Thursday, March 24, 2011

AT&T & T-Mo Merger:: It's the Bandwidth, Stupid!




This is an interesting interview by Ray Suarez, featuring Jeffrey Silva, a financial analyst, and Gigi Sohn of Public Knowledge, a DC public interest group. There's the expected talk of competition and pricing, since much of the focus on on the impact on the consumer. T-Mobile has the distinction of being a lower cost mobile carrier, which exerts downward pressure on prices, but at the 7:40 mark, Sohn also reminds us that T-Mobile is cheap on data plans and has embraced openness. On the other hand, AT&T caps data usage and has not embraced openness in their networks. This WSJ blog notes what I suspected all along. AT&T doesn't expect this deal to go through FCC & DOJ unscathed and is willing to leave T-Mobile subscribers on the table. I don't think this is a market share sweepstakes, but the game AT&T wants to play is one where AT&T leapfrogs to #1 with subscribers, but close to #2 Verizon, while taking over T-Mobile's bandwidth for mobile data. Period.

Twitterversion:: [video+blog]"AT&T & T-Mo merger: It's the Bandwidth, Stupid!" ATT will do a song & dance to get spectrum for mobile data @Prof_K

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