T-Mobile Lays Off 1,900 Workers, AT&T Tells FCC "Told ya so"
March 23, 2012 4:30 PM
comment(s) - last by
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.
This article is over a month old, voting and posting comments is disabled
I just nailed AT & T for slamming...
3/24/2012 9:15:30 PM
...so I would not be throwing stones if I were AT & T as they have some other issues to deal with below and there will likely be more.
"If you mod me down, I will become more insightful than you can possibly imagine." -- Slashdot
T-Mobile Announces Q4 2011 Results, Loss of Over 700,000 Customers
February 23, 2012, 5:25 PM
AT&T Tucks Its Tail Between Its Legs, Abandons T-Mobile Acquisition
December 19, 2011, 4:50 PM
AT&T Indicates T-Mobile Acquisition Likely to Fail, Takes $4B Charge
November 24, 2011, 11:08 AM
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Leak: Apple Preps for First Real Android App Foray With New Apple Music App
October 24, 2015, 1:59 PM
Pepsi Smartphone? Empty Calories Coming Soon to the Midrange
October 12, 2015, 11:41 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information