AT&T Merger With T-Mobile Will Cost 30,000+ Jobs New Report Says

[WenWM]

Recently AT&T said they would bring the American's 5,000 new jobs if the T-mobile deal goes through; however, Sprint funded a research study that proves otherwise. The report was done by a professor of Economics and director of the Center for Economics and Public Policy at the University of California-- David Neumark. He concluded his report by saying if AT&T is allowed to buy T-mobile, over 34,000 to 60,000 jobs might be lost in the transaction:

The EPI analysis claiming that the AT&T/T-Mobile merger will create jobs because of increased capital investment is completely unfounded. It is based solely on a claim by AT&T that it will increase its capital expenditures. But it appears to ignore reductions in capital expenditures that T-Mobile would have undertaken, and the strong likelihood that net capital expenditures would decline as a result of the merger. Indeed AT&T has told the federal government and its investors that the merger would lead to reduced capital expenditures. By EPI’s own logic, the net reduction in capital expenditures would lead to fewer jobs.

He also went on to bring up AT&T's past record in regards to mergers. In the report he said, AT&T has eliminated over 107,000 jobs relative to the growth in employment that would have occurred from the acquisitions that occurred during that time period. This evidence is consistent with AT&T’s past mergers generating job loss,”

This did not sit too well with AT&T, and they instantly fired back by saying:

Frankly this is a woefully flawed study with no factual underpinnings. For example, it ridiculously assumes T-Mobile will continue to spend and invest at the same levels it did before its parent company, Deutsche Telekom, cut off its funding. We have made firm commitments on jobs, including bringing back 5,000 jobs to the U.S. from overseas, and that wireless call center employees on the payroll at closing will not lose their jobs. This is in addition to the thousands of new jobs from our $8 billion investment to integrate the companies’ networks and expand new mobile broadband technology. That’s more than Sprint has ever done.

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Via: TechCrunch