Thursday, March 31, 2011

AT&T (T) CEO Rejects Higher Price Theory in T-Mobile Deal

Assertions by AT&T Inc (NYSE:T) detractors coming as a result of the bid of the company for T-Mobile, saying it will result in higher prices, was argued against by AT&T CEO Randall Stephenson

Speaking at an event in New York sponsored by the Council on Foreign Relations, Stephenson cited a government report which stated prices over the last 10 years have dropped about 50 percent after the merger of five wireless companies during that time.

Another argument he used was concerning AT&T customers themselves, which had paid in the past about $1.90 a megabyte of wireless data, which has been whittled down to close to 16 cents at this time.

AT&T offered $39 billion to Deutsche Telekom AG's T-Mobile USA unit, which is the fourth-largest in the country, and is a low-price leader.

AT&T closed Wednesday at $30.71, gaining $0.66, or 2.20 percent.

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