We are happy to announce that AT&T has withdrawn their plans to acquire T-Mobile. Thanks to everyone for their support!

REC has gone on record to oppose the AT&T purchase of T-Mobile USA, Inc.

Why does REC oppose this merger?
The primary reason for our opposition is technical. The acquisition of T-Mobile by AT&T will combine the two GSM providers in the United States into a single carrier. This acquisition also has impacts on foreign visitors.

What is GSM?
Global System for Mobile. This is an international standard that is used by many carriers around the world. The use of GSM permits phones to "roam" into other countries.

What about Verizon and Sprint?
Verizon and Sprint use Code Division Multiple Access or CDMA protocol which is not compatible with GSM. CDMA is used in some nations but does not have the same penetration/coverage as GSM. Sprint and Verizon do provide "world phone" handsets that are dual mode CDMA and GSM.

Why is having only one GSM provider a bad idea?
The main reason is portability. An unlocked GSM phone can be ported to a different provider without a significant investment in new handset equipment. REC feels that customers should have a recourse if they are dissatisfied with their carrier and be able to move to a second carrier.

What impacts does the acquisition have on foreign visitors?
Foreign visitors with GSM phones can roam on either AT&T or T-Mobile while in the United States using purchased "SIM" cards. In addition, foreign carriers may have roaming agreements with AT&T or T-Mobile. By having competing carriers in the GSM segment, it allows foreign carriers to have some leverage when negotiating roaming agreements. If there is only one carrier, it creates a "captive audience" environment where foreign carriers have no recourse to negotiate roaming rates resulting in higher roaming rates for foreign end-user customers and the potential of increased roaming rates when United States residents are roaming in foreign countries.

What if Sprint or Verizon was to acquire T-Mobile? Would that create a problem because of two incompatible systems (CDMA and GSM)?
There would be a new plethora of issues if Sprint or Verizon was to acquire T-Mobile but with such an acquisition, there would still be two competing providers in the GSM spectrum. If Sprint or Verizon would acquire T-Mobile, it's very possible that they would do so to obtain their customer base and then eventually work these customers into their CDMA network while placing new customers in the CDMA network. The acquiring carrier would have the GSM network for existing customer base and international roaming. It is very possible that the acquiring company could sell off the GSM spectrum and international roaming business to another company to compete with AT&T in the GSM arena. REC will just not support AT&T taking that GSM spectrum in the future.

Why did REC have issues with a Sprint ad that opposed the acquisition?
We opposed the ad as it depicted an image that was very offensive to the transsexual/transgender community and also due to the ad being "approved" by non-profit organizations that support causes similar to those supported by REC. We felt that it was not appropriate that these organizations would support their cause at the expense of another cause.

Why does REC feel that the comments filed by the Gay and Lesbian Alliance Against Defamation (GLAAD) were inappropriate?
GLAAD is an organization that is underwritten by corporate funding and individual donors with a mission to address negative stereotypes of gay, lesbian, bisexual, transsexual/transgender (GLBT) persons in the media. GLAAD's involvement in a telecommunications merger was out of character for the mission of this organization. It was later noted that the comments may have been prompted by a significant donation to GLAAD by AT&T. REC as an organization became involved because GLAAD had never acknowledged the offensive Sprint advertisement and REC did most of the outreach to the organizations involved. This is work that GLAAD should have done but they were apparently "under the influence" of AT&T. This could be seen as a conflict of interest and REC feels that this was a breach of trust of GLAAD's non-telecom underwriters, benefactors and individual donors.

We do note that GLAAD president Jarret Barrios did resign over the endorsement of the AT&T acquisition.

Is REC a GLBT organization with a GLBT mission?
REC as an organization does not have a GLBT specific mission, however when we evaluate our position on issues, we look at diversity impacts not just for sexual orientation and gender identity but also for gender, race, creed, color and other classes. All of those involved in REC are community members. Normally, GLBT issues may be expressed by REC's Michi Eyre outside the auspices of REC Networks.