What happens to AT & T and T-Mobile Now? Congressman Boucher Weighs In

Last month, AT & T got away to buy T-Mobile USA from Duetsche Telekom after much criticism, particularly from the Department of Justice and the FCC. Merger receive a lot of support, but critics proved difficult.

Are you for or against AT & T / T-Mobile merger? We want to know.

Former Congressman and Internet Innovation Alliance Honorary Chairman Rick Boucher supports the merger, as he explained in an earlier interview with WebProNews, because she believes it will help spur innovation, economic development, and employment. We recently spoke with him again to discuss the implications of the deal not going through.

“I was not surprised by the decision given what happened before the time the application is withdrawn,” the congressman said.

He went on to explain that the merger would bring If you recall, one aim of the merger is to bring high-speed broadband connection to 97 percent of the U.S. in 6 years’ improvements we desperately need. “Which is almost met President Obama’s broadband plan. Since the deal fell threw, deputy Boucher told us that, in order to meet the President’s goal, the government had to intervene in investments.

“At a time of concern about deficit spending, investment is hard to find,” he said.

For AT & T, deputy Boucher told us that he thought the company would still try to meet the goals set by the merger in mind, but it will take longer than six years to fill. With T-Mobile, AT & T will save a significant effort to enable 4G, but now need to produce its own currency.

“My guess is AT & T, at this point, focus on strengthening the core network build 4th generation technology slowly with the market, because it is an opportunity for investment to achieve the highest level of return, “certain members of the Congress. “Instead of going to the country in 6 years, there is no doubt that the merger occurred, which can now take a little time.”

Some reports said that AT & T is talking to some of the owners of 700 MHz licenses and the process took as part of a backup plan in case of T-Mobile deal fell threw. It may well be true because companies need more spectrum.

Congress is also optimistic about T-Mobile said it is in, however, “strong position in a practical competitor.” He said it was a challenge to the deployment of 4G.

“The challenge facing the T-Mobile is getting the capital needed to use the 4th generation technology across the network,” he explained.

While AT & T must pay T-Mobile $ 4 billion ($ 3 billion cash and $ 1 billion spectrum right), members of Congress saying that T-Mobile will still need a lot more more funding. What’s more is that the parent company of T-Mobile, Deutsche Telekom, said that, before the merger, they want out of the U.S. market and will not invest more. If this is the case, T-Mobile may have a tough road to continue.

Because the future of T-Mobile is still in question, there is some speculation about whether or not AT & T will make another attempt to buy the company. Congressman Boucher told us that, at this point, it seems that the company is heading in two different directions.

Sprint also been touted as a potential buyer of T-Mobile, but the thought of Congress as merger deal with the same scrutiny that the AT & T / T-Mobile made.

“I think it is hard for one of the big carriers to buy T-Mobile, given the position of the Justice Department and the FCC,” he said.

Speaking of big carriers, he said it was “impossible” for Verizon to make such a purchase. If the carrier were to buy it, Congress thought it was much smaller than T-Mobile.

Another possibility is to sell T-Mobile section, which is not what Congress Boucher consider to be a good decision.

“This is a world where the dominant business,” he said. “I think Deutsche Telekom will make a decision very carefully based on the relative value of the business offer is made.”

In terms of the mobile industry as a whole, Congress Boucher told us that the merger is not going through negative for cell phones, consumer, and the economy.

“Long-term effect is that we get the deployment of the 4th generation with 97 percent of the American public over the next decade and a half,” he said. “I think this is a huge negative impact.”

“Wireless technology the answer,” he added. “We will bring broadband to broadband have-nots – I’m not sure what the answer is now.”

What do you think the next step is not only AT & T and T-Mobile, but also in the mobile industry? Please share your thoughts.