Research Paper Provides Real Story Behind AT&T/T-Mobile Merger

T-Mobile Was Stuck in Neutral, AT&T Is Best For Workers and Consumers

The Communications Workers of America today released a research paper documenting in detail how a merger between AT&T and T-Mobile will better serve consumers, workers and communities than the only other alternative: A Sprint/T-Mobile merger.

“Sprint or AT&T, The Real Story Behind the Proposed AT&T/T-Mobile Merger” reveals how T-Mobile’s owner, Deutsche Telekom (DT), had determined to stop investing in T-Mobile and the only two serious contenders for merger were AT&T and Sprint. AT&T is by far the best match according the detailed analysis.

“There are four facts that are brought to light here,” said CWA Senior Director George Kohl. “First, DT was seeking a buyer. Second, AT&T or Sprint were the two leading suitors. Third, merging with Sprint would be technologically and financially burdensome and finally, AT&T is the best option for consumers and workers.”

The fact that Sprint carries a BB - or “junk” credit rating and a merger would have added billions in debt to the highly leveraged company are discussed, as well as the fact that a merger would have brought major operational and technological problems. Further, a Sprint/T-Mobile merger would only exacerbate Sprint’s long history of outsourcing work outside the U.S. and trampling labor rights here in America.

“AT&T is financially strong and has the resources to build out broadband to 97 percent of American homes and businesses, a key to our national competitiveness in the years to come,” Kohl said. “Finally, AT&T allows its workers to make their own decision about whether or not they wish to join a union – the way every company should.”

Download the full research paper at: www.cwa-union.org/att-tmobile-real-story