AT&T T-Mobile Merger: Wireless Carrier Pledges To Bring 5,000 Call Centre Jobs Back To U.S.

Posted: Updated:
ATT MERGER
AT&T Inc. is pledging to bring 5,000 wireless call centre jobs, currently based abroad, back to the U.S. if it is allowed to proceed with its proposed $39 billion acquisition of T-Mobile USA. | AOL

WASHINGTON - AT&T Inc. is pledging to bring 5,000 wireless call centre jobs, currently based abroad, back to the U.S. if it is allowed to proceed with its proposed $39 billion acquisition of T-Mobile USA.

The company is also promising that the merger would not result in any job losses for AT&T and T-Mobile USA wireless call centre employees who are on the payroll in the U.S. when the deal closes.

AT&T's commitment to repatriate jobs comes as antitrust regulators at the Federal Communications Commission and the Justice Department ramp up their reviews of a combination that is certain to reshape the wireless industry's landscape.

AT&T, the nation's second-largest wireless carrier, is seeking government approval to buy T-Mobile USA, the fourth-largest, from Germany's Deutsche Telekom AG. The cash-and-stock transaction would catapult AT&T past Verizon Wireless to become the nation's largest wireless provider, and leave Sprint Nextel Corp. as a distant number three.

Although AT&T said it has not yet determined where the new U.S.-based jobs would be located, it promised they would offer "highly competitive wages and benefits." The company hopes this message will carry weight in Washington, where job creation is a top priority for the Obama administration as the nation faces the possibility of a recession heading into the 2012 election.

"At a time when many Americans are struggling and our economy faces significant challenges, we're pleased that the T-Mobile merger allows us to bring 5,000 jobs back to the United States and significantly increase our investment here," AT&T Chairman and Chief Executive Randall Stephenson said in a statement.

Beyond the call centre operations, AT&T has said it does anticipate some workforce duplication after the deal closes, but expects to make reductions largely through natural attrition.

Opponents of the proposed merger, including public interest groups and Sprint, insist it will lead to fewer choices and higher prices for consumers by eliminating a carrier that offers lower rates and less expensive plans than competitors. They also fear the deal could jeopardize Sprint's future as an independent company and ultimately lead to a wireless industry duopoly.

AT&T and T-Mobile argue that the acquisition would benefit consumers. They say it would lead to fewer dropped and blocked calls and faster mobile Internet connections for subscribers by allowing the companies to combine their limited wireless spectrum holdings at a time when both are running out of airwaves to handle mobile apps, online video and other bandwidth-hungry services.

They also say the transaction would position AT&T to cover more than 97 per cent of the U.S. population with its new high-speed, fourth-generation wireless service.

Finding more airwaves to keep up with the explosive growth of wireless broadband services and ensuring that all Americans have access to high-speed Internet connections are both top priorities of the FCC and the Obama administration.

Around the Web

AT&T Plans to Bring Back Jobs Sent Abroad

AT&T Brings Home 5000 Jobs; Subprimes Get AAA Rating: Video

AT&T's new app disables texting while driving

AT&T to hire 200 workers in Central Fla.

T-Mobile, Verizon invest $100M more in mobile wallet venture

T-Mobile Responds To Reuters Story Regarding Call Center Job Cuts

WSJ: FCC Now Has Enough Info To Continue AT&T/T-Mobile Deal Review