Verizon CEO Lowell McAdam spoke out strongly in favor of AT&T's proposed merger with T-Mobile on Wednesday. The merger has been challenged in two separate lawsuits by the Department of Justice and Sprint.
McAdam, at an investor conference, said the AT&T/T-Mobile "match had to occur" because spectrum is such a valuable commodity. AT&T has proclaimed the need for increased spectrum as the primary benefit behind the merger, saying "planned combination with T-Mobile by far the surest, fastest, and most efficient solution to the spectrum and capacity challenges we face."
As reported by BGR:
“I have taken the position that the AT&T merger with T-Mobile was kind of like gravity,” McAdam told investors. “It had to occur, because you had a company with a T-Mobile that had the spectrum but didn’t have the capital to build it out. AT&T needed the spectrum, they didn’t have it in order to take care of their customers, and so that match had to occur.” The CEO continued, noting that he has told the Federal Communications Commission and other government officials that blocking AT&T’s acquisition of T-Mobile without providing a solution to the current spectrum crunch will ultimately harm American consumers.
(Photo courtesy Flickr/Fortune Live Media)