T-Mobile Subsidiary, Dealer Express Doubts Over AT&T Merger

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There's dissension in the ranks over the AT&T/T-Mobile merger as a T-Mobile subsidiary, a T-Mobile dealer, and the company's roaming partners have all come out with serious concerns about the merger.

In a filing with the Federal Communications Commission, Iowa Wireless Services -- which is 54% owned by T-Mobile -- complains that it doesn't trust what it's heard from AT&T about the effect the merger would have on its business.

"Iowa Wireless has not been able to obtain any information regarding how -- if at all -- AT&T will incorporate Iowa Wireless into its long-term plans, nor has Iowa Wireless been able to determine what impact, if any, the transaction will have on Iowa Wireless's rural customers with respect to continued network access at reasonable rates," the company writes.

AT&T is talking to Iowa Wireless. It's just that the smaller carrier doesn't appear to trust the larger company's assurances. "AT&T has recently communicated to Iowa Wireless that AT&T will, consistent with its practice in similar transactions, honor any contractual and legal obligations arising out of the T-Mobile acquisition," the smaller carrier writes. One big issue appears to be AT&T's controversial pledge to shut down T-Mobile's 3G network so it can re-use the spectrum for LTE. That will leave rural areas run by T-Mobile partners "stranded," Iowa Wireless says, and could actually lead to less broadband in rural regions. "Some [rural carriers] that have not yet started to deploy wireless broadband in their communities are now reluctant to do so due to the uncertainty associated with AT&T's plans to move T-Mobile's network away from UMTS/HSPA," the company says. Iowa Wireless is also concerned about the roaming rates it will get from AT&T, and that AT&T won't honor partnership agreements where T-Mobile said it would work together with, rather than competing directly against certain rural carriers, the company says.


T-Mobile Subsidiary, Dealer Express Doubts Over AT&T Merger T-Mobile Subsidiary Expresses Doubts About Wireless Merger (National Journal)