AT&T flings half-truths in its T-Mobile deal defense

AT&T appears to talk out of both sides of its mouth on multiple occasions in its response to the Department of Justice's antitrust suit against the proposed acquisition of T-Mobile.

For example, AT&T issued a glowing report on the wireless industry's health -- with the sole exception of the carrier it is trying to buy. "T-Mobile [is] the only major carrier to have actually lost subscribers in a robustly growing market," AT&T said. How accurate is that claim? As always in this merger deal, the reality is complicated.

The sentence is technically true, but only with a very narrow reading of "major," "subscriber," and "actually." AT&T is correct in saying that among the four national carriers -- a group that also includes Verizon Wireless, AT&T and Sprint -- T-Mobile is the only carrier last quarter to have suffered a net loss in subscribers. But Sprint (S, Fortune 500) has also been losing subscribers like crazy, shedding a net 101,000 last quarter. In fact, Sprint has lost net subscribers under contract in all but one quarter since the second quarter of 2007.