AT&T says proposed merger will benefit Iowa
Beth Canuteson has heard the questions and criticisms about AT&T Inc.’s proposed merger with T-Mobile USA Inc.
She’s confident, as is the company, that the merger would pay dividends in 4G LTE broadband coverage – the highest current standard of coverage. Canuteson, AT&T regional vice president for Iowa, said the merger will create expanded – and faster – coverage in Des Moines and statewide.
“Right now we have 3G (third generation) coverage in parts of Iowa, but we don’t have 4G (fourth generation) coverage yet. And we’re going to be expanding it,” Canuteson said. “The acquisition itself is going to enhance our coverage in urban areas, but it’s going to bring a level of speed to those rural areas they may not get otherwise.”
Currently, T-Mobile has 4G coverage in Des Moines and Ames, and nowhere else in the state. AT&T officials say that the two companies together would be greater than the sum of their parts in being able to implement 4G coverage because of the spectrum, or wireless capacity, that the two companies would have combined.
AT&T in March announced that it would buy T-Mobile for $39 billion to create what would be the largest wireless carrier in the country. The company has heard criticism that the deal will create a situation where two large companies – AT&T and Verizon Wireless – have too much power, which could lead to higher prices for customers.
She said company representatives have met with state representatives and policy-makers, and acknowledged that though there seems to be support, most people are cautiously waiting to see how the process plays out before fully supporting the move. The U.S. Department of Justice and Federal Communications Comission must approve the acquisition.
Regulators, she said, are looking at whether there will be adequate competition in the market if the merger goes through. Canuteson points out that not only is there a lot of competition in the state among providers, but there are different types of providers.
“This is not your dad’s telephone company,” Canuteson said. “Not only are we competing against each other, we are competing against Skype, the cable providers, the landline providers, all of those other different types of communication technologies that are out there. It’s a very different world.”
AT&T’s hopes in Iowa mirror what the company wants to do nationwide, as it has set a goal to reach 97.3 percent of the population with broadband coverage, up from the current 80 percent.