Comments on: Justice makes the right decision on AT&T http://blogs.reuters.com/felix-salmon/2011/08/31/justice-makes-the-right-decision-on-att/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: traducere daneza http://blogs.reuters.com/felix-salmon/2011/08/31/justice-makes-the-right-decision-on-att/comment-page-1/#comment-53525 Mon, 29 Sep 2014 13:57:32 +0000 http://blogs.reuters.com/felix-salmon/?p=9646#comment-53525 Great website you have here but I was curious if you knew of any message boards that cover the same topics discussed in this article? I’d really love to be a part of online community where I can get feedback from other knowledgeable individuals that share the same interest. If you have any suggestions, please let me know. Thanks a lot!

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By: right http://blogs.reuters.com/felix-salmon/2011/08/31/justice-makes-the-right-decision-on-att/comment-page-1/#comment-30443 Fri, 02 Sep 2011 12:57:52 +0000 http://blogs.reuters.com/felix-salmon/?p=9646#comment-30443 @Keng_CA says “All this talk about T-Mo doing horribly is not true – they just weren’t performing as well as DT likes.”

T-Mobile has not had an RoE above 7.1% in any year since 2006. For the last 12 months it has been 4.1%. For comparison, AT&T and Verizon (and indeed almost any healthy company) have RoE in the teens.

If you were a manager or shareholder of Deutsche Telekom, how would you justify investing the $3B settlement in a business that is returning 4-7% rather than distributing it to shareholders or finding a better use for the capital?

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By: TinyTim1 http://blogs.reuters.com/felix-salmon/2011/08/31/justice-makes-the-right-decision-on-att/comment-page-1/#comment-30384 Thu, 01 Sep 2011 07:35:49 +0000 http://blogs.reuters.com/felix-salmon/?p=9646#comment-30384 “Further, you have no clue what would happen if the merger succeeded.”

Plenty of countries with 3 providers.
I think that would be a place to start.

Good argument though…
Oh wait, no, it was crap.

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By: y2kurtus http://blogs.reuters.com/felix-salmon/2011/08/31/justice-makes-the-right-decision-on-att/comment-page-1/#comment-30375 Thu, 01 Sep 2011 01:36:40 +0000 http://blogs.reuters.com/felix-salmon/?p=9646#comment-30375 The U.S. Goverment got one right… I’m totally pumped. The obvious logic behind this merger was to remove a low priced competitor and gain scarce spectrum.

In addition to sucking in more customers, an even larger AT&T would have even more clout with equipment providers and Cell Tower opperators.

The best news of the day is that with the merger firmly on the rocks, we can look forward to more commercials with that stunningly attractive lady in those cute dresses!

Did anyone see the AT&T CEO on CNBC today promising to onshore a whopping 5,000 call center jobs if the merger is approved. He was also touting the massive U.S. CapEx spending bender he was prepared to go on if the merger was approved. It will be so interesting if he goes rogue… I’ll be honest if it was me I’d take my ball and run straight home to my new Swiss chalet. “Oh I can’t grow my revenues via merger in a saturated market… well then I guess I’ll be spending 2 billion on capex instead of 20… and I’ll spend that newfound 18 billion on aquisitions in LatAM, the Middle East, and Asia.”

Keep following this one… could get real interesting!

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By: KenG_CA http://blogs.reuters.com/felix-salmon/2011/08/31/justice-makes-the-right-decision-on-att/comment-page-1/#comment-30367 Wed, 31 Aug 2011 22:23:59 +0000 http://blogs.reuters.com/felix-salmon/?p=9646#comment-30367 @right, T-Mo can survive on its own, if DT chooses to spin them off. It’s hard to say they are on the verge of dying, when ATT values them at $39 billion. If DT doesn’t want them, they can always find another customer at a lower price, or spin them off in an IPO – in either case, they won’t disappear unless a bigger carrier makes that happen.

If the acquisition is blocked, DT can easily justify at least another $3 billion in investment in T-Mo, because that is what ATT will give them, in addition to $3 billion worth of spectrum and roaming credits.

All this talk about T-Mo doing horribly is not true – they just weren’t performing as well as DT likes. The proposed acquisition by ATT has scared off a lot of customers, as many T-Mo subscribers specifically do NOT want ATT service, and left rather than be acquired by them.

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By: DwDunphy http://blogs.reuters.com/felix-salmon/2011/08/31/justice-makes-the-right-decision-on-att/comment-page-1/#comment-30357 Wed, 31 Aug 2011 19:28:18 +0000 http://blogs.reuters.com/felix-salmon/?p=9646#comment-30357 Hmmm. I’ve seen this before. Ticketmaster v. LiveNation. Somehow or another, this deal will get done. Who ya gotta bribe around here to build a telecom monopoly?

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By: ReuterReader76 http://blogs.reuters.com/felix-salmon/2011/08/31/justice-makes-the-right-decision-on-att/comment-page-1/#comment-30354 Wed, 31 Aug 2011 19:16:11 +0000 http://blogs.reuters.com/felix-salmon/?p=9646#comment-30354 “Further, you have no clue what would happen if the merger succeeded.”

With that kind of logic, any mergers should be approved. Nobody has any idea what would happen if the merger succeeded, or if the merger failed. It is called the future. Nothing is certain, we can only access likelihoods. The likely behavior in this case is not good for American consumers.

“Felix, they were fighting each other in the marketplace. A takeover is a valid marketplace action. Having it blocked is an anti-market intervention.”

The benefits of the free market do not occur when there are only a few merchants in the marketplace. There is not enough merchants as it is now. The anti merger decision is pro market.

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By: nortonjacobs http://blogs.reuters.com/felix-salmon/2011/08/31/justice-makes-the-right-decision-on-att/comment-page-1/#comment-30353 Wed, 31 Aug 2011 19:06:35 +0000 http://blogs.reuters.com/felix-salmon/?p=9646#comment-30353 You raise an interesting point, and it does appear to be something the DOJ has considered. In paragraph 42 of the complaint, discussing direct competition between AT&T and T-Mobile, the DOJ alleges that “[f]or some customers, such as enterprises whose employees travel extensively internationally, AT&T and T-Mobile are particularly close substitutes.” The CDMA v. GSM issue is not explicitly mentioned, but I’m confident that is at the heart of this particular allegation.

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By: Al385 http://blogs.reuters.com/felix-salmon/2011/08/31/justice-makes-the-right-decision-on-att/comment-page-1/#comment-30346 Wed, 31 Aug 2011 18:22:54 +0000 http://blogs.reuters.com/felix-salmon/?p=9646#comment-30346 This article forgets to mention one other aspect. Before the merger was even announced, T-Mobile was not in great shape, and Deutsche Telekom had pretty much given up on it. O.K. now the merger doesn’t happen, so what happens to T-Mobile? Maybe they will go on to compete, but not a lot has changed since before the merger. If they close down, that isn’t going to help competition either. So how many GSM operators would be left then? A sick T-Mobile is no better for consumers than a T-Mobile merged with AT&T.

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By: Al385 http://blogs.reuters.com/felix-salmon/2011/08/31/justice-makes-the-right-decision-on-att/comment-page-1/#comment-30345 Wed, 31 Aug 2011 18:22:47 +0000 http://blogs.reuters.com/felix-salmon/?p=9646#comment-30345 This article forgets to mention one other aspect. Before the merger was even announced, T-Mobile was not in great shape, and Deutsche Telekom had pretty much given up on it. O.K. now the merger doesn’t happen, so what happens to T-Mobile? Maybe they will go on to compete, but not a lot has changed since before the merger. If they close down, that isn’t going to help competition either. So how many GSM operators would be left then? A sick T-Mobile is no better for consumers than a T-Mobile merged with AT&T.

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