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AT&T CEO Randall Stephenson   (Source: ZDNET)
AT&T's CEO makes a case for iPhone customers in T-Mobile deal

AT&T raised more than a few eyebrows when it announced its plans to purchase Deutsche Telekom's T-Mobile unit for a whopping $39B earlier this year. Verizon gave the announcement a hearty "meh", while Sprint's early grumblings about the deal turned into a full-blown battle cry

AT&T CEO Randall Stephenson is now making a case for the deal, and is specifically citing iPhone users as benefiting from the merger reports Business Week

Stephenson says that the bringing T-Mobile into the fold will boost network capacity (by as much as 30 percent) and improve service for the iPhone and other smartphones that hog data.

“This transaction is very instrumental," said Stephenson. “Virtually on the day you close the deal, getting a 30 percent lift in capacity in New York City: that’s a significant improvement in call quality and data throughput.”

As for Sprint's concerns about the deal going through, Stephenson says that there is nothing to worry about. “This is an intensely competitive industry. It is intense before we do this transaction, it will be intense after we do this transaction.”

Reviewers, customers, and independent agencies have repeatedly blasted AT&T’s 3G service. In December 2010, Consumer Reports proclaimed,  "AT&T is the worst carrier." AT&T ranked dead last in a survey of 58,000 Consumer Reports readers.

AT&T notoriously shoddy 3G voice/data service was seen as one of the motivators for customers to drop AT&T and head straight for Verizon's version of the iPhone 4.

Nearly two years ago, there were reports indicating that AT&T had a 30 percent dropped call rate in New York City. And we can't forget Verizon's Holiday 2009 commercials that took numerous jabs at AT&T's call quality and service coverage.





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