in AT&T's executive branch. Those people are not going to be unbiased.

  15. Re:Newsflash! by Gerzel · · Score: 5, Insightful

    Of course not.

    The firmly worded letter is for appearances.

    The bribed senators and congressmen are the ones that will actually move things for them.

  16. Another thing Grandma used to say by symbolset · · Score: 5, Funny

    The difference between a politician and an honest politician is that an honest politician stays bought.

    --
    Help stamp out iliturcy.
  17. Re:AT&T stock by surgen · · Score: 5, Interesting

    The FCC's directive is not to ensure the value of your stock. The FCC asked AT&T why the merger was good for consumers and AT&T wasn't able to provide a reasonable one.

    As someone who recently came of voting age, its kind of jarring to see our government function like this. I'm used to seeing the public interest railroaded to benefit a corporate interest, a corporate interest railroaded to benefit a different corporate interest, but I've never seen the public interest held above a corporate interest like this. Hell, they didn't even decide anything and I'm excited to see this, I know they would be able to jam up the merger eventually, but right now they've just presenting findings.

    Is this what democracy is supposed to look like? I fucking love it. Shit, even if government decisions continue to be against the public interest, I'd be psyched if they just had the balls to admit it with reports like this. That would be a huge step forward from the bullshit "someone is making money, therefore its good, fuck off" level of analysis I'm used to seeing.

  18. Re:Newsflash! by GoodNewsJimDotCom · · Score: 5, Interesting

    Or just bribe the people at FCC. It worked for NBC/Comcast. At first there was resistance, then the FCC person in charge of it approves of it, retires, and 'MAGICALLY' starts working for NBC all of a sudden. You can't explain that.