“This capacity and the scale that it brings will allow us to build these fourth-generation networks that we’re talking about to 97 percent of the United States population,’’ he said. “That’s about 55 million more people than we’re presently able to do.’’
The deal to buy T-Mobile, the nation’s fourth-largest cellphone provider, was announced in March. If approved by federal regulators, it would make AT&T the nation’s biggest cellular carrier, with about 130 million subscribers.
The merger has won support from the governors of several states, who think the deal will boost their economies, and major labor unions such as the Communications Workers of America and the International Brotherhood of Teamsters. The company is largely unionized, but T-Mobile is not; an AT&T acquisition could bring thousands of new members to union rolls.
Rival cellular company Sprint Nextel Corp. is urging federal regulators to block the merger. So are the media watchdog groups Free Press and Consumers Union, publisher of Consumer Reports magazine, which say the merger would reduce competition in the cellular industry and lead to higher prices for consumers.
Stephenson said yesterday that AT&T needs T-Mobile’s hundreds of cell towers and its licensed radio frequencies to keep up with exploding demand for wireless data services. He said that without more capacity, “You move pricing up or you sacrifice service. That’s not the way we want to go.’’ Stephenson added that he expected federal regulators to order some modifications to the terms of the deal, perhaps including a requirement that AT&T sell off some T-Mobile properties to rival carriers. But he said the deal was still set to close within a year.
By that time, AT&T customers in Boston will be getting the company’s new LTE service. AT&T rivals Verizon Wireless and MetroPCS Wireless Inc. already offer LTE in Boston and many other US cities, delivering data much faster than AT&T’s current wireless data network.
Hiawatha Bray can be reached at bray@globe.com.
