PLATTSBURGH — The proposed merger of AT&T and T-Mobile could lead to increased availability of wireless broadband in parts of the North Country.
AT&T President of New York External Affairs Hal Lenox Jr. said the company plans to invest $8 billion in infrastructure if the merger is approved.
That includes nearly twice as much coverage as it planned for New York state before the merger plan.
TOP SPEED
AT&T proposed in March to acquire the U.S. assets of Deutsche Telekom AG, which does business in the United States as T-Mobile. Efficiencies achieved in the merger would allow AT&T to make the increased infrastructure investments.
Lenox said AT&T would be able to make its next-generation 4G Long-term Evolution service available to more than 97 percent of the U.S. population, more than 300 million people. That service will provide data transmission speeds faster than most DSL or cable modems and faster than satellite.
"It will give people access to another real, legitimate broadband provider," Lenox said.
SMART-PHONE GROWTH
The proposal comes as more and more people use hand-held devices, such as smart phones, to download data rather than home computers, a figure that Lenox said recently passed 50 percent.
The new generation of smart phones use enormous amounts of band width because there is a continuous flow of data, used for streaming video and other functions.
Lenox said that since the launch of the iPhone in 2007, the volume of data sent across AT&T's network increased 8,000 percent, up from 5,000 percent just last year. He said the company's engineers expect it to increase another eight to 10 times in the next five years.
SPECTRUM LIMITS
The spectrum of radio-wave frequencies suitable for mobile-phone applications is a finite resource, Lenox said.
"We are running out of spectrum."
Three main users exist: mobile-phone companies, the government and broadcasters.
The Federal Communications Commission is trying to free spectrum from government agencies, but that has yet to be approved by Congress. The FCC also has asked broadcasters to auction some of their bandwidth, but that move has been met with opposition.
"We think to free up (spectrum) will take six to 10 years," Lenox said.
He said AT&T can increase its share of spectrum through efficiencies it will achieve through the merger. The networks used by AT&T and T-Mobile use similar technology, which decreases the time needed to merge the networks.
COMMENTS SOUGHT
The merger requires approval from the FCC and the U.S. Department of Justice. The Department of Justice is focused on issues such as market concentration, Lenox said, while the FCC is concerned whether the deal is in the public's best interests.
The FCC allows comments to be placed on file. New York State Attorney General Eric Schneiderman and the New York Public Service Commission have filed comments.
Lenox said he expects a decision sometime next spring, but the proposal is receiving a lot of scrutiny from the two agencies.
He said critics say the merger would leave only a few players in the national market: AT&T/T-Mobile, Verizon and Sprint/Clearwire.
Those critics say that with fewer companies, rates will increase.
COMPETITIVE
Several local wireless companies have strong presence in certain markets, such as MetroPCS, Leap Wireless, Lightsquared, US Cellular and Cellular South, Lenox said.
"So, it is a very competitive marketplace," he said.
Creation of a more efficient network in a very competitive industry should lead to lower prices, not higher ones. AT&T would likely lose customers to the other companies if it raised rates, Lenox said.
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