Dispute: Would AT&T’s T-Mobile acquisition create or kill jobs?

In a letter to President Obama today, U.S. Rep. Heath Shuler and 14 of his Democratic colleagues urged the administration to step in and end the Justice Department’s attempt to block AT&Ts proposed $39 billion acquisition of T-Mobile USA from Deutsche Telekom.

“AT&T has announced plans to repatriate 5,000 jobs that are currently being performed overseas,” they write in the letter. “In addition to these 5,000 jobs, a recent study has shown that the merger will create somewhere between 55,000 and 96,000 new jobs to integrate the two networks and upgrade facilities.”

That’s bogus, says Sprint.

“Make no mistake, AT&T’s proposed takeover of T-Mobile will eliminate tens of thousand of jobs across the country,” said Sprint spokesman John Taylor in a response this afternoon.

The company, which has opposed AT&T’s acquisition of T-Mobile from the beginning, called the study cited by the legislators flawed, saying that “the overall investment for the combined companies will be substantially reduced if the proposed transaction closes.”

Previously: Blindsided by DOJ suit, AT&T says it will fight for T-Mobile

  • Randall Tabor

    DT has already decided they are not investing in LTE in the United States. Based on that alone T-Mobile becomes irrelevant in less than three years. Jobs lost at T-Mob within 3years- all. Machinations may be suspected but marginalization is assured.

  • http://twitter.com/Vroo Vroo (Bruce Leban)

    merger cost jobs -create = 5 million hits on Google
    merger create jobs -cost = 2 million hits

    In other words, there’s a lot more written about mergers costing jobs than creating them. I’ve never heard of a merger the size of this deal creating jobs. And the people at the T-Mobile store I go to that’s right next to the AT&T store all think they will lose their jobs if the merger goes through. Why would they need two stores right next to each other?

  • dorsal_fin

    Let’s just not be naieve. The point is labor efficiency, period.