Wednesday, December 21, 2011

Arrogance Or Inevitable? 

The news of AT&T's failed merger with T-Mobile was stunning even though it was expected.  AT&T put huge resources toward the merger, including a $4 billion payment to T-Mobile should the deal not go through.  From a PR perspective, one asks whether AT&T was arrogant in thinking it could force the merger through or whether failure was inevitable given the changed environment in Washington DC.  In another administration, the merger might have gone through with conditions placed on AT&T for what it could charge cell phone users.  Was there something AT&T missed in its effort?  Perhaps, but it spent hundreds of millions lobbying the White House, the Justice Department and the FCC.  What it did not expect was how adamant they would be.  AT&T also didn't seem to make much effort in building grassroots support for its case.  That might have been because there wasn't much of an argument that it could make to customers.  There would have been more spectrum to use, but somehow customers would pay for the purchase of T-Mobile.  

Whatever the factors for the failure, it was one of the largest PR bungles of the year.  


Post a Comment

This page is powered by Blogger. Isn't yours?