AT&T

Many years back, an American friend who was visiting London from New York remarked on the odd way in which people were walking around with blocks of plastic held to their ears. “Why don’t they just use normal phones?” she asked.

John Gapper

Sarah Gordon points out that Nokia and Sony have a set of problems that undermined their capacity for innovation. But they are far from alone in being victims of Apple’s success.

In fact, the list of Apple victims is long and stretches across the media and technology. Since Steve Jobs unveiled iTunes and the iPod in 2001, starting Apple’s decade long rise to  dominance in consumer technology and electronics, his company has left many of its competitors wounded. Read more >>

John Gapper

AT&T has spent the past few weeks denying that it was about to drop its bid for T-Mobile USA, despite the heavy regulatory opposition. It has now done precisely that.

I was originally against the deal, arguing in March that:

The US performs badly in fixed-line broadband services in terms of price and speed compared with other countries, hurt by Verizon and AT&T having shrugged off the imposition of competition. The last thing the US now needs is AT&T, which already has mobile operating margins of more than 40 per cent, pulling that trick again.

Come on, DoJ. Just say no.

The US Department of Justice subsequently came out against the deal, along with the Federal Communications Commission. AT&T has taken the medicine, paying the proposed deal’s $4bn break-up fee and going back to square one. Read more >>

John Gapper

The news that AT&T is taking a $4bn charge to cover the break-up fee it will owe to Deutsche Telekom if its takeover of T-Mobile fails is concrete evidence of how badly it has done in its campaign to convince regulators. To which I say, good.

I have been against the AT&T and T-Mobile deal from the start, arguing that it would enable AT&T and Verizon to replicate in mobile the duopoly that they and the cable companies enjoy in fixed line telephony and broadband. Read more >>

John Gapper

Twitter’s fifth birthday today comes as  AT&T’s announces it wants to buy T-Mobile USA for $39bn to form the largest US mobile provider.  The two events are more than a coincidence.

AT&T produced some slides for its announcement showing the rapid growth in mobile data use – 8,000 per cent over four years according to its calculations – and is justifying the acquisition partly by warning of spectrum exhaustion.

Twitter, meanwhile, is the first big social media company to be conceived with mobile in mind. It’s 140-character limit for messages was based on the original 160-character limit for phone text messages. Read more >>