AT&T CEO Whines About 700Mhz Open Access Rules

[CA]

CEO Randall Stephenson is whining about the "open access" rules the FCC put in place governing the coveted 700mhz spectrum that is to be auctioned off in the near future, hinting that AT&T might not take part because the rules make buying the spectrum unprofitable.

"Is there a business model there? I'm not sure if there is or not," he said during a Q&A at the Web 2.0 Summit. "It's a huge opportunity. It's beachfront property. When it comes to buying spectrum, it's the best you're going to find for a long time," Stephenson said.

AT&T just paid $2.5 billion for a company that owned a chunk of wireless spectrum. "It's the first time, I think, that we've ever paid $2.5 billion for a company that had no revenue," Stephenson said.

"It'll be interesting to see if somebody can go in and pay $4.5 billion for the spectrum, then build a network, then build OSS [operations support systems] and all the other systems," remarked Stephenson, "then turn that loose, can you make money at it? I don't know."

Web 2.0 Summit: AT&T's Stephenson Doesn't See Business Model For 70

http://consumerist.com/consumer/the-...les-313450.php

[RogerPodacter]

well why dont you cry about it, saddle bags!!!

[mdasen]

The issue is that the new spectrum is essentially looking to turn wireless companies into electric companies - sellers of bandwidth to others at wholesale prices. No longer will there be lucrative deals to be had with things like the iPhone or Sprint TV or whatnot.

It's lowering the profit margins and the wireless companies aren't going to like that.

[RogerPodacter]

i like to think it will force wireless companies to offer better features to compete and attract customers that way. Maybe that won't work though.

[Danny4G]

When the telcos are forced to squeeze profits down to nothing, I wonder if they'll have less incentive to build out/upgrade their networks the way they do today? (not that at&t has been all that aggressive building out their 3G network )

All CSR's will go offshore.

I really don't blame the wireless giants for trying to protect their profits and own interests despite the anger from the most hardcore users. These are huge organizations with huge debts to pay and huge payrolls to keep up.

One day though, they may succumb to market pressure and they'll most likely lose their respective market shares unless they can come up with a new must have service.

[zephxiii]

Suck it up, *****es. Thats what you get for your lame cripple firmwares with ringtones we hate and can't delete, among other hardware things.

[FL1134]

The issue is that the new spectrum is essentially looking to turn wireless companies into electric companies - sellers of bandwidth to others at wholesale prices. No longer will there be lucrative deals to be had with things like the iPhone or Sprint TV or whatnot.

It's lowering the profit margins and the wireless companies aren't going to like that.

You mean service providers will have to be service providers? It is bigger than profit margins, it is 100% about control. Control the network, control the hardware, control the customer. As wireless networks transition to all IP, telecoms don't want to become ISP's like they currently are for internet access. This is the reason they lobby against net neutrality; they want to control your internet connection and all data you access.

[CA]

Telco's are just doing what they do, it's their nature. Circle the wagons and shout whatever! At this point anyone thinking going along in their path is in your best interest is just a little naive.

It is also a tell, in poker it's time to raise! Google are you listening!

JMO

[walkguru]

come on google.