Desperate, AT&T claims it will bring 5,000 jobs to the U.S. if T-Mobile merger approved

August 31, 2011 By Jeffrey Van Camp

AT&T is trying to build support for its proposed merger with T-Mobile, but the plan isn't going well. Now the carrier claims it will bring 5,000 jobs--presumably call center positions--back to the U.S. if the deal goes through.

AT&T desperately wants this T-Mobile merger to go through. Yesterday, the wireless carrier said it would bring 5,000 jobs it outsourced back to the U.S. if regulators let its $39 billion deal go through. Most of these jobs are low-paying wireless call center positions. The company also promised not to cut any more wireless call center positions, but only if the deal goes through.

Assuming a call center employee makes about $15 an hour and works a full 40-hour week, we’re looking at about $30,000 per employee, which means about $150 million in cost to hire 5,000 call center employees in the U.S. Keep in mind that AT&T is already paying something for those employees overseas, so the actual cost is lower. In any case, $150 million is nothing compared to the $3-6 billion AT&T will have to pay out to T-Mobile if the merger isn’t approved, reports the WSJ.

While 5,000 jobs coming to the United States is definitely a good thing, it’s small change compared to the potential impacts of the AT&T-Mobile merger, in the long run. Less competition in the wireless space can only mean slowed innovation and higher prices.

AT&T has been pulling out all the stops for this merger. In the last few months, it has begun choking users of unlimited data plans and suing a group of its own customers, all in the name of buying T-Mobile.

Almost every announcement AT&T has made in the last few months seems to involve needless choking of data or price hikes. Does the carrier wants to scare us? Is that why it recently doubled the minimum price of a texting plan? Publicly, it blames issues on the “spectrum crunch.” Even the tone of its press releases seems to indicate that if we don’t let it buy T-Mobile, bad things will happen. A recently released document shows that AT&T will refuse to build out its LTE network into many rural areas unless the T-Mobile deal goes through.

What do you think of AT&T’s plan to bring 5,000 jobs back to the U.S.? Does it help justify the merger?

Showing 15 comments

Anton Thompson at 10:59pm 31st August 2011 #BLACKMAIL and they mean back to the U.S.
Chad Feanny at 8:29pm 31st August 2011 All of 5k against the millions in america? In exhange for a monopoly over cell service for the vast majority of the U.S. Sounds like a great idea -_-
Damon Schmitt at 8:11pm 31st August 2011 Lemme see, $37bil / 5000..... Oh yes, I see that math makes perfect sense.
Mrnmrs Hated Newsome at 8:03pm 31st August 2011 This merger is a joke if it goes thru it is a travesty . No if anything everyone should say duck at&t and stop paying their cell bill for one month and remind them why they have a damn company in the first place. Here's to you at&t .... FUCK YOU!
Kurt Wilhelmsen at 7:42pm 31st August 2011 What about the higher value 5,000 engineering and sales jobs they'll cut from T-Mobile.....
Somphou Keomisy at 7:02pm 31st August 2011 does not make sense...most identical business that merge cut positions within its core operations as they overlapped each others...so to add 5,000 jobs???...please help me understand..maybe they meant low paying jobs?...yoohoo...i am so thrilled!!
Aerobat at 11:43am 31st August 2011 I agree with Ronald.This is a new approach of "Blackmailing" their customers and the government saying: "If you let us merge we will improve our customer service to acceptable levels. If you don't, we will charge you more and your service will get worse." Is this actually how the "Free Market" is suposed to work.Of course, their promise of hiring 5,000 new workers probably only amounts to 5,000 high school kids twirling signs on street corners for 2 weeks after the merger ... so don't count on that turning around the jobless numbers.What ever happened to: "The customer is always right" or "The customer is King."If you are still with AT&T, you are actually Paying for this abuse. As soon as your contract runs out you should vote with your patronage.
John Ryan Chaffin at 5:47pm 31st August 2011 5,000 whole jobs, huh? Wow...
Ronald Felder at 10:43am 31st August 2011 Sounds like they are black mailing the U.S. governemtn to me. Now perhaps i'll no longer have to put up witht hat annoying commercial AT&T keeps playing telling me how good gthe merger will be for everyone.Can't wait for them to have to pay that penalty to T-Mobile for the merger not going through,
Justin Russell at 5:31pm 31st August 2011 lol
Lee Maxwell at 5:30pm 31st August 2011 ...but if you give the magic beans back or don't like the way they grow you will be subject to a $350 restocking fee.
Matty Thornley at 10:30am 31st August 2011 Not at all.
Lee Maxwell at 5:30pm 31st August 2011 And and and EVERY customer will get a pouch full of magic beans!!
Chris Johnson at 5:29pm 31st August 2011 Says the company who axed 6,000 people last spring, and from 2006 to 2010, cut over 37,000 jobs, most from Menlo Park, CA.Wow, so in five years you've cut 42,000 jobs but you promise to bring 5,000 back?Way to flip your Ace in the Hole, AT&T.
James DeLayo at 5:28pm 31st August 2011 And slash 10,000 more.