Tuesday, 21 June 2011

Sprint explains why AT&T doesn't need T-Mobile's spectrum


Sprint explains why AT&T doesn't need T-Mobile's spectrum

Sprint explains why AT&T doesn't need T-Mobile's spectrumSince the announcement of AT&T's intent to purchase T-Mobile for $39 billion, Sprint has been the most outspoken critic. Sprint has insisted that the acquisition would hurt consumers and the industry. But AT&T has stayed on-message, saying that the acquisition is necessary in order to relieve its spectrum crunch.

So now Sprint has responded by laying out how AT&T could relieve the alleged spectrum crunch without purchasing T-Mobile, and spend less money. Sprint has submitted a "technical analysis explaining how AT&T could increase its network capacity by more than 600 percent by 2015."

Their analysis, Sprint claims, would demonstrate "that AT&T's purported rationale for the proposed merger - that there is no other way to meet its projected data service demand growth - is simply unfounded."

So how would they accomplish this? As the grossly oversimplified diagram indicates, AT&T could develop its unused spectrum, accelerate their 4G buildout, and make their existing network more efficient. Of course, those steps don't include T-Mobile's existing customer base, which might eventually offset the $39 billion price tag.

We can't say if Sprint's analysis is correct. But we do know that Sprint isn't really concerned for consumers' welfare. That's not to say that they don't care at all; we're just saying that Sprint's self-preservation is Job #1.

source: TmoNews

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