California Regulators Say T-Mobile Lied To Gain Sprint Merger Approval

from the synergies dept

To gain regulatory approval for its $26 billion merger with Sprint, T-Mobile made numerous promises. One was that the deal would immediately create jobs (there've been 5,000 layoffs so far). Another was that the company would work closely with Dish Network to help them build a fourth wireless network that would replace Sprint, theoretically "fixing" the reduction in competition the deal created. As predicted, that plan isn't working out well either.

Dish and T-Mobile have been fighting like cats and dogs since the deal was finalized. Instead of helping Dish Network grow, T-Mobile has been poaching Dish customers with promotions specifically targeting Dish. T-Mobile also promised to keep its older 3G, CDMA network operational for Dish to use until 2023 (giving it time to build out its own 5G network), but Dish has been accusing T-Mobile of turning that network off on January 1, 2022, far earlier than originally promised. Dish argues that millions of its Boost Mobile branded wireless subscribers could lose access to service in the new year.

This week California regulators sided with Dish and effectively accused T-Mobile of lying to gain merger approval:

"T-Mobile's false and misleading statements under oath indicated, among other things, that T-Mobile would make its CDMA network "available to Boost customers until they were migrated to Dish Network Corporation's LTE or 5G services" and that Dish would have up to three years to complete the migration, the ruling said. The CPUC can impose penalties against T-Mobile of up to $100,000 for each offense."

In short Dish says T-Mobile simply isn't living up to its merger commitments. In turn, a T-Mobile blog post effectively accuses Dish is just making everything up, and insists Dish is simply too cheap to give its wireless users discounted 4G and 5G phones to avoid problems when T-Mobile's 3G network shuts down. California regulators, including Administrative Law Judge Karl Bemesderfer and a CPUC commissioner, appear inclined to believe Dish Network based on their review of T-Mobile's pre-merger promises:

"Their ruling said there is "a reasonable basis to conclude that T-Mobile... misrepresented material facts and misled the commission" with statements under oath. The ruling said that when the CPUC allowed the merger, it "relied on the specific false statements, omissions, and/or misleading assurances T-Mobile gave regarding its use of [Sprint's] PCS spectrum and its repeated references to a three-year customer migration period without a degraded experience... it appears that these false statements, omissions and/or misleading assurances and the related time references were intended to induce the commission to approve the merger."

Again, simply blocking this deal and finding some other way to prop up Sprint (without eliminating a direct competitor) was always the simpler, cleaner, option. Instead, the Trump DOJ and FCC constructed this elaborate and likely doomed alternative which (ironically for a party with a purportedly "hands off" and "government never works" mindset), involves having government try to nanny a cumbersome arrangement to fruition for the better part of a decade. With Dish consistently losing both wireless and TV subscribers, it's not clear Dish will even remain viable enough for that to work.

Dish is a company with no experience in wireless, with a history of being cheap and difficult to work with, that has to not only build out a world class 5G network in a few years, but has to make a network so popular with consumers it successfully leeches subscribers from AT&T, Verizon, and T-Mobile. And it has to do it without financially imploding as it continues to hemorrhage wireless and TV subscribers. And US regulators, not exactly the model of consistent oversight, would need to hold all companies involved meaningfully accountable should they miss build-out metrics.

I still tend to think the entire deal was performative theater providing flimsy justification to approval a deal experts made very clear would reduce competition, raise prices, and harm jobs. It was pushed by folks whose only real interest was reducing competition so the remaining three players could inevitably jack up prices. And while I do think Dish is making a good show of it (because they have to), I still tend to think this could end with Dish selling its trove of valuable spectrum (once deal restrictions end), making tens of billions, then throwing a few peanuts at any flimsy regulatory penalties on their way to the exit.

Filed Under: antitrust, california, competition, doj, fcc, jobs, layoffs, lies, review
Companies: dish, sprint, t-mobile

AT&T & Verizon Got Billions From Government, Yet Laid Off 95,000 People In Just Five Years

from the do-not-pass-go,-do-not-collect-$200 dept

You'd be hard pressed to find a sector that has benefited more from the Trump era than telecom. In the last four years, telecom monopolies not only received billions in tax cuts (AT&T nabbed an estimated $42 billion in tax breaks alone), they convinced the Trump administration to effectively neuter the FCC's consumer protection authority, a move arguably worth countless billions more. In both instances these perks were doled out under the auspices that this would drive hiring and network investment. In reality, not only did that not happen, but the opposite happened.

Reports this week indicate that AT&T and Verizon alone have laid of 95,000 employees in just the last five years alone:

"After AT&T slashed headcount by more than 13,000 in the first nine months of 2020, the final tally was always going to be ugly. Results published this week show another 3,870 jobs disappeared in the fourth quarter. More than 50,000 have gone in just five years – about 18% of AT&T's headcount at the end of 2015.

Verizon has pruned with similar zeal. Only 1,000 jobs were cut from the total in the final three months of 2020, and just 2,800 over the entire year. But 45,500 have vanished since 2015, an alarming 26% of that year's count. The combined losses are roughly equal to the entire workforce at Vodafone, a UK-based operator with international operations.

Some losses were expected for these companies as the pivoted from aging landlines to wireless. At the same time, both companies promised that deregulation and tax breaks would immediately translate into thousands of new, high paying jobs, a promise that, by any metric, never materialized. Not only did both companies fire employees by the tens of thousands, giants like AT&T and Comcast reduced overall network investment. Killing net neutrality and the FCC's authority was supposed to create a boom in network investment. And despite former FCC boss Ajit Pai repeatedly pretending that was true, it simply wasn't.

AT&T's layoffs were driven largely by the company's insatiable appetite for mergers that don't make much sense. Said appetites saddled the company with an absolute mountain of debt. That debt was then paid for by the company's employees and customers. Meanwhile, executives like Randall Stephenson, responsible for bungling said mergers and related finances, are now happily retired and napping on giant beds of money.

Every, single time a US telecom monopoly wants something (merger approval, deregulation, subsidies, tax breaks) it promises the Earth, sea and sky. And every, single time, the company fails to deliver and nobody on any level is held accountable. Ever. Nobody, in either party of the U.S. government, has taken any serious steps to thwart this idiotic gravy train (especially those myopically and often performatively focused on "big tech"). Meanwhile, about 90% of the coverage from "he said, she said" media outlets excludes this grift rodeo as essential context.

AT&T receiving countless billions in tax cuts, subsidies, and regulatory FCC favors in exchange for absolutely nothing is the story. Yet any time AT&T's business model is covered, that's simply not mentioned at all by most large outlets. AT&T, tied to the NSA and therefore immune from government accountability, knows it doesn't even have to scrub its website of empty promises because executives know nobody, anywhere, is going to do anything about it.

Filed Under: layoffs, subsidies, tax cuts
Companies: at&t, verizon

'Activist' Investor Elliott Management Sells Stake In AT&T After Encouraging Mass Firings

from the employees-pick-up-the-tab dept

In AT&T executives' heads, the 2015, $67 billion acquisition of DirecTV and the 2018 $86 billion acquisition of Time Warner were supposed to be the cornerstones of the company's efforts to dominate video and online video advertising. Instead, the megadeals made AT&T possibly one of the most heavily indebted companies in the world. To recoup that debt, AT&T quickly ramped up its efforts to nickel-and-dime users at every opportunity, from bogus new wireless fees to price hikes on both its streaming and traditional video services.

This, in turn, wound up driving a customer exodus. In fact, AT&T has lost more than 8 million TV subscribers in just the last three years alone. Not exactly the kind of sector domination the company had in mind.

Last year, "activist" investors at Elliott Management began making a stink about AT&T's obsession with mindless merger mania. Not that it hurt consumers or misdirected funds away from network investment, mind you, just that the debt was dragging down the firm's $3.2 billion investment in AT&T stock. In response, AT&T forced its CEO to "retire," and the company, at Elliott's behest, greatly accelerated mass employee firings and customer service offshoring. AT&T's since fired more than 42,000 employees in just the last few years, despite a $42 billion Trump tax break AT&T promised would result in "thousands of new, high paying jobs," and billions more in regulator favors ranging from the death of broadband privacy rules to the dismantling of net neutrality.

Now it appears the moves were enough to give Elliott what it wanted. After raising a massive stink throughout much of 2019, the company this week quietly offloaded its entire stake in AT&T:

"The New York-based hedge fund liquidated its investment when it sold 5 million shares during the quarter that ended Sept. 30. It had first bought into the stock during the third quarter 2019, according to another filing."

Elliott wasn't entirely wrong. AT&T did fixate so much on merger mania it lost the forest for the trees and neglected its core focus: building and running networks. It also bungled its entry into the video streaming space with a befuddling array of different branding that confused even AT&T employees. It spent $150 billion to dominate a sector it's now barely making a dent in. Were I an investor, employee, or customer, I'd probably be pissed too.

The problem, of course, is that, as usual, it's the employees and consumers who actually pay the price for managerial incompetence. AT&T has a long history of cutting corners when it comes to network investment, then holding regulators and lawmakers hostage with empty promises that "X" (deregulation, merger approval, subsidies, tax breaks) will finally get AT&T to meaningfully invest into its own network. But these serious fiber upgrades never really happen because entrenched telecom monopolies, protected from accountability via regulatory capture, no competition, and their cozy relationships with U.S. intelligence, are, in effect, a perpetual, taxpayer subsidized con.

A con where, time and time and time again, executives and investors wind up somewhere sipping mojitos on a yacht, while customers and employees pick up the tab.

Filed Under: activist investor, investor, layoffs, tax breaks
Companies: at&t, elliott management

With 42,000 Layoffs Since 2017, AT&T Plans Thousands More Layoffs At HBO, Time Warner

from the highly-innovative dept

Since 2017, AT&T has received not only a $42 billion tax break courtesy of the Trump administration, but billions more in regulatory favors from the Trump FCC, including the repeal of net neutrality, the erosion of much of the FCC's authority to police natural telecom monopolies, and the elimination of broadband-specific privacy rules. In exchange, AT&T promised thousands of "high paying jobs" and a massive spike in investment. Instead, AT&T fired more than 42,000 employees and trimmed its overall 2020 investment. It's nice work if you can get it.

And AT&T's not done yet. AT&T spent roughly $175 billion DirecTV and Time Warner mergers thinking it could buy its way to streaming video domination. But that's not working out so hot, and AT&T's now doing everything in power to trim its balance sheet. That includes plans to sell DirecTV for a huge loss, and thousands more layoffs across Time Warner, HBO, and other recently acquired properties:

"AT&T's WarnerMedia is restructuring its workforce as it seeks to reduce costs by as much as 20 percent as the coronavirus pandemic drains income from movie tickets, cable subscriptions and television ads, according to people familiar with the matter. The overhaul, which is expected to begin in the coming weeks, would result in thousands of layoffs across Warner Bros. studios and TV channels like HBO, TBS and TNT, the people said.

COVID will provide cover for AT&T, but these layoffs had already been in the works after investor backlash at AT&T's merger mania. COVID will also create cover for the fact that this is all stuff that opponents of the AT&T Time Warner merger repeatedly warned would happen before being promptly ignored by regulators at the FCC and elsewhere. These mindless megadeals always come bearing ample promises about next-level innovation, right before delivering layoffs and higher prices for consumers and competitors alike.

The company's promise that the deal wouldn't result in price hikes for consumers? False. The company's promise the deal wouldn't result in higher prices for competitors needing access to essential AT&T content like HBO? False. AT&T's promise they wouldn't hide Time Warner content behind exclusivity paywalls? False. The idea that the merger would somehow create more jobs at the company? False. Falsehoods that were all taxpayer subsidized and rubber-stamped thanks to regulatory capture.

This being America, you can expect nobody, on absolutely any level of punditry, press, or government, to learn absolutely anything from this experience.

Filed Under: fcc, jobs, layoffs, mergers, subsidies, tax break
Companies: at&t

AT&T Fires Hundreds Of DC, HBO Execs In Latest Example Of 'Merger Synergies'

from the Do-not-pass-go,-do-not-collect-$200 dept

This may be shocking to hear, but nearly all of the promises AT&T made in the lead up to its $86 billion merger with Time Warner wound up not being true.

The company's promise that the deal wouldn't result in price hikes for consumers? False. The company's promise the deal wouldn't result in higher prices for competitors needing access to essential AT&T content like HBO? False. AT&T's promise they wouldn't hide Time Warner content behind exclusivity paywalls? False. The "$15 TV service" the company repeatedly hyped as a byproduct of the deal? Already discontinued. The idea that the merger would somehow create more jobs at the company? False.

AT&T has laid off 41,000 employees just since it received its 2017, $42 billion tax cut from the Trump administration for doing absolutely nothing (technically, less than nothing, since it fired countless employees and trimmed 2020 CAPEX by around $3 billion). And this week, the company laid off another 600 employees across Time Warner, including employees at HBO and DC Comics:

"The moves are likely to cause anxiety at WarnerMedia, which has reorganized several areas of its business since being acquired by AT&T for about $85 billion in 2018. Since AT&T took over the company formerly known as Time Warner, top executives with years of oversight of distribution, programming and advertising sales have departed. Kilar’s ascension to the CEO role in May has only served to fuel more recalibration."

Granted if you've watched the history of U.S. media and telecom consolidation, this should surprise nobody. The first year or two after such deals are usually filled with empty promises about how "nothing will change" (AT&T brass repeatedly promised Time Warner employees they would have ample resources and creative freedom), only to be followed up by everything changing, and, as is the case when a lumbering telecom monopoly jumps more fully into a creative business it doesn't fully understand, often not for the better.

And while AT&T has hinted that much of this had to do with COVID-19, that's not the case. Most of these moves were either planned for some time, or part of the company's ongoing attempts to shed the massive debt accumulated from the company's spending spree on DirecTV (2015) and Time Warner (2018). Both mergers were supposed to position AT&T as a dominant player in the online video and advertising space. Instead, AT&T has been losing paying TV customers hand over fist after a number of bungled decisions ranging from price hikes on price sensitive cord cutters to bungled streaming branding.

It was yet another example of the perils of a "growth for growth's sake" mindset, blended with yet another example of how lumbering, government-pampered telecom monopolies like AT&T and Verizon just aren't very good at this whole competition and innovation thing.

AT&T's repeated missteps were bad enough that they resulted in an investor backlash, the "retirement" of former AT&T CEO Randall Stephenson, and a newfound focus on firing more people than ever to recover debt. As is often the case, lower and mid-level management has to pay the cost for years of higher level managerial dysfunction. As is also often the case, the majority of press outlets that were eager to parrot AT&T's pre-merger promises are utterly absent when it comes time to tally the human cost of mindless merger mania.

Filed Under: layoffs, mergers, promises
Companies: at&t, dc comics, hbo, time warner

AT&T Has Now Eliminated 41,000 Jobs Since Its $42 Billion Trump Tax Cut

from the a-bad-deal-that-keeps-getting-worse dept

AT&T informed its union employees last week that the company would soon begin yet another round of layoffs, after repeatedly promising that industry deregulation and its $42 billion tax cut would result in job growth and a major network investment boom. According to the Communications Workers of America, AT&T says it's laying off 3,400 technician and clerical jobs across the country over the next few weeks. They're also shutting down over 250 AT&T Mobility and Cricket Wireless stores, which will eliminate another 1,300 retail jobs.

While many will imply these layoffs are due to COVID-19, they're simply part of a longstanding workforce reduction effort at AT&T. According to the union, AT&T has now eliminated 41,000 positions since receiving a $42 billion Trump tax cut. The CWA conveniently provided a chart, drawn from AT&T earnings reports and filings, that show what AT&T's been up to:

The problem: AT&T's CEO Randall Stephenson went on live television in 2017 and insisted that the Trump tax cut would result in "thousands of high paying jobs":

"These are not entry-level jobs. These are 7,000 jobs of people putting fiber in ground, hard hat jobs that make $70,000 to $80,000 per year...“I cannot overstate how important I think a tax bill that makes the US corporate taxes a competitive regime around the world — that’s big. That’s significant."

That, of course, never happened. And analysis of the Trump tax cut has made it clear that other than making a lot of rich folks notably richer, the cuts accomplished jack shit. Not only did the package not pay for itself, the economic boost it provided was short lived and negligible. And, one has to think, the money thrown at the nation's biggest corporations would certainly have come in handy during a raging pandemic with 45 million unemployed Americans and an endless parade of struggling startups and small businesses.

Granted that was just one of AT&T's many promises. AT&T also repeatedly claimed that the FCC's decision to neuter its authority over telecom (of which the net neutrality was only a small part) would result in unprecedented job growth and network investment. Again, the exact opposite happened, just like the last dozen times AT&T lobbyists have played this game in DC (BellSouth merger, net neutrality repeal, FCC broadband privacy rule repeal, fiber deployment subsidies).

Every, single time AT&T wants something (merger approval, deregulation, subsidies, tax breaks) it promises the Earth, sea and sky. And every, single time, the company fails to deliver and nobody on any level is held accountable. Ever. Nobody, in either party of the U.S. government, has taken any serious steps to thwart this idiotic gravy train (especially those myopically and often performatively focused on "big tech"). Meanwhile, about 90% of the coverage from "he said, she said" media outlets excludes this grift rodeo as essential context.

AT&T receiving countless billions in tax cuts, subsidies, and regulatory FCC favors in exchange for absolutely fucking nothing is the story. Yet that's simply not mentioned at all by most large outlets, despite the fact that AT&T's bullshit promises haven't even been scrubbed from the company's website yet.

While COVID-19 will likely provide cover, AT&T's real motivation lies elsewhere. The company spent so much money on megamergers (DirecTV in 2015, Time Warner in 2018) it's drowning in debt. And while these acquisitions were supposed to help the company dominate the streaming video and mobile video ad sectors, the company's actually been losing video subscribers hand over fist. In part due to rate hikes imposed on consumers to recoup said debt. It's an ouroboros of dysfunction caused by high-level executives, but as usual consumers and workers get to pay the real bill.

Filed Under: donald trump, jobs, layoffs, subsidies, tax cuts
Companies: at&t

'Job Creating' Sprint T-Mobile Merger Triggers Estimated 6,000 Non-Covid Layoffs

from the empty-promises dept

Back when T-Mobile and Sprint were trying to gain regulatory approval for their $26 billion merger, executives repeatedly promised the deal would create jobs. Not just a few jobs, but oodles of jobs. Despite the fact that US telecom history indicates such deals almost always trigger mass layoffs, the media dutifully repeated T-Mobile and Sprint executive claims that the deal would create "more than 3,500 additional full-time U.S. employees in the first year and 11,000 more people by 2024."

About that.

Before the ink on the deal was even dry, T-Mobile began shutting down its Metro prepaid business and laying off impacted employees. When asked about the conflicting promises, T-Mobile refused to respond to press inquiries. Now that shutdown has accelerated, with estimates that roughly 6,000 employees at the T-Mobile subsidiary have been laid off as the freshly-merged company closes unwanted prepaid retailers. T-Mobile says the move, which has nothing to do with COVID-19, is just them "optimizing their retail footprint." Industry insiders aren't amused:

"Peter Adderton, the founder of Boost Mobile in Australia and in the U.S. who has been a vocal advocate for the Boost brand and for dealers since the merger was first proposed, figures the latest closures affect about 6,000 people. He cited one dealer who said he has to close 95 stores, some as early as May 1.

In their arguments leading up to the merger finally getting approved, executives at both T-Mobile and Sprint argued that it would not lead to the kind of job losses that many opponents were predicting. They pledged to create jobs, not cut them.

“The whole thing is exactly how we called it, and no one is calling them out. It’s so disingenuous,” Adderton told Fierce, adding that it’s not because of COVID-19. Many retailers in other industries are closing stores during the crisis but plan to reopen once it’s safe to do so."

None of this should be a surprise to anybody. Everybody from unions to Wall Street stock jocks had predicted the deal would trigger anywhere between 15,000 and 30,000 layoffs over time as redundant support, retail, and middle management positions were eliminated. It's what always happens in major US telecom mergers. There is 40 years of very clear, hard data speaking to this point. Yet in a blog post last year (likely to be deleted by this time next year), T-Mobile CEO John Legere not only insisted layoffs would never happen, he effectively accused unions, experts, consumer groups, and a long line of economists of lying:

"This merger is all about creating new, high-quality, high-paying jobs, and the New T-Mobile will be jobs-positive from Day One and every day thereafter. That’s not just a promise. That’s not just a commitment. It’s a fact....These combined efforts will create nearly 5,600 new American customer care jobs by 2021. And New T-Mobile will employ 7,500+ more care professionals by 2024 than the standalone companies would have."

That was never going to happen. Less competition and revolving door, captured regulators and a broken court system means there's less than zero incentive for T-Mobile to do much of anything the company promised while it was wooing regulators. And of course such employment growth is even less likely to happen under a pandemic, which will provide "wonderful" cover for cuts that were going to happen anyway.

Having watched more telecom megadeals like this than I can count, what usually happens is the companies leave things generally alone for about a year to keep employees calm and make it seem like deal critics were being hyperbolic. Then, once the press and public is no longer paying attention (which never takes long), the hatchets come out and the downsizing begins. When the layoffs and reduced competition inevitably arrives, they're either ignored or blamed on something else. In this case, inevitably, COVID-19.

In a few years, the regulators who approved the deal will have moved on to think tank, legal or lobbying positions at the same companies they "regulated." The same press that over-hyped pre-merger promises won't follow back up, because there's no money in that kind of hindsight policy reporting or consumer advocacy. And executives like John Legere (who just quit T-Mobile after selling his $17.5 million NYC penthouse to Giorgio Armani) are dutifully rewarded, with the real world market and human cost of mindless merger mania quickly and intentionally forgotten.

Filed Under: consolidation, jobs, layoffs, mergers, promises
Companies: sprint, t-mobile

AT&T Preps For Even More Cuts After $42 Billion+ In Trump Tax Cuts And Regulatory Favors

from the ill-communication dept

It seems like only yesterday that AT&T CEO Randall Stephenson was promising on live television that if Trump followed through on his tax cuts, the company would dramatically boost investment and add thousands of new jobs. Not "entry-level jobs," mind you, but "7,000 jobs of people putting fiber in the ground, hard-hat jobs that make $70,000 to $80,000 per year." Each $1 billion in new investment spurred by government favors, AT&T insisted, would result in 7,000 new jobs. "Lower taxes drives more investment, drives more hiring, drives greater wages," Stephenson said.

The same rhetoric was a common occurrence as AT&T lobbied to have net neutrality (and FCC oversight in general) stripped away, insisting this would result in significant job creation and a massive surge in investment. The amount of money AT&T saved from turning the FCC into a glorified rubber stamp for industry is likely incalculable. The tax cuts were more easily calculated, with CBS suggesting the cuts should net AT&T around $42 billion.

Here on planet Earth the exact opposite of what AT&T promised occurred: the company actually decreased its 2020 CAPEX by some $3 billion, and unions say the company has cut more than 37,000 jobs since the Trump tax cuts took effect.

This week, AT&T announced it would be conducting another $6 billion in cuts that will include additional "headcount rationalization," which in human language likely indicates even more layoffs:

"The effort may include layoffs. Stankey didn't specifically mention that word, but instead said the operator would enact a "headcount rationalization," a term that could include layoffs as well as reductions by not hiring replacements for workers who retire or leave. That program, he said, would reduce the operator's labor expenses by 4%, or roughly $1.5 billion, by the end of 2020. He added that the reduction would target employees in AT&T's call centers, management structures and distribution strategy. AT&T employed roughly 252,000 people at the end of September."

It's odd that when news outlets discuss AT&T's cost-cutting and layoff strategies, they fail to mention we just got done throwing tens of billions in regulatory favors and tax cuts at the company in exchange for absolutely nothing. In fact, we apparently paid AT&T to do the exact opposite of what it repeatedly promised to do. It's particularly galling given that most of AT&T's current problems stem directly from spending too much money on harmful megamergers and bumbling its entry into the online streaming video space.

But as usual, the end result isn't AT&T executives paying any sort of penalty for incompetence, it's the company's workers and customers who have to pay for the mistakes -- in more ways than one. And it's all being subsidized by American taxpayers who, thanks to a general press unwillingness to call a duck a duck, often don't understand the scope of the grift directly underfoot.

Filed Under: competition, jobs, layoffs, monopolies, subsidies, tax cuts
Companies: at&t

AT&T CEO Nabbed Record $32 Million Compensation In 2019, Despite Rampant Bumbling, Layoffs

from the ill-communication dept

Last year wasn't a particularly good one for AT&T. Despite spending more than $150 billion in mergers in a bid to dominate the streaming video space, the company instead lost 4 million TV subscribers on the year, not exactly what company executives were aiming for. Not only did AT&T's mergers saddle the company with a mountain of debt, the company then tried to extract that debt from its customers in the form of numerous price hikes, ignoring that's not how streaming TV competition is going to work. The company also bumbled its streaming TV branding so badly, it confused even the company's own marketing and support departments.

That's before you get to AT&T's empty promises in 2019, which include receiving billions in regulatory favors (like killing net neutrality and privacy rules at the FCC), subsidies, and $42 billion in Trump tax cuts for promises that never materialized. Not only did they not materialize, but AT&T actually engaged in the exact opposite behavior it had originally promised, trimming overall network investment and laying off nearly 37,000 jobs just since the Trump tax cuts were announced.

Now your first question is probably but how is AT&T CEO Randall Stephenson doing in the wake of all this? Well you'll be happy to know he's just fine: Stephenson received a record $32 million in compensation in 2019, despite a wave of bungled merger mania so intense it even pissed off the company's investors, triggering a revolt. But yes, good job, Randall:

"AT&T CEO Randall Stephenson's total compensation was more than $32 million in 2019, giving him a 10 percent raise while he slashed tens of thousands of jobs and reduced spending on network upgrades. Stephenson's total compensation was $28.72 million in 2017, $29.12 million in 2018, and $32.03 million in 2019, an AT&T filing to the Securities and Exchange Commission said. His pay raise was driven by stock performance."

In short, AT&T's employees have been asked to share the brunt of Stephenson's missteps, while Stephenson himself saw his pay increase dramatically. Not too surprisingly, the thousands of AT&T employees fired aren't particularly okay with that:

"That felt like a complete slap in the face, saying how great we were but here is your final pay stub because we did so great last year so we’re going to keep this money and not invest in back into the employment force like they said they would,” said Lorenzano, who worked at the company for over four years before receiving his termination notice, along with dozens of other AT&T DirecTV technicians across California."

Again, you'll see no shortage of stories ahead of mergers (like AT&T Time Warner, or T-Mobile Sprint) parroting telecom companies usually false claims that such megadeals create "amazing new synergies." In reality, they generally involve head fakes and layoffs, yet for every 1,000 stories hyping the claimed benefits of such deals, there's only a handful that follow up to see if those promises actually materialized. When it comes to AT&T, nearly everything the company promised would happen in 2019 failed to happen. And while the employees and customers paid the price, its CEO was, once again, handsomely rewarded.

Filed Under: broadband, competition, jobs, layoffs, randall stephenson
Companies: at&t