Verizon CEO Lowell McAdam Supports AT&T’s Acquisition of T-Mobile
Verizon Communications (NYSE:VZ) CEO Lowell McAdam said that AT&T should be allowed to complete the acquisition of T-Mobile USA for $39 billion.
“That match had to occur,” said McAdam. He warned that the government has no choice but to allow mergers like this unless it can focus on getting telecommunication companies the spectrum they need to operate. “We need to be very thoughtful on what the impacts would be to the overall industry if this is a way to regulate the industry without actually passing regulation.”
“I have taken the position that the AT&T merger with T-Mobile was kind of like gravity,” said McAdam. “It had to occur, because you had a company with a T-Mobile that had the spectrum but didn’t have the capital to build it out. AT&T needed the spectrum, they didn’t have it in order to take care of their customers, and so that match had to occur.”
The Verizon CEO continued by saying that blocking AT&T’s acquisition would harm American consumers. The U.S. Justice Department filed a lawsuit against AT&T late last month to block the T-Mobile merger.