5959281502 58d85632c4 mVerizon 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)

Top Rated Comments

DeaconGTG Avatar
178 months ago
Of course he's publicly in favor of it. If the merge is successful, Verizon's going to try to do the same with Sprint in the next few years. He can't have his words come back to haunt him.

But I'm sure there's a tiny part of him that would love to see AT&T fall flat on its face. :p
Score: 4 Votes (Like | Disagree)
hcho3 Avatar
178 months ago
AT&T and Verizon look like they are the biggest competitors in the US, but no... no no. They are also closest friends. They can just team up and be duopoly on wireless networks.

The Verizon was praised for having a good networks, but expensive pricing compare to T-mobile.


With t-mobile going bye-bye, they will be more happy because fewer people will make jump on other carriers.
Score: 2 Votes (Like | Disagree)
chrmjenkins Avatar
178 months ago
Of course he's publicly in favor of it. If the merge is successful, Verizon's going to try to do the same with Sprint in the next few years. He can't have his words come back to haunt him.

But I'm sure there's a tiny part of him that would love to see AT&T fall flat on its face. :p

I think you pretty much nailed it. The best part is that the point he is making is actually valid in the way he is presenting it, so it's not not distorted and loaded with Verizon's own intentions baked in. AT&T could do better with more spectrum, no doubt. The part where he is cheering for AT&T's customers to have more bandwidth is a bit dubious though. :D
Score: 2 Votes (Like | Disagree)
toomanyipods Avatar
178 months ago
Of course Verizon is in favor of the merger . . .

A merger can only lead to a moderate exodus of customers from to Sprint and Verizon. With fewer players, it takes less effort to adjust to, or collude with competitors. Spectrum is an issue, but removing competition is definitely NOT the answer for consumers.
Score: 2 Votes (Like | Disagree)
SeaFox Avatar
178 months ago
ATT-mobile and VeriSprint....? Then when those two companies merge it will be ATTVERISprinT-Mobile? :confused:
No it was just be "AT&T"



Fullsize version here: [link] (http://img28.imageshack.us/img28/9947/atthistory.jpg)
Score: 1 Votes (Like | Disagree)
takezo808 Avatar
178 months ago
I agree. There is no way he would be against this because if it is not approved it limits Verizon's future acquisitions. If this deal is approved it helps set a precedent for the approval of a Verizon-Sprint merger. Make no mistake AT&T and Verizon want a duopoly so they can dictate pricing. Believe me we will pay big prices as customers in the future if these companies don't have strong smaller competition.


ATT-mobile and VeriSprint....? Then when those two companies merge it will be ATTVERISprinT-Mobile? :confused:
Score: 1 Votes (Like | Disagree)

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