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FCC wants answers about job claims before approving AT&T purchase of T-Mobile

Written by Rich Fiscus (Google+) @ 14 Oct 2011 2:05 User comments (8)

FCC wants answers about job claims before approving AT&T purchase of T-Mobile The FCC has sent a letter to AT&T asking for more details about the number of US jobs which would be created and eliminated by their proposed buyout of T-Mobile USA.
AT&T, the number 2 wireless carrier in the US, is attempting to buy the number 4 carrier from corporate parent Deutsche Telekom. The deal is opposed by the Justice Department on antitrust grounds.

In their letter, FCC commissioners complain that AT&T has "produced almost nothing" in response to their request for details about the affect on jobs in both operations.

Certainly there is reason to be concerned about the matter. AT&T has made a big deal about planning to bring 5,000 call center jobs back to the US which had previously been outsourced to other countries.

At the same time, one of their promises to shareholders was a savings of $10 billion in support costs, which includes call centers, over the next 3 years.

The obvious question, then, is how they plan to save money while increasing payroll. That appears to be exactly what the FCC is looking to answer.

They are requesting:

All analyses, reports, data or other documents in AT&T's possession, custody or control that analyze the size and location of AT&T's workforce both before and as anticipated after the merger. This would include, among all other responsive documents, (i) any documents enumerating the number of T-Mobile and AT&T jobs that will be eliminated or added should the merger be approved, and the effect of the proposed transaction on employment both inside and outside the United Sates; (ii) on an annual basis for the past five years and estimated for the next three years (without the merger), the number of AT&T wireless full-time employees ("FTEs") and, separately wireless call center FTEs within and outside the United States, broken down by employment location and type of employee (direct or out-sourced); and (iii) the "detailed analysis focused specifically on identifying opportunities with the T-Mobile merger to bring good-paying wireless call center jobs back to the United States" that AT&T stated it had developed.


In addition, the FCC is asking AT&T to give a detailed accounting of the portion of their estimated savings which are related to payroll reduction.

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8 user comments

114.10.2011 2:15
llongtheD
Inactive

And you thought the deal was dead because the DOJ was investigating. In the age of limitless corporate lobbying, no deal is dead until they've spent enough money. I use lobbying loosely, bribery is more the appropriate term.


If your fish seems sick, put it back in the water.

214.10.2011 3:41

Originally posted by llongtheD:
And you thought the deal was dead because the DOJ was investigating. In the age of limitless corporate lobbying, no deal is dead until they've spent enough money. I use lobbying loosely, bribery is more the appropriate term.
One might also consider it extortion on the part of government officials..."I won't let you get away with this murder...unless you pay me."


314.10.2011 9:18

Ugh. I'm so dreading the day this finally gets pushed through against all reason. Why Deutsche Telekom, why do you hate me?


~*Livin' Electronicallly*~

414.10.2011 23:57

It's obvious that DT wants out of the US market since they're not even going to spend any money to build a LTE network for T-Mobile USA, the only problem is that AT&T is the one who wants to buy them. Maybe Google should go ahead and buy T-Mobile and add a carrier to its portfolio.

515.10.2011 2:09

T-Mobile isn't building an LTE network because they have the fastest 4G network in the country already, and because all of the "LTE" networks are actually "Pre-LTE" networks anyway.



615.10.2011 9:42

Originally posted by KillerBug:
T-Mobile isn't building an LTE network because they have the fastest 4G network in the country already, and because all of the "LTE" networks are actually "Pre-LTE" networks anyway.
True story, T-Mobiles network is HSPA +, which can actually produce speeds much greater than that of current LTE networks.... Only issue is they may not be coming to your area right away.... I know my area is getting held back by the Verizon Comcast connection... Extorting prices on signal usage before they release our network upgrade....

715.10.2011 12:19

Originally posted by asilay328:
Originally posted by KillerBug:
T-Mobile isn't building an LTE network because they have the fastest 4G network in the country already, and because all of the "LTE" networks are actually "Pre-LTE" networks anyway.
True story, T-Mobiles network is HSPA +, which can actually produce speeds much greater than that of current LTE networks.... Only issue is they may not be coming to your area right away.... I know my area is getting held back by the Verizon Comcast connection... Extorting prices on signal usage before they release our network upgrade....
At least that's a better reason than living in a po'dunk nowhere land that will absolutely never see an upgrade simply because the population doesn't scream profit lol not that I can blame them.

821.10.2011 10:18

The title of the article suggests that FCC is on the verge of granting approval to takeover. All they want are employment projections - probably regardless of what they are! These can be way off just like Dubya going to war in Iraq and not finding any WMD as a "after the fact".

AT&T can very easily paint a very rosy picture and subsequently (meaning after the merger) come up with a lame excuse blaming the economy !

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