In a surprise finding by the Communications Workers of America (CWA), a major telecommunications union, the merger between AT&T (NYSE:T) and T-Mobile USA would create more than 100,000 jobs in the U.S. [1] The report lashed out at the opponents of the deal, specifically Sprint (NYSE:S), noting that their concerns over lost jobs stemmed from “sloppy research and the inability to distinguish between the change in the number of wireline and wireless jobs.”
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CWA report to support AT&T’s cause
The popular perception was that the AT&T/T-Mobile merger would lead to job cuts, which was the primary reason why FCC has taken so long to make a decision on this deal. It was also the primary reason why Department of Justice filed an antitrust lawsuit in August this year to block this deal (see Government Delivers Blow to AT&T and T-Mobile Deal). AT&T has claimed that the merger will bring back thousands of jobs and spur billions of dollars in additional investment. [2] Hence this report from CWA will lend support to AT&T’s argument of acquiring T-Mobile.
Early this week, in a filing with the U.S. Securities and Exchange Commission, AT&T (NYSE:T) said that it now expects its proposed $39 billion acquisition of T-Mobile and a block of Qualcomm (NASDAQ:QCOM) spectrum to close by the end of the first half of next year, a few months later than it originally planned. [3]
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Notes:- AT&T’s planned T-Mobile merger will create 96,000 jobs, CWA says, BGR, November 9th, 2011 [↩]
- AT&T responds to FCC, says merger will ‘create thousands of jobs’, BGR, October 14th, 2011 [↩]
- AT&T Sees Later Closing for T-Mobile Deal, Wall Street Journal, November 4th, 2011 [↩]
