Hello! And welcome to our Friday column, Worst of the Week. There’s a lot of nutty stuff that goes on in this industry, so this column is a chance for us at RCRWireless.com to rant and rave about whatever rubs us the wrong way. We hope you enjoy it!
And without further ado:
Every couple of years wireless operators like to shake things up a bit by announcing a blockbuster merger and/or acquisition that sends shock waves through the competitive juices flowing across the galaxy. As an observer of such things, I always find these bombs to be both awesome in their audaciousness as well as an opportunity to get a deeper view into how carriers like to perceive the industry.
As most of us know, AT&T is the latest to heave a combustive projectile into the mix announcing a few weeks back that it would very much like to acquire T-Mobile USA, a move that would unite the domestic industry’s No. 2 and No. 4 player and consolidate the top GSM-based operators under one roof. Ka-boom!
To this point we have covered in depth both the points of the deal as well as the reaction it has generated across the industry.
But, in a follow up to that announcement, AT&T a week or so ago filed its official request to take T-Mobile USA’s hand in marriage with the industry’s somewhat discombobulated guardian the Federal Communications Commission. This tome is quite the read and has already been dissected to an extent by us here at RCR Wireless News.
While the details of the document are indeed a fascinating read and something everyone should absorb for themselves, I think the overall take away from what AT&T is trying to convey in the document is quite interesting as it paints a picture of a carrier that is on the verge of collapse if this deal does not go through.
If I could sum up the gist of the document in one phrase it would be: These are not the droids you’re looking for.
In a nutshell the document claims that AT&T Mobility has somehow managed to con more than 90 million people to sign up for service despite the fact the carrier’s network has neither the scale nor scope to actually handle their needs. In fact, AT&T Mobility’s network is so spectrally constrained that at any moment the whole apparatus could collapse.
To prevent this calamity, AT&T needs to acquire T-Mobile USA so it can feed both customer bases the sweet spectrum nectar of their combined assets. (Also, please ignore all the spectrum that AT&T has stashed away. These are not the droids you’re looking for.)
While this deal may take out the nation’s No. 4 operator and one seen by many as an instigator for lower wireless prices, T-Mobile USA is really not a competitor to AT&T, or anyone else for that matter. In fact, T-Mobile USA is really just a shell of company that despite serving 35 million customers is really itself on the verge of collapse as its parent company is making it pay its own way and it has absolutely, positively no way to offer 4G services. (Also, please ignore the fact that its advertising claims to offer the nation’s largest 4G network using a technology that AT&T also uses for its current “4G” network claims. Again, these are not the droids you’re looking for.)
AT&T Mobility’s real competitors in the market are those small, regional players that seem to be living paycheck-to-paycheck and not the larger, nationwide carriers. You know who they are talking about; the Cellular South and Cincinnati Bell Wireless’ of the world. Those are the real movers and shakers in the mobile space.
All of this is not to say that some of the claims made by AT&T in the filing are not legitimate. I am sure there are plenty of positives that will come from it gobbling up T-Mobile USA. But, perhaps AT&T might want to go back to the drawing board in trying to convince the public that these are indeed not the droids you’re looking for.
OK, enough of that.
Thanks for checking out this week’s Worst of the Week column. And now for some extras:
–Well, apparently the future is not going to be without its problems. Just months after Verizon Wireless turned on its LTE network, and after repeatedly claiming surprise at how smooth the launch went, the network went ahead and took a sick day. Verizon Wireless was a little slow to acknowledge the glitch, but eventually turned to its Twitter account to keep the public abreast of the situation.
This was followed by the carrier then cancelling the launch of its second LTE-equipped smartphone just hours before it was scheduled to be launched.
The mess was eventually cleared up, but I guess even if you have the deepest pockets and greatest minds, getting out ahead of the game is always a risky quest.
—Sony Corp. this week threw its hat into the hotly contested, though utterly perplexing, tablet space showing off a pair of devices sporting virtually the same specifications as hundreds of other devices launched in the past 72 hours. While one of the devices has a pair of 5.5-inch screens that can fold and more resemble a book, but other than that, the only difference seems to be that they say Sony on them.
This is somewhat disappointing as at one point in history Sony was associated with the leading edge of consumer electronics and a brand that people would often pay extra for. Sort of like Apple is today.
And speaking of Apple, for the launch of the new devices Sony executives hinted that they have no real expectations to ever overtake Apple in the tablet market, but would instead be happy as a strong No. 2. What the what?!? Even if that is the greatest possible outcome Sony could expect for the market, why would they take such a stand publicly? Maybe a hacker broke into Sony’s confidence room and made off with all the code.
–And speaking, speaking of Apple, unbelievable is the only word that comes to mind following Apple’s release of a white iPhone this week. It’s not so unbelievable that Apple would finally release a white version of its iconic device to an adoring fan base growing tired of bedazzling their phone in order to differentiate themselves from everyone else they know. Instead it was unbelievable that the launch of a white iPhone was actually news. I could see if they were unveiling a hot pink iPhone, but white?
–Did someone say “Apple?” Also looks like Apple’s little tracking issue did not go away as quietly as the company was hoping. After initially saying that its mobile devices did not track the movement of their owners, Apple said it would come out with a fix for the “bug” that allowed for the device to track the movement of their owners, something that the device does not really do. I feel better already.
–Not recommended for the weak stomached, but for those who enjoy such brands of humor this week’s “South Park” is probably worth a view.
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