By now, you should’ve all heard about AT&T’s somewhat-surprising deal with T-Mobile. BusinessWeek recently sat down with AT&T CEO Randall Stephenson, who mentioned that this impending deal with T-Mobile was to improve service and have better quality and capacity for all phones on the AT&T network.
Said Stephenson: “Virtually on the day you close the deal, getting a 30 percent lift in capacity in New York City: that’s a significant improvement in call quality and data throughput.” This is a big promise to fulfill, especially when it can be verified on the day that the deal closes.
Stephenson also spoke up on the opposition against the merger. He claims that cell phone market competition is intense and that it will continue to be competitive even after this merger. He remarked, “It is intense before we do this transaction, it will be intense after we do this transaction.” This deal could also potentially reduce costs for those AT&T customers who are overseas since T-Mobile has an international area that would do well with the US area of AT&T. Though this is done for the “good of the people”, Stephenson stands to make much profit if this deal is approved. If approved, AT&T has said that everything should be finished within a year from now.
I think Stephenson should stay true to his word of having improved service. Many current T-Mobile customers were former disgruntled AT&T customers who complained a lot about AT&T’s service (that and customer service) and I suspect that many of those customers are already thinking of terminating their contract with T-Mobile because of this upcoming deal. Of course, the deal has yet to be approved but if it is, expect many customers to switch over to Sprint or Verizon or perhaps even another phone network.
What do you guys think? Do you think Stephenson will make good on his promise?