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Sunday, March 27, 2011

Count on AT&T finalizing T-Mobile purchase

In case you were wondering whether the Feds will let AT&T buy T-Mobile from Deutsche Telekom, this story from Edward Wyatt of the New York Times should put any doubts to rest. Bet on AT&T, even though some regulators have been talking tough about the merger.

Why?

Well, first there are the cupcakes. As part of its lobbying effort, AT&T supplied regulators with a stream of cupcakes (apparently there’s no rule that says you can’t). But, Wyatt reports, there are more important considerations, even, than the cupcakes.

They aren’t about competition, bandwidth, or dropped iPhone calls. AT&T is one of the biggest corporate spenders in the U.S., and it employs one of the best lobbyists, James W. Cicconi. So, again, whatever is said between now and the final merger, you can pretty well count on Ma Bell getting her way.

So, you can look at it from an idealist’s point of view and be outraged that a giant corporation will be able to lock down a huge chunk of the wireless marketplace, restricting consumer choice. Or you can look at it this way: At least AT&T isn’t an oil company.

But then again, oil companies pretty much get their way all the time, too.