AT&T Inc is pledging to bring 5,000 wireless call center jobs, now based abroad, back to the US if it is allowed to proceed with its proposed US$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 center employees who are on the payroll in the US when the deal closes.
AT&T’s commitment to repatriate jobs comes as antitrust regulators at the Federal Communications Commission and the US Department of Justice ramp up their reviews of a combination that is certain to reshape the wireless industry’s landscape.
AT&T, the second-largest wireless carrier in the US, 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 largest US wireless provider and leave Sprint Nextel Corp as a distant No. 3.
Although AT&T said it has not yet determined where the new US-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 administration of US President Barack Obama as the nation faces the possibility of a recession heading into next year’s election.
Beyond the call center 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, say it would 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.
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