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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: Not Bloody Likely
By nolisi on 3/26/2012 1:29:06 PM , Rating: 2
quote:
If all of you people on here constantly hating on AT&T wanted to put your money where your mouth is, you would have switched to T-Mobile to prove them wrong.


I was with T-Mobile before the merger attempt, and am still with them now. I tried AT&T for two years and unless something extraordinary happens, have no desire to return.

quote:
I say let the market decide. Not big government.


If you allow the merger to go through, the majority of the market can't decide. Remember, those of us who hold accounts with T-Mobile are a bigger part of the market than AT&T's board of directors who want to see their stock value increase through a merger. But you cut out the ability for the majority of the market to truly make a decision if one company buys out another.

Effectively, it's not a "market" decision- it's a big business decision. Those of us account holders who have supported T-Mobile by giving our business to them were never consulted on this, therefore it does not constitute a market decision.

And given a choice between big business and big government making a decision- I'll take big government each time because there's at least the potential for me to control it with my vote.


"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA














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