Section: News, Communications, Cellular Providers
During Wednesday?s United States Judiciary Subcommittee hearing about AT&T?s takeover of T-Mobile USA, one of the hot issues involved wireless spectrum. AT&T and T-Mobile claim it needs more of it, but those in opposition of the merger beg to differ. We?ll cover more details about the hearing soon, but for now, let?s focus on the spectrum issue.
T-Mobile Testimony
T-Mobile USA CEO Philipp Humm testified that T-Mobile USA does not possesses the necessary amount of wireless spectrum to roll out a LTE network. Humm claimed that T-Mobile is running out of spectrum and faces a complete exhaust within a couple years. Under these circumstances, T-Mobile does not have the ability to continue to compete with the other three major U.S. mobile carriers for much longer. Humm also said that Deutsche Telekom, the parent company of T-Mobile USA can?t invest anymore resources into T-Mobile USA to remain competitive. If the merger between T-Mobile and AT&T is approved, Humm declared that T-Mobile customers will get more coverage provided by AT&T?s spectrum shortly after the deal is done. They?ll be able to benefit from LTE, HSPA+ and GSM standards.
AT&T Testimony
AT&T CEO Randall Stephenson reiterated the points AT&T made in a company blog post in mid-April. AT&T also believes it?s running out of spectrum. By 2015, AT&T expects the wireless data traffic it harbors will be eight to 10 times higher than what it is now. Stephenson said the lack of spectrum will slow the growth of mobile internet technologies in the future. Stephenson insists AT&T can?t wait to achieve more spectrum because it will take years for new spectrum to open up. Should the merger be approved, AT&T will provide 97% of U.S. customers with LTE service.
Sprint and Public Knowledge Testimony
Of course, not everyone is for the merger. Gigi Sohn, president of Public Knowledge testified that ?T-Mobile customers are irate? over this possible merger. On the subject of spectrum, Sohn said that AT&T could provide greater service to rural areas without acquiring T-Mobile. In a similar argument, Dan Hesse, CEO of Sprint, said that AT&T is ?warehousing spectrum.? Hesse said ?It [AT&T] doesn?t use the spectrum it has.? Contrary to what AT&T claimed, Hesse said that only 1% of the U.S. population will get coverage following the AT&T and T-Mobile merger.
Full Story ? Written by Jeremy Hill for Gadgetell. Comment on this Article ?
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Source: http://www.insidecellphone.com/att-and-t-mobile-the-argument-over-spectrum/
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