Facebook, Microsoft back AT&T's T-Mobile buy

Jun 07, 2011
Facebook, Microsoft, Oracle, Yahoo! and other technology leaders have come out in support of AT&T's proposed $39 billion acquisition of T-Mobile saying it could help meet rising demand for wireless broadband.

Facebook, Microsoft, Oracle, Yahoo! and other technology leaders have come out in support of AT&T's proposed $39 billion acquisition of T-Mobile saying it could help meet rising demand for wireless broadband.

"Today, consumers are increasingly using smartphones, tablets, laptops and other mobile devices to wirelessly connect to the Internet and to each other," the companies said in a letter to Federal Communications Commission chairman Julius Genachowski.

"As a result, consumer demand for is dramatically increasing and our wireless networks are struggling to keep pace with the demand," they said in the letter published on the FCC website.

"AT&T's acquisition of represents a near term means of addressing the rising consumer demand," they said. "For example, the merged company will be able to leverage a larger network of cell sites allowing greater reuse of spectrum and increasing the wireless broadband capacity of the network."

"The FCC must seriously weigh the benefits of this merger and approve it," the companies said. "Such action will help to meet the near term wireless broadband needs of consumers and ensure that we are globally competitive as the world increasingly embraces wireless broadband connectivity."

The other four signatories to the letter to the FCC in support of the proposed takeover of T-Mobile, the US unit of Germany's Deutsche Telekom, by AT&T were Avaya, Brocade, Qualcomm and Blackberry maker Research In Motion.

Rival Sprint Nextel has come out strongly against the deal, which would give AT&T around 40 percent of the market and make it the top US wireless carrier. Verizon is currently number one, followed by AT&T, Sprint Nextel and T-Mobile.

"AT&T's acquisition of T-Mobile will turn back the clock on wireless competition," Sprint chief executive Daniel Hesse told a Senate hearing last month looking into the deal.

"The wireless industry thrives on competition," Hesse said, and an AT&T acquisition of T-Mobile would mean that "two companies would largely control industry pricing."

Other opponents include the Computer & Communications Industry Association, which filed a petition with the FCC last month asking it to deny AT&T's bid.

"AT&T has blocked numerous innovations that have competed with its business model in the past from fax machines to cell phones," CCIA president and chief executive Ed Black said.

"This brazen merger proposal makes it clear they are once again seeking market power which will allow them to hold back innovation and maximize profits."

Explore further: Creating the fastest outdoor wireless Internet connection in the world

add to favorites email to friend print save as pdf

Related Stories

AT&T's T-Mobile buy faces congressional scrutiny

May 11, 2011

US lawmakers grilled AT&T on Wednesday over its proposed $39 billion acquisition of rival T-Mobile USA, questioning whether the mega-merger would harm competition in the fast-growing wireless industry.

Sprint wants AT&T, T-Mobile deal blocked

Mar 28, 2011

Sprint Nextel, the third-largest US wireless provider, urged US regulators on Monday to block AT&T's $39 billion acquisition of T-Mobile USA, saying it would harm competition.

FCC seeking more spectrum for wireless broadband

Feb 24, 2010

(AP) -- Federal regulators are hoping to find more wireless spectrum for mobile broadband services by reallocating some airwaves now in the hands of television broadcasters and other users.

FCC adopts rules to drive wireless competition

Apr 07, 2011

(AP) -- Federal regulators adopted rules Thursday to drive more competition in wireless broadband as more people access the Internet using iPhones and other popular mobile devices.

Sprint And Intel To Explore WiMAX Broadband Technologies

May 05, 2005

Sprint and Intel Corporation today announced an agreement to engage in joint efforts to advance the development of IEEE standards-based 802.16e WiMAX mobile technology, which can provide high capacity wireless broadband cove ...

Recommended for you

Why the Sony hack isn't big news in Japan

15 hours ago

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Off-world manufacturing is a go with space printer

19 hours ago

On Friday, the BBC reported on a NASA email exchange with a space station which involved astronauts on the International Space Station using their 3-D printer to make a wrench from instructions sent up in ...

Cadillac CT6 will get streaming video mirror

20 hours ago

Cadillac said Thursday it will add high resolution streaming video to the function of a rearview mirror, so that the driver's vision and safety can be enhanced. The technology will debut on the 2016 Cadillac ...

Sony faces 4th ex-employee lawsuit over hack

20 hours ago

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

not rated yet Jun 07, 2011
Less competition is not the best thing to get our country jump started. We already have little choice in the telecommunication arena, this makes it worse. I was happy with Nextel client until Sprint ran the quality down to the point I left... for T-Mobile. I'm not interested in AT&T and Verizon. I find their after sales service sub-par. Big corporations are just not nimble enough to work with individuals.

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.