One document from AT&T to the FCC has been leaked and it shows that AT&T is trying to show the FCC how it could justify the cost of more 4G LTE networks if it were merged with T-Mobile. The overall cost, according to the leaked document is almost $4 billion. Being able to justify the cost of the network means that AT&T would roll it out and the 4G network would be available for “97 percent of the population instead of the 80 percent” that get the 4G LTE now.
There is so much going into the possible merger with T-Mobile and there is support for others, but this document shows how AT&T is trying itself to convince the FCC the merger would be a good move. More or less, the document, leaked to Gizmodo.com, shows that AT&T will not be able to build onto the 4G LTE network unless the merger is approved. If AT&T can merge with T-Mobile, the company says that they will be able to offer supercharged HSPA+ 3G service to over 97 percent of the US population. AT&T said getting the additional 17 percent of coverage was going to cost the company $3.8 billion and that was deemed too expensive.
AT&T still has plans to move their LTE network to as many as 250 million people by the end of 2013, but the company would rather merge with T-Mobile and reach the 97 percent goal by 2018 at the earliest time. Part of the reason AT&T could not justify the cost to move the LTE network out to more people was that the return on investment in the rural areas would be too small and not worth the money. The document goes on to say that if the merger was approved they could roll out to the rest of the United States, but no specific details were given as to how the merger would make it a cheaper venture.
AT&T might be trying to become the first national-wide 4G LTE provider with the merger, but as they sit and wait for approval from the FCC and Department of Justice, Verizon Wireless already has their 4G LTE online and the network growth is rapid. Getting mobile broadband to rural areas is expensive and because of that all subscribers are going to see the company try and absorb the cost in plan prices.
