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The FCC, economy, and the public interest

Posted August 23rd, 2011 in economy and tagged , , by Alton Drew

CNET.com’s Roger Cheng obviously understands not only mobile technology, but the ripples that should be expected in a changing marketplace.

In his piece, Mr. Cheng cited a study by Deloitte which finds that 4G network deployment through the year 2016 could add from 371,000 to 771,000 jobs. Just as important would be an added $73 billion to $151 billion to the nation’s gross domestic product.

On the surface, investors should be pleased with that report. In addition, job creation, the number one issue among Americans, would get a needed boost.

Merger reviews can turn into barriers to market entry if they do not take into account pro-growth policy and outcomes, and investor interests. With AT&T planning to purchase T-Mobile from Deutsche Telekom, 9.1% national unemployment, and 16% unemployment among African Americans in particular, this analysis should be considered in the FCC’s public interest analysis.

Is poor economy justification for FCC, DOJ to deny AT&T/T-Mobile merger?

An article in The Wall Street Journal discussed how the stock value declines for second tier carriers like MetroPCS may have an impact on AT&T, given that a poor economy may lead to more concentration in the industry. The greater the concentration, the less likely AT&T’s proposal to merge with T-Mobile USA would pass muter.

Too easy to take for granted that even with the technology sectors good performance in the market, particularly through the downgrade of American debt crisis, that the economy will have an impact on the wireless industry. Should the FCC and DOJ get in the business of guaranteeing a wireless carrier survive even though its financial fundamentals say otherwise?

T-Mobile USA: European competition is the coffin. The American economy is the grave.

Sitting in the barbershop yesterday with my nine-year old son when I overheard one barber discussing MetroPCS with his customer. Hopefully the barber doesn’t own any shares of the Dallas-based company because yesterday’s market news may have caused the barber to inflict damage on his customer’s scalp.

MetroPCS, a carrier that has been serving the low income, pre-paid market, yesterday suffered a 37% decrease in the value of its shares as the company reports that the slow economy is severely impacting low income consumers. It appears that some of these consumers may be opting for government subsidized mobile phone service.

Leap Wireless International and Sprint Nextel are also experiencing decreases in share values for the same reasons.

The experiences of MetroPCS may serve as another proxy for why T-Mobile USA is ready to exit the U.S. market.

Tech as a viable future investment

Posted August 1st, 2011 in AT&T, economy, employment, entrepreneurship and tagged , , by Alton Drew

Ten billion dollars and 500,000 jobs. These are some of the eye-catching statistics from Latoya Livingston’s recent article about the promotion of entrepreneurship opportunities for people of color.

Ms. Livingston’s article places focus on a point too often overlooked during this debate over AT&T’s proposed merger with T-Mobile: the investment opportunities. While tech does rise and fall with consumer sentiment, in the immediate and long term, the market is showing continued demand for new and advanced products not only here in the U.S., but abroad.

There is an unmet global need that minority entrepreneurs can still take advantage of.

West Virginia short on broadband infrastructure

Posted April 29th, 2011 in Broadband, Internet, economy and tagged , , , by Alton Drew

I used to drive once a month from Frederick, Maryland to Dayton, Ohio to see my son. Two things I noticed about whenever I crossed into West Virginia: the speed limit and the quality of the roads. On I-70 the posted speed limit is 70 miles per hour. I could tell the truckers loved it, even though they were limited to 65 mph. I would say to myself, “This is a state that appreciates commerce.”

The quality of road, at least along that stretch, was pretty good, too. That further confirmed that West Virginia wanted traffic to come through its state.

Unfortunately, the state appears not to be taking that view toward broadband. According to CityNet, an Internet service provider in West Virginia, that a technology deficit is keeping West Virginia from reaping the rewards of job growth. CityNet’s chief executive officer, Jim Martin, told the state’s gubernatorial candidates that the state will never shed its 48th out of 50 state ranking on high-speed Internet access if it doesn’t address its middle mile issue.

Martin cited the Commonwealth of Virginia’s $50 million investment in broadband, middle mile infrastructure which, allegedly, has garnered the state $2 billion in economic development and a bunch of jobs.

Come on, Mountaineers. It’s time to invest in that other highway.