Sep 22 AT 9:45 AM Anthony Domanico 35 Comments

Verizon likely to support AT&T-Mobile merger, stops short of official endorsement


Speaking at a Goldman Sachs investor conference, Verizon CEO Lowell McAdam suggested that the government either needs to allow the T-Mobile and AT&T merger to go through or figure out a way to provide more spectrum to the telecom industry.

Though Verizon Wireless is holding off  officially endorsing the proposed merger until they learn the outcome of the court case and how it will impact Verizon, the following statement clearly suggests Verizon will support the merger.

AT&T buying T-Mobile is like gravity. It had to occur. T-Mobile has spectrum, but no capital. And AT&T has the capital, but needs the spectrum. If the government wants to stop this merger, it needs to get more spectrum out on the market.Lowell McAdamVerizon Wireless

We sense there’s an ulterior motive here, as an approval of the AT&T-Mobile deal would open up the doors for Verizon to make some strategic acquisitions of its own. Sascha Segan from PCMag said it best:

Verizon supports ATT-Mobile merger because if it doesn't go through, VZ won't be allowed to buy other major carriers either.Sascha SeganPCMag

Regardless of their motives, we tend to agree with Verizon’s claim that the telecom industry needs more spectrum if it is to serve the needs of the entire population. If the government is unwilling to provide this spectrum to telecom companies, then a deal between AT&T and T-Mobile makes sense. T-Mobile has the spectrum that AT&T needs to build out their network, and T-Mobile simply doesn’t have the capital to build it out themselves. For now, we’ll just have to sit back and see what happens.

What do you guys think? Should the merger be allowed to go through, or should big government figure out a way to provide additional spectrum to the telecom industry (or both)?

Via: VZBuzz

Source: CNET

Anthony loves all things technology, from hardware to apps and games. You can connect with him via Google+ or Twitter by clicking one of the fancy doo-dads above.

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  • SparkyXI

    I never thought of it that way, but as I do, I realize that it does make a good bit of sense.

    • About time

      Who cares, just give us the new iPhone!!!!

    • thel0nerang3r

      While this comes from Sprint,
      it still has merit. Look at ATT SEC filings, it stated that it’s cost to upgrade would be arond 4 billion or so.
      Maybe I’m disillusioned with companies, but from what I’ve seen if ATT does a price hike, VZW is not far behind. Also, looking again at their SEC filings. ATT lists it’s acquisition of Tmobile as “need to increase it’s ARPU” by removing low cost competitors. In other words, you are out of luck if you want a GSM phone, ATT Will be the only game in town. In the US monopolies have not been known for offering low prices. Just my 2 cents.

  • ferman

    I’ve been saying this for a while. I’m glad someone else has figured it out. :)

  • Darwin

    It does pave the way for Verizon to make some future questionable acquisitions and while we consider AT&T and Verizon to be enemies let’s no forget that they are two of the biggest pieces of old Ma’bell

  • RockinEvo

    Lol really y’all want this merger to happen lets take a sec n look at this, att buys tmobile now the new att n Verizon can adjust the plans as they see fit, next the big greedy V has their eyes set on sprint so we will have just have expensive Verizon and Expensive att doing nothing for the consumers and raking in the cash. People stop looking at this as a positive you really think Verizon wants a good ol competition.

  • 1upper

    Instead of buying T-Mobile how about they use those billions to increase their own wireless spectrum, all just being greedy

  • Genjinaro

    Verizon: Hey *nudge, nudge* AT&T umm, our investors want to rent out the city of Dubai for a month, every month.. so uhh…a price hike by ourselves would loo-

    AT&T&T: ;-) ;-) Say no more! Our board will join you right after these price hiking memos go out.
    We can mail them out together. Why spend our money when we can ream every U.S. citizen?

    Random Board-Member: Let’s put the Magenta Girl on the cover-letter of the memo’s wearing a stone strap-on!

    Verizion: *Mwahaahahahaha!

    AT&T&T: Gyahhahahahaha!

    VerizonA&T&T&T: Muhwahahahahahahahahahahahahaha!

  • ratatosk

    Face it. Verizon would love to return to the cellular duopoly where there is virtually no competition. AT&T buys T-mobile. Verizon buys Sprint. Then we’re down to two carriers in most of the U.S., just like back in the 1990s.

  • YellowDucati

    Of course Verizon is for it. They would benefit from the limited selection of wireless providers.

    Step 1. ATT price goes up
    Step 2. Verizon price goes up
    Step 3. ……
    Step 4. PROFIT.

  • themanwithsauce

    Just to piss off AT&T and Verizon, I want the US government to offer up more spectrum and infrastructure….but give an outside company first crack at it. Maybe vodafone or O2 would want to enter the US. Or perhaps one of the current budget brands wants to expand a bit? If that happens, then AT&T, you can have your merger :)

  • http://None CaribGrackle

    I say go on with it! Buying up is also part of the competition and I would love to see what Verizon next move is going to be.

    • Chahk

      You don’t need to be a psychic to see what Verizon’s next move will be. Buying up Sprint, of course. The less competition – the quicker VZ and ATT can hike up their prices and cut service.

      • wirelessguy

        they would not be that stupid ;) or maybe they would be, Sprint is still trying to get the Nextel deal right and their network is a giant mess…

      • http://None CaribGrackle

        Is not like Sprint are forced to surrender to VZ. Also, I’m not from US, so good look with that merge and all the paranoia is creating, really.

  • SliestDragon

    Half way through I was about to get my tin-foil conspiracy hat out, but this actually makes sense. They actually might have more to gain than loose with this deal. Hmm. Cool article. Really made me understand more about this merger, even if it was just a small bit of info I learned. :)

  • snowbdr89

    So does this mean the now network will soon be the now verizon network? God id laugh my ass off if big red swallowed up sprint because that would mean dick yarrell would be a verizon customer. : )

  • DownSouthLivin

    What are all of you lemmings talking about? Now it makes sense to you? Why, because the CEO of the next biggest wireless company who has everything to gain from this acquisition says it makes sense!? Guess what; it still means less choice and higher prices for all of us. When did this become acceptable? A few weeks ago it was all pitch forks and torches protesting this acquisition and now most of the people are for it? How easily you guys are turned and led right into the slaughter house just because some CEO makes a blanket statement approving this deal.

    • Anthony Domanico

      Pr0tip: I’ve always supported the acquisition.

  • WirelessGuy

    There is no need for more spectrum… they only want to continue to say there is not enough because they make it a scare resource. What they need is better spectral efficiency which will happen with companies like Lucent and others, its just a matter of time. If they need the spectrum they should just buy it from T-mobile, you dont need to Buy T-Mobile to get their spectrum.

  • Richard Yarrell

    This is pretty typical of verizon to want something to happen for there benefit. Nice photo opportunity the CEO of verizon SUCKING UP TO THE EMPIRE OF GOOGLE can’t blame them with all those sorry devices on the most expensive network in

  • Richard Yarrell

    This is pretty typical of verizon to want something to happen for there benefit. Nice photo opportunity the CEO of verizon SUCKING UP TO THE EMPIRE OF GOOGLE can’t blame them with all those sorry devices on the most expensive network in the United States. All the SUCKING UP and wanting the merger to go thru won’t matter now THIS MERGER IS DEAD. The government will figure out the spectrum issue since all this is really what it’s about. Meanwhile sprint held there ground and made sure the merger did not happen. I applaud that totally…

  • Richard Yarrell

    And for the record.. Sprint will never need verizon for anything. People would love to forget it was sprint the third carrier in the US that brought 4G to market first as well as the first android 4g devices. It took all the other carriers over 1year to catch up.. WHAT A SHAME.. People hoping for verizon to purchase sprint are idiots and there definitely is many on this site.. ie @snowbdr89 and squiddy20 to single out a few.. In the real verizon can only wish they were sprint and truly had a existing working relationship with Google that was respected in the technology game. All verizon cares about is themselves plain and simple..

    • snowbdr89

      Id never want big red to putchase you’re pathetic network dick the moron!!

    • snowbdr89

      Dick sprint has no 4g so dont say they was the first, wimax is more like dial up internet..

    • squiddy20

      And for the record, was it REALLY necessary to pollute the comments section with 3 separate posts?
      Also “for the record”, NONE of the carrier’s “4G” is REALLY 4G, especially Sprint’s. Originally, the standard for 4G was supposed to be around 100 MB/s or something. But then all the stupid carriers (most notably Sprint) started throwing around the magic “4G” word so the consortium behind the 4G standard was FORCED to lower the standards. T-Mobile and Verizon’s “4G” is the closest yet to “true” 4G speeds. Try checking the facts once in awhile.
      “It took all the other carriers over 1year to catch up” and in that year, Verizon has surpassed Sprint with data coverage and speed. Don’t believe me? Look at the lists of cities that Sprint has enabled 4G in compared to Verizon’s list. Verizon’s list is at least twice as long. “WHAT A SHAME”

  • Liechtenstein

    America must be a terrible country to live in, only two big phone carrieres to choose from, NSA observes every phone call, no health insurance, the whole country is bankrupt or belongs to the chinese government ($trillions in debts). What a downfall….

    • themanwithsauce

      A bad day in Manhattan beats a good day in bahgdad. Just sayin. First world problem – pick the less evil of two cell phone carriers. Third world problem – pick between the less rotten of two food sources. Please keep this in mind for the future.

  • curtisas

    ORRRR, they could all just play nice together and share the spectrum so that we can take any phone to any network and end this stupid exclusivity BS…

  • Mark

    If AT&T buys T-Mobile and phone service becomes expensive, I will simply switch to a cheap regional carrier.

  • http://Note Uncemister


    *not really