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Jim Cicconi
AT&T still isn't done badmouthing the FCC

Yesterday, T-Mobile made the decision to axe 1,900 workers in the U.S. Most of the layoffs will come from call centers located in Pennsylvania, Florida, Texas, Kansas, Colorado, and Oregon.
 
T-Mobile USA CEO and President Philipp Humm explained, "These are not easy steps to take — or, I know, to read. We must address our business realities so we can focus on getting T-Mobile back to growth."
 
AT&T, which has a serious axe to grind following the failure of its acquisition of T-Mobile, took the opportunity to kick some mud in the face of the Federal Communications Commission (FCC). Jim Cicconi, AT&T's Senior Executive Vice President of External and Legislative Affairs, made it clear that had the merger gone through, the jobs at T-Mobile's call centers would have been preserved.
 
"Only a few months ago AT&T promised to preserve these very same call centers and jobs if our merger was approved," Cicconi chided. "We also predicted that if the merger failed, T-Mobile would be forced into major layoffs."
 
Cicconi didn't stop there, however. He continued his rant against the FCC and didn't hold back any punches:
 
The FCC argued that the merger would cost jobs, not preserve them, and that rejecting it would save jobs. In short, the FCC said they were right, we were wrong, and did so in an aggressive and adamant way.
 
Rarely are a regulatory agency’s predictive judgments proven so wrong so fast. But for the government’s decision, centers now being closed would be staying open, workers now facing layoffs would have job guarantees, and communities facing turmoil would have security.
 
So what’s the lesson here? For one thing, it’s a reminder of why “regulatory humility” should be more than a slogan. The FCC may consider itself an expert agency on telecom, but it is not omniscient. And when it ventures far afield from technical issues, and into judgments about employment or predictions about business decisions, it has often been wildly wrong. The other lesson is even more important, and should be sobering. It is a reminder that in government, as in life, decisions have consequences.
 
It's understandable why AT&T is still fuming mad over the loss of T-Mobile. The company had to pay a $4 billion USD "breakup fee" when it decided to walk away from the table after the FCC made it clear that the acquisition wouldn't be approved. For its part, T-Mobile reported that it lost 700,000 customers in Q4 2011. Philipp blamed the lost of customers on its inability to obtain Apple's popular iPhone 4S for its network.

Sources: AT&T, T-Mobile



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RE: Doesn't add up
By Ringold on 3/24/2012 2:56:30 PM , Rating: 2
quote:
Pardon my ignorance, but what exactly is Tmobile doing with that $4 Billion they're going to get from AT&T? Even if they only spent a billion of it, that comes to $526 315.789 for each of those 1900 workers.


T-mobile has, as far as I know, been awfully stagnant in terms of subscribers for quite a while, so they unfortunately probably just dont need them. T-mobile exists to sell wireless service and make money in the process, not a government make-work scheme, so just because it has 4 billion doesn't mean it needs to pay 4 billion for employees to do work that apparently is not needed for the company to go on.


RE: Doesn't add up
By tamalero on 3/24/2012 4:11:15 PM , Rating: 2
they could.. you know.. do logic.. improve their networks to stay competitive.. but no.. like comcast and others..they prefer to play the OH WOE IS ME.. NEED TO FIRE WORKERS!


RE: Doesn't add up
By Ringold on 3/25/2012 6:59:41 PM , Rating: 2
That's assuming their network is why they're not competitive; I've been using them off and on for years without much trouble, and they've got some of the better pricing. HSPA+, from my anecdotal experience with it, feels as good as rivals 4G services, at least for now, and the parts where I live.

Again, comes down to if they need those workers in question. Sounded like they were call center workers. You mention upgrading networks. Call center employees aren't the ones that'd go out and tinker with cell towers.


"Google fired a shot heard 'round the world, and now a second American company has answered the call to defend the rights of the Chinese people." -- Rep. Christopher H. Smith (R-N.J.)














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