Tuesday, March 22, 2011
The announcement that AT&T is planning to buy T-Mobile is also the opening of a major PR battle for AT&T. AT&T has to convince the Justice department and regulators that the merger passes anti-trust hurdles and that AT&T won't raise cell phone rates unreasonably once the merger is done. None of this will be easy. However, the cell phone market is consolidating into fewer players whether or not this merger goes through. That may be at the heart of AT&T's argument. Whatever approach AT&T takes to convince the Justice department and regulators, it will be months of full employment for both lobbying and PR staff. Look for major concessions from AT&T to get the deal done.