AT&T execs defend T-Mobile merger

AT&T's proposed $39 billion merger with T-Mobile will provide better network and data coverage for customers of both companies, AT&T's top California executive said Thursday.Wholesale Battery

Consumer advocates said the cost might be less competition, giving AT&T and rival giant Verizon a combined 80 percent share of the U.S. mobile market, and higher cell phone bills.Wholesale Computers

AT&T announced March 19 that it would buy T-Mobile USA from Deutsche Telekom, a combination that would make it the nation's largest wireless carrier. The deal faces intense scrutiny.LASER POINTERS

It must be approved by both the Federal Communications Commission and the Department of Justice. Earlier this week, the U.S. Senate Judiciary antitrust subcommittee said it would hold hearings on the matter May 11.

Also, state attorneys general in New York, Connecticut and Minnesota have raised concerns.wholesale spy camerca

Ken McNeely, president of AT&T California, said combining the companies' two networks would allow its coverage area to extend over 95 percent of the country, better than AT&T's previous goal of 80 percent coverage.

The company could also improve its capacity in areas where both networks are present.wholesale ebook reader

"We see it as not as redundant but really as complementary," McNeely said. "Even in areas where we have overlap, the denser the network, the better the customer experience."

In addition, he said Deutsche Telekom was not prepared to invest in a strong data network, certainly nothing like AT&T's 4G LTE service now being rolled out nationwide.wholesale android tablet

"It's a really a win-win for both the AT&T customer and the T-Mobile customer," he said in a telephone interview.

Such a merger might be a detriment to consumers' pocketbooks, said Parul P. Desai, policy counsel for Consumers Union.

"AT&T wireless plans typically cost consumers up to $50 more per month than comparable plans from T-Mobile, and consumers are consistently less satisfied with the service they get from AT&T than T-Mobile," she said in a statement earlier this month.

Also, in a telephone interview Thursday, Desai suggested a better use for AT&T's money.

"AT&T does not need T-Mobile's spectrum to improve their network and reach 95 percent of the country," she said from Washington, D.C. "They should invest in building out a quality network instead of just trying to buy up somebody else's spectrum."

Linda Sherry, national priorities director for Consumer Action, said the continuing consolidation of the mobile industry is reducing competition.

"It's concerning that we get fewer and fewer companies in the space, so when you go out to try to fit these services into your budget, you find less to choose from and more expensive prices," she said, also by telephone from Washington.

McNeely disagreed

"This is a highly competitive market," he said. "Even after the merger, there will continue to be three national players - AT&T, Verizon and Sprint - and then in most markets, three to four regional players, as well, competing for customers."

Sprint has raised strong concerns about the proposed merger, which would leave it a distant third in the wireless industry.