Verizon chief supports AT&T/T-Mobile merger

Late last month the U.S. Justice Department sued to block the proposed AT&T takeover of T-Mobile for $39 billion. While AT&T tries to work on concessions, Verizon Chief Executive Officer Lowell McAdam said AT&T’s proposed acquisition of T-Mobile “had to occur,” at event in New York.

“The AT&T merger with T-Mobile is kind of like gravity, it had to occur. If the government wants to stop the takeover, it needs to have a plan to distribute spectrum and ease the crunch some carriers are facing, he said. “We’re going to watch that very closely.”

The U.S. Justice Department feels this deal is a threat to wireless competition. AT&T said the deal was made to gain the capacity it needs to ease network congestion, and accelerate the rollout of next generation technology faster.

“If you look at the path that wireless is on, clearly we need to have more spectrum in the marketplace,” McAdam said.

So what do you guys think? I think the block by the U.S. Government is only to force AT&T to make some concessions. In the end this deal will go through.

[via bloomberg]

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  • JtowN

    In my opinion I believe its the right move to merge since it is becoming to look at other providers phone and say “I want this phone” and have to change providers to get it or pay $20 – 30 to get unlock code to use the phone internationally with a much wider selection of phones (hopefully) and like it says above it will soothe connection hiccups and errors which i’m looking more forward to than anything else. Now I think people with T-mobile contracts should be able to keep what they pay to the end of their contract, but after that like any change you to adapt and move get with the merge or go to verizon or sprint.

  • David Storm

    “I want this phone” is the reason this merger should go through? I don’t think so. The cell companies need to be forced to allow you to add your phone to their network if it is compatible with them. Any CDMA phone should be allowed on any CDMA network. This is what needs changed. We don’t need a merger for this, we need rules forced on AT&T, Verizon, Sprint and all the rest. I currently use a Epic on a carrier who does not have Epic. The carrier has no way of knowing this and it’s just plain stupid that they should be allowed to stop me. I pay for my plan each and every month. This is just like the Tether debate. Verizon is blocking the app. What if my WiFi supplier at home decided to block wifi access to a verizon phone. Why should my Verizon phone be able to use all of my Comcast services at home when using their theory, they did not pay for that service.??? It’s B/S and it’s greed and nothing more. Anyone with half a brain can download these programs without going through the market. It’s your phone, you paid for it, use it.