AT&T - T-Mobile Deal Opposed By DOJ!

AT&T - T-Mobile Deal Blocked By DOJ http://snapvoip.blogspot.com/

We were surprised this morning by the reports on Bloomberg and the WSJ saying that the United States Department Of Justice (DOJ) is lopposing the AT&T’s proposed $39 billion acquisition of T-Mobile on antitrust grounds.

The news is scant but Bloomberg grabbed the following from the complaint filed in federal court stating;

“AT&T’s elimination of T-Mobile as an independent, low- priced rival would remove a significant competitive force from the market.”

Later FCC chairman Julius Genachowski stated;

“By filing suit today, the Department of Justice has concluded that AT&T’s acquisition of T-Mobile would substantially lessen competition in violation of the antitrust laws. Competition is an essential component of the FCC’s statutory public interest analysis, and although our process is not complete, the record before this agency also raises serious concerns about the impact of the proposed transaction on competition. Vibrant competition in wireless services is vital to innovation, investment, economic growth and job creation, and to drive our global leadership in mobile. Competition fosters consumer benefits, including more choices, better service and lower prices.”

We were not happy about the acquisition but took it for granted that the deal will go through. In fact one of our colleagues was planing to defect from AT&T and go to T-Mobile but changed his mind after the news and is enjoying unlimited data voice service from Sprint. The AT&TT-Mobile deal was backed by Facebook and Microsoft, and 10 venture capital firms, Others include Yahoo, Oracle and the Research in Motion and was also opposed by many.

Of course AT&T is unhappy about the news and plans to take action. Should the deal fall through, AT&T will have to pay Deutsche Telekom, the parent company of T-Mobile upwards of 6 Billion.

AT&T's Wayne Watts,senior executive VP and general counsel released the following statement regarding the news stating that they plan to fight the decision in court;

We are surprised and disappointed by today’s action, particularly since we have met repeatedly with the Department of Justice and there was no indication from the DOJ that this action was being contemplated. We plan to ask for an expedited hearing so the enormous benefits of this merger can be fully reviewed. The DOJ has the burden of proving alleged anti-competitive affects and we intend to vigorously contest this matter in court.



At the end of the day, we believe facts will guide any final decision and the facts are clear. This merger will:



* Help solve our nation’s spectrum exhaust situation and improve wireless service for millions.

* Allow AT&T to expand 4G mobile broadband to another 55 million Americans, or 97% of the population.

* Result in billions of additional investment and tens of thousands of jobs, at a time when our nation needs them most.



We remain confident that this merger is in the best interest of consumers and our country, and the facts will prevail in court.

Yes we want T-Mobile, as a separate entity.

Via TechCrunch

T-Mobile CEO Robert Dotson Will Resign In A Year Or So

T-Mobile CEO Robert Dotson Resigns http://snapvoip.blogspot.com/
BELLEVUE, Wash.--(BUSINESS WIRE)--Robert Dotson, president and chief executive officer of T-Mobile USA, Inc., has informed Deutsche Telekom (DT) of his intent to transition to new opportunities in 2011 after 15 years of service with T-Mobile USA. In order to ensure a smooth transition of leadership, Dotson has committed to stay actively engaged in the business until May 2011. His designated successor is Philipp Humm, an experienced DT executive and former CEO of T-Mobile Deutschland. Humm is currently responsible for sales and service in Europe as chief regional officer (CRO) Europe. After a period of transition with Dotson, it’s the intention that Humm will take over as CEO of T-Mobile USA in February 2011, while Dotson will remain on as a T-Mobile USA non-executive board member until May 2011.

"For 15 years it has been a privilege to lead the talented T-Mobile USA team in its journey to become a leading U.S. wireless provider. The time is right to ensure a thoughtful leadership transition to position T-Mobile USA for the next 15 years of opportunity,” Dotson said. “It has long been my intent to step away from the business at this stage in my life in order to devote more time to family and to take on entirely new and unique challenges. That change can only be made possible if a suitable successor is in place. Over the next year, it will be my relentless focus and responsibility to work closely with Philipp to ensure marketplace success, and to enable a seamless leadership transition."

René Obermann, CEO of Deutsche Telekom, said, “I sincerely regret Robert’s decision to leave, however I absolutely respect his decision, and am most grateful that he has offered to stay on for another year in order to work with Philipp to ensure continuity in running the business. Robert’s pioneering leadership in establishing T-Mobile USA as one of the leading players in the U.S. mobile market has not only been recognized by us at Deutsche Telekom, but by the industry as a whole. An agile mind, business acumen, strong leadership, entrepreneurial spirit and team work – these are some of the many excellent qualities that have made Robert such an invaluable leader within the DT Group.”

Coming to T-Mobile USA as president and CEO designate, effective July 1, 2010, Humm brings significant experience in the U.S. marketplace. Before joining Deutsche Telekom, Humm worked for ten years for a number of U.S.-based companies including McKinsey & Company, Procter & Gamble, and Amazon in senior level positions. Humm has since served as CEO of T-Mobile Deutschland from 2005 until 2008. He took over a company in a declining market and successfully turned it around during his tenure to become Germany’s leading mobile operator in both subscribers as well as service revenues. He was also responsible for the successful market introduction of the iPhone® in Germany in 2007.

Humm, 50, has strong international experience, and in his present position as CRO Europe, he is responsible for international sales and customer service, as well as steering the five national mobile companies in Austria, the Czech Republic, the Netherlands, the UK and Poland. In this role he has played a pivotal part in the recent, successful establishment of the joint venture in the United Kingdom between T-Mobile UK and Orange UK of France Telekom.

“With Philipp, we have an excellent leader with an outstanding track record in the mobile industry,” Obermann added. “During his five years at Deutsche Telekom, Philipp has proven bold leadership and intense determination to succeed. His strong vision within the industry as well as his courage to transform, combined with his entrepreneurial qualities, ensures that he has all the credentials to lead T-Mobile USA as a strong competitor in a very dynamic market. I am more than confident that both Robert and Philipp will work closely together to create a smooth transition of leadership, as well as moving the business forward.”

Humm said, “It is a privilege for me to take over the reins from an established leader such as Robert. I look forward to working with him and the T-Mobile USA team during the transition phase, and I relish the prospect of leading such a proud company as T-Mobile USA - a force to be reckoned with in one of the largest markets in the world. It is a great challenge, and I am grateful for having been given the chance to make a difference.”