Verizon Chief McAdam Says AT&T’s Bid for T-Mobile USA ‘Had to Occur’

Verizon Communications Chief Executive Officer Lowell McAdam said AT&T’s proposed acquisition of T-Mobile USA “had to occur” as mobile-phone carriers use more wireless spectrum.

“The AT&T merger with T-Mobile is kind of like gravity, it had to occur,” McAdam said. If the government wants to stop the takeover, it needs to have a plan to distribute spectrum and ease the crunch some carriers are facing, he said. “We’re going to watch that very closely.” “If you look at the path that wireless is on, clearly we need to have more spectrum in the marketplace,” McAdam said. McAdam also said Verizon Wireless, the mobile-phone carrier it co-owns with Vodafone Group, will pay dividends if it doesn't need its cash for other purposes, such as spectrum purchases. “When it makes sense, we'll have a dividend,” McAdam said. “When there’s a better first use for those dollars, we'll do that. The key is, for us, that Verizon gets to make that decision.”