AT&T says this deal was no problem, but ponders whether Sprint-Clearwire is.

AT&T, the company that tried and failed to buy Deutsche Telekom’s T-Mobile USA, is sounding the alarm, urging regulators to carefully review any deal between Sprint, Softbank, and Clearwire.

“Softbank’s acquisition of Sprint and the control it gains over Clearwire will give one of Japan’s largest wireless companies control of significantly more U.S. wireless spectrum than any other company,” Brad Burns, an AT&T vice president said in a statement released late Wednesday. “We expect that fact and others will be fully explored in the regulatory review process. This is one more example of a very dynamic and competitive U.S. wireless marketplace, which is an important fact for U.S. regulators to recognize.”

AT&T claims its primary concern is the growing foreign control of America’s wireless carriers. That did not seem to bother AT&T from doing business with Germany-based Deutsche Telekom. Verizon Wireless has not been the recipient of any AT&T complaints either, and it is jointly owned by Verizon Communications and London-based Vodafone Group Plc.

Sprint bankrolled an opposition campaign against AT&T’s 2011 attempt to buy T-Mobile in a $39 billion dollar deal that failed after regulators objected to its impact on marketplace competition.

AT&T’s concerns about spectrum control may be an attempt to lobby the FCC for more leniency in approving future spectrum acquisitions. But industry analysts note that while a combined Sprint-Clearwire network may control more spectrum than others, much of it occupies less-favorable, very high frequencies that have trouble delivering robust service indoors. AT&T maintains a considerable amount of prime spectrum most sought by carriers, some of it yet to be used.

Sprint will have majority ownership in Clearwire, including its lucrative wireless spectrum.

Sprint-Nextel will gain majority control over its beleaguered wireless partner Clearwire with the $100 million acquisition of Craig McCaw’s stake in the wireless company he co-founded.

Sprint already controlled 48 percent of Clearwire, which provides many Sprint customers with 4G WiMAX service, but today’s purchase will give Sprint more control over Clearwire’s considerable wireless spectrum holdings.

Jeff Kagan, an independent telecommunications analyst this morning told Bloomberg News Sprint’s acquisition will make a Sprint-Clearwire combination more attractive to Softbank, which is buying a controlling interest in Sprint and wants firm ground in the U.S. market.

“It gives the combined company much more spectrum, much more ability to deliver services,” Kagan said.

But Sprint denied it was seeking a complete acquisition of Clearwire, which still has Intel and cable operator Comcast as part-owners.

Clearwire’s planned 4G TD-LTE network upgrade due to launch in 2013 is also a comfortable fit for Sprint’s new partner — Tokyo-based Softbank, which uses the same technology on its own 4G network in Japan. Softbank last week announced it would pay $20.1 billion for a controlling interest in Sprint-Nextel.

[flv]http://www.phillipdampier.com/video/CNBC Faber Report Sprint Gains Control of Clearwire 10-18-12.flv[/flv]

CNBC covers Sprint’s announced acquisition of a controlling interest in beleaguered Clearwire, and what impact the acquisition will likely have on Sprint shareholders. (3 minutes)

[flv]http://www.phillipdampier.com/video/CNBC Verizon Wants More Consolidation 10-18-12.flv[/flv]

Lowell McAdam, chairman & CEO of Verizon Communications, is back on CNBC in this exclusive interview calling for additional wireless industry consolidation. McAdam also discusses Verizon’s huge earnings after its wireless plan changes, Verizon’s latest union contract, and the current state of the U.S. economy. (8 minutes)

Plateau Wireless customers can expect to be eventually herded to Verizon Wireless’ all or nothing plans as early as 2013.

Verizon Wireless this week announced the acquisition of another regional wireless carrier — Plateau Wireless — formerly owned by the Eastern New Mexico Rural Telephone Cooperative. At risk are the co-op’s innovative and inexpensive calling and unlimited smartphone data plans for customers in communities like Roswell, Carlsbad, Artesia, and Hobbs.

Verizon’s purchase includes the co-op’s cellular, PCS, and AWS wireless spectrum that covers more than 26,000 square miles in eastern New Mexico.

“We are excited to expand our presence and coverage in rural New Mexico and to welcome Plateau Wireless’ customers to the nation’s most reliable network. We believe the strength of our network enables people to live better and stronger lives,” said Andres Irlando, president of Verizon Wireless’ southwest region.

Customers’ bank accounts may not have the strength to withstand the pricing and technology changes Verizon has in store as early as 2013. Plateau’s current GSM network will be dismantled as Verizon converts the network to CDMA for voice service and EV-DO (3G) and LTE (4G) for data services, leaving customers’ current smartphones and handsets useless. Verizon has not said whether it will provide free replacement equipment to Plateau customers at the time of the network conversion.

More importantly, Plateau Wireless’ current service plans, which include numerous options for customers on tight budgets — are destined for the scrap heap as the company unleashes its all-or-nothing contract service plans.

Plateau Wireless was a co-op owned regional wireless provider serving southeastern New Mexico.

The most important service at risk is Plateau’s unlimited data plan. The company charges customers $29.99 a month for unlimited smartphone data when inside Plateau’s home coverage area. Customers on family plans have an even better deal. They can extend unlimited data to every other phone on the account for a flat additional fee of $10/month. For just under $40 a month total, four family members each with their own smartphones or other wireless devices can have unlimited data when bundled with a calling plan starting at $19.99 a month ($9.99 for each additional line).

The same data plan under Verizon Wireless’ Share Everything Plan costs $220 a month for four phones, but it is not unlimited. All four users have to share a collective allowance of just 2GB of data per month.

Remember when your cell phone company offered you calling plans that fit your budget instead of their desired bottom line? Plateau Wireless still does, for the moment:

All Plateau Wireless Plans are eligible for the Family Plan and Data Features. Unlimited text messaging is $4.95 a month. Carryover of unused minutes to future months and free loyal customer minutes available. 

Plateau Wireless’ customers will have to decide for themselves whether Verizon’s acquisition is good or bad news for them.

Earlier this month, the Federal Communications Commission awarded nearly $9.5 million to Plateau to expand 3G and 4G service in central and southeastern New Mexico over the next three years. Verizon Wireless can use the funds to effectively expand their network in the area at taxpayer expense.

Phillip “I can see the duopoly from my house — why can’t the FCC?” Dampier

The New York Times is pondering whether Americans are paying too much for wireless broadband based on Long Term Evolution (LTE) technology. A new study now offers proof, noting U.S. customers pay three times as much, on average, for each gigabyte of data in contrast to European consumers.

The UK-based mobile industry group GSM Association offers evidence Americans are not getting the lower wireless broadband prices promised by the more advanced, cost-efficient LTE technology, although customers in other parts of the world are seeing savings.

According to the group’s findings, Verizon Wireless customers effectively pay $7.50 per gigabyte of data over the company’s 4G LTE network. That is three times more expensive than the European average of $2.50/GB, and more than 10 times higher than what Swedes pay: $0.63/GB, cheaper than many wired broadband providers’ overlimit fees.

Verizon Wireless’ Brenda Raney tried to defend the discrepancy, claiming that Verizon offers enhanced value bundles with unlimited voice, text, and mobile hotspot service. Having a data-only plan, Raney told the newspaper, would reduce the cost to $5.50/GB.

That is still more than twice as much as what Europeans pay.

So what is the real reason for the enormous price difference?

The wireless industry regularly claims that the vast expanse of the United States means a much larger investment in wireless technology and infrastructure, notably cell towers, to reach customers in suburban and rural areas. European countries, in contract, are much more compact and urban-focused, making infrastructure less costly.

But that has proven to be nonsense for Sweden’s Tele2, which not only operates a nationwide 4G cellular network in Sweden — a country with its own vast rural regions — but promises to deliver service to 99% of the country by the end of the year and already covers more than 100 Swedish municipalities. They deliver service at a fraction of the cost charged by Verizon. Tele2 remains undeterred by the “rural cost argument,” taking on the world’s largest country — the Russian Federation. It has already acquired 12 regional mobile operators in Russia, expanding service to more than 43 regions with over 22 million customers, and plans additional investments.

The real reason for the inflated price of service, unsurprisingly, is America’s lack of robust wireless competition, according to GSMA.

Europe has the largest number of competing providers — 38 of 88 operators with LTE technology are in Europe. Even the smallest countries have at least three major competitors. The U.S. has two major competitors, two smaller national carriers, and a dozen or more regional or prepaid operators totally dependent on the larger four to deliver national roaming service.

Until recently, Verizon Wireless had a veritable monopoly on LTE service as AT&T tries to catch up — one of the very rare moments Verizon directly challenged AT&T in advertising that distinguished the coverage differences between the two. These days, AT&T and Verizon mimic one another, often offering identically priced service plans. Customers who want to pay less have to reduce their expectations with smaller competitors that offer reduced coverage.

If you don’t want access to premium wireless broadband, American carriers will also gouge you for lesser 3G service.

U.S. consumers on two year contract plans spend an average of $115 a month for 3G service, according to a survey conducted by Ernst & Young. In the Netherlands, the average was $51; in Britain, $59 — about half the price.

The growing mobile phone bill has now reached the point where Ernst & Young’s Jonathan Dharmapalan suggests it is literally interfering with smartphone adoption and causing others to shut off the devices permanently after an experience with bill shock.

“The No. 1 reason for customers’ discontinuing their use of a smartphone service or not taking the option is the fear of overspending,” Dharmapalan said.

A former FCC senior Internet technology adviser attempted to explain away the vast discrepancies in pricing, offering this bit of analysis: Europeans talk and surf  less.