Verizon OK with AT&T, T-Mobile Merger
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Another opponent of the plan is the Justice Department, which announced a lawsuit to block the merger. The case will go to trial on Feb. 13.
With more people moving to data plans, the cost of upgrading networks will be steep, said Jeff Kagan, an independent analyst who opposes the merger. He believes the merger could leave all other companies unable to compete with an ATT network.
“I think Verizon is afraid of what the merger will do for the wireless industry,” Kagan said. “But [Verizon] may want to make an acquisition in the future and wouldn’t want ATT in the way of that.”
Yet Verizon may not have any immediate worries, analyst Charles Golvin of Forrester Research told IBTimes. He said Verizon is ahead in terms of total customers and in terms of rolling out the new 4G LTE network, and Verizon wouldn’t likely appeal to the typical T-Mobile customer anyway.
“I think Verizon doesn’t like the fact that it won’t be number one in the wireless market anymore,” Golvin said.
Merger supporters have tried to leverage the national concern over employment in order to build public support for its case. A recent study by the Communications Workers of America, which represents thousands of ATT employees, said the deal could create up to 96,000 jobs as the new company works to rollout a stronger wireless network. Sprint and other merger opponents have challenged that claim.
Furthermore, ATT CEO Randall Stephenson said earlier this year that if the merger were to go through, the company would bring back 5,000 call center jobs currently overseas.
Editor’s note: This article has been updated to add analyst comments.
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Article source: http://www.ibtimes.com/articles/253389/20111121/verizon-t-mobile-merger-sprint-justice-department.htm
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