AT&T Inc. CEO Randall Stephenson announces his company's proposal to buy T-Mobile from Deutsche Telekom in New York. REUTERS/Brendan McDermid
I spent a fair bit of time last week combing over AT&T's first T-Mobile merger filin
g, a 381-page document that lays out exactly why the carrier thinks the $39 billion merger will be good for consumers, competition, and America. It's an interesting document: AT&T claims that the merger won't have any real impact on the wireless market because it already faces serious competition from every carrier except T-Mobile, which it repeatedly characterizes as a doomed company. After all, if T-Mobile is already failing, allowing AT&T to swallow it whole won't change the overall level of competition in the market. It's audacious, to say the least.
Now, most people -- including me -- think this argument is preposterous. There are only four national carriers in this country, and approved or not, the end result of the T-Mobile merger process will have a significant effect on the wireless market. The only people who think otherwise all apparently work at AT&T, and a growing chorus of critics say the merger should be blocked on the grounds that it will reduce competition and result in a AT&T / Verizon duopoly ruling the market. My friend Chris Ziegler lays the anti-merger argument out in detail
, and it's convincing, to say the least.
Regardless, I still think the merger should be approved. Yes, I really do. Why? Because the current state of the US wireless market sucks
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