Going deep on AT&T-T-Mobile merger: How will it really impact wireless competition?
We step into the breach of a recent Yankee Group-AT&T firestorm over the deal - with Yankee foreseeing reduced competition and higher prices, and AT&T calling its analysis flawed - to talk to the parties involved and do our own deep dive into how the would-be merger will impact the wireless industry.
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#1 Aug 25, 2011
While the Yankee Group makes some good points about rising prices for mobile data, it also falls into AT&T's trap of analyzing the markets affected by the merger as local only and wireless only. Yet as many competitors' strategies and customers' expectations and demands show the relevant markets - as AT&T knows full well - are at least national if not global in scope, and involve all network services, not just wireless-based ones. AT&T's comments attacking the Yankee Group's findings are only one example of the pervasive campaign of deception it is waging to conceal the actual causes of congestion in its network, to present unjustified claims about its inadequate spectrum and limited number of cell sites, and thus to hide its true motivation for the acquisition of T-Mobile (to reduce competition), while offering hollow promises of expanded rural broadband coverage.
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