T-Mobile To Make More Cuts

T-Mobile USA will eliminate an additional 900 jobs in a restructuring, on top of a 1,900-job reduction at its call centers that was announced in March, the carrier confirmed on Wednesday.

T-Mobile, now with about 36,000 employees, has faced more than two years of subscriber losses. Last year, the wireless carrier lost out on a $39 billion deal to be taken over by AT&T — federal regulators rejected the deal.

In its first quarter results announced May 9, T-Mobile said it lost 510,000 contract customers. It now serves 33.4 million customers.

Not having the iPhone 4S to sell, compared to the other three major U.S. carriers, also hurt T-Mobile and lead to more contract deactivations, the company said in its first-quarter results.

A T-Mobile spokeswoman said in an email that the elimination of 900 jobs was the result of a “restructuring of key functions and departments across the company, including the elimination of some positions and outsourcing of others.”

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Judge Oks Sprint’s Lawsuit Against AT&T

A judge in the U.S. on Wednesday gave the go ahead to parts of C Spire Wireless and Sprint Nextel’s lawsuits against AT&T’s proposed US$39 billion acquisition of T-Mobile USA.

AT&T and T-Mobile had moved for dismissal of the lawsuits arguing that the complaints by Sprint and C Spire, formerly Cellular South, failed to adequately substantiate that the merger would cause them “antitrust injury”.

The decision by District Judge Ellen Segal Huvelle of the United States District Court for the District of Columbia could complicate AT&T’s defense of the deal which has been already opposed by the U.S. government.

The U.S. Department of Justice filed a lawsuit in August to block AT&T from acquiring T-Mobile, saying that the deal would significantly reduce competition, increase prices and stifle innovation. Seven state attorneys general have joined the lawsuit. That case goes on trial in February before Judge Huvelle.

Where private plaintiffs have successfully pleaded antitrust injury, the fact that they are defendants’ competitors is no bar, Judge Huvelle said before allowing Sprint and C Spire to proceed with their claim that the merger would make it difficult for them to acquire wireless devices. The companies had claimed that after the merger AT&T and Verizon would be in a better position to get exclusive handset deals, while foreclosing their access to the most innovative handsets and raise their costs.

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NY To Investigate AT&T’s T-Mobile Acquisition

The state of New York  has indicated that it will investigate AT&T’s proposed take over of T-Mobile USA for anti-competitive effects, including possible increases in mobile broadband costs for New York residents and businesses, Attorney General Eric Schneiderman said.

New York is the first state that has committed itself to probing the $39 billion deal, which was announced on March 20 but is expected to take 12 months to close. At their current sizes, the combined telecom companies would have 130 million subscribers, dwarfing the next-biggest operator, Verizon Wireless, with 93 million. In a press release on Tuesday, the attorney general’s office raised the possibility of Verizon responding with an acquisition of Sprint Nextel, which has about 58 million subscribers.

“The proposed merger could start a process of consolidation that would lead to two firms -AT&T and Verizon – controlling nearly 80% of wireless subscribers nationwide,” Schneiderman stated.

Schneiderman said mobile service has changed from a luxury to a basic necessity and T-Mobile currently is a low-cost option for many New York residents. People in some areas, including Albany, Rochester, Buffalo and Syracuse, already have limited wireless choices, he said.

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