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The AT&T / T-Mobile senate hearing: deciphering the war of words
Over the course of the next year, AT&T and its opponents will be in the ring, duking it out in a war of words in attempt to convince the government that a $39 billion takeover of T-Mobile by AT&T should or should not take place. Consumers have the most to win or lose here, yet we are resigned to watching from the sidelines as both sides lob countless facts and stats at each other like volleys in a tennis match. If you look at the merger process as a stairway to climb up, AT&T is still near the very bottom. Every rung will be full of intense scrutiny as it is: if the two companies are allowed to merge, the national GSM market becomes a monopoly, and the wireless industry as a whole would shift to only three national players plus a handful of less-influential regional carriers. The carrier's going to blow as much as $6 billion if the merger is not approved -- almost enough to buy Skype -- it can't just expect to put up some feel-good facts and stats to win the hearts of the decision-makers. AT&T has to be absolutely sure it'll come out victorious in the war, else it risks losing the trust (and money) of its shareholders. But to accomplish such a feat, it has to be on top of its game. There was no better time to show off what it's made of than last week's Senate Judiciary Committee hearing conducted by the Subcommittee on Antitrust, Competition Policy and Consumer Rights. When the Committee entitles a hearing "Is Humpty Dumpty Being Put Back Together Again?," it's either exercising a sense of humor or a preconceived notion of the merger due to the implication that Ma Bell is simply reforming. CEO Randall Stephenson appeared as a sacrificial lamb, going before Congress and his opponents to explain his side of the story, answer hardball questions, and endure a hard-hitting round of criticism. Continue reading as we take you topic by topic and examine what he -- and his opponents -- had to say about the merger.
AT&T warns customer that emailing the CEO will result in a cease and desist letter
Sure, Steve Jobs might be a one-man email PR machine, but his pal Randall Stephenson at AT&T doesn't appear to be quite as gregarious -- as reader Giorgio Galante found out today, sending AT&T's CEO two emails in two weeks results in a phone call from AT&T's Executive Response Team and a warning that further emails will result in a cease and desist letter. What did Giorgio's emails say? The first was a request to bump up his iPhone eligibility date and a request for a tethering option, and today's outlined his displeasure with AT&T's new data rates and ultimate decision to switch to Sprint and the EVO 4G. That prompted "Brent" to call Giorgio back and thank him for the feedback, but also politely warn him that further emails would be met with legal action. Ouch. As you'd expect, AT&T just lost itself a customer. We've followed up with Ma Bell to find out exactly why they went the lawyer route instead of oh, say, filtering Randall's email -- we'll let you know what they say. P.S.- Amusingly, Giorgio says he emailed both Randall Stephenson and Steve Jobs last year about offering tethering and actually got a response from Steve -- maybe these two CEOs need to talk about more than data rates and service quality the next time they meet up.
AT&T CEO admits iPhone won't be exclusive forever
It may not be all that shocking from a common sense point of view, but AT&T CEO Randall Stephenson's statement that "there will be a day when you are not exclusive with the iPhone" is still quite a departure from anything he's said in the past and, given the stakes involved, pretty darn notable. That word came at Fortune's now happening Brainstorm: Tech conference, where Stephenson unsurprisingly didn't elaborate on any negotiations with Apple, and only went so far as to say that he thinks AT&T's partnership with Apple "works really, really well -- maybe as well as any strategic partnership we have." Of course, none of that means exclusivity is going away anytime soon, and you can pretty safely bet that AT&T will keep on pushing as long as it can.
