Review About Big Companies Back Up AT&T’s T-Mobile Buy. In reaction towars AT&T recent proposal in $39 billion acquisition of T-Mobile, big companies have come forward to support with reason that it could help meet rising demand for wireless broadband. The big companies include Facebook, Microsoft, Oracle and Yahoo!There also other four signatories to the letter to the FCC in support of the proposed takeover of T-Mobile, the US unit of Germany’s Deutsche Telekom, by AT&T, they were Avaya, Brocade, Qualcomm and Blackberry maker Research In Motion.

The companies had written a letter to Federal Communications Commision chairman Julius Genachowski, saying that “Today, consumers are increasingly using smartphones, tablets, laptops and other mobile devices to wirelessly connect to the Internet and to each other. As a result, consumer demand for wireless broadband is dramatically increasing and our wireless networks are struggling to keep pace with the demand. AT&T’s acquisition of T-Mobile represents a near term means of addressing the risingconsumer demand . For example, the merged company will be able to leverage a larger network of cell sites allowing greater reuse of spectrum and increasing the wireless broadband capacity of the network.”

“The FCC must seriously weigh the benefits of this merger and approve it,” the companies said. “Such action will help to meet the near term wirelessbroadband needs of consumers and ensure that we are globally competitive as the world increasingly embraces wireless broadband connectivity.”

Despite many big companies are all in for the deal, however, rival Sprint Nextel has come out strongly against it saying that itwould give AT&T around 40 percent of the market and make it the top US wireless carrier. Verizon is currently number one, followed by AT&T, Sprint Nextel and T-Mobile. “AT&T’s acquisition of T-Mobile will turn back the clock on wireless competition. The wireless industry thrives on competition and an AT&T acquisition of T-Mobile would mean that two companies would largely control industry pricing,” Sprint chief executive Daniel Hesse told a Senate hearing last month looking into the deal.

Beside that, other opponents include the Computer & Communications Industry Association, which filed a petition with the FCC last month asking it to deny AT&T’s bid.

“AT&T has blocked numerous innovations that have competed with its business model in the past from fax machines to cell phones,” CCIA president and chief executive Ed Black said. “This brazen merger proposal makes it clear they are once again seeking market power which will allow them to hold back innovation and maximize profits.”

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