AT&T/T-Mobile Deal Gains Momentum from U.S. States

From DailyTech: AT&T has been working to acquire Deutsche Telekom AG's T-Mobile USA in a $39 billion deal, but the U.S. Senate's antitrust committee recently expressed doubts in regards to the merger. Now, AT&T is receiving support on the matter from one U.S. state regulator and 11 state attorneys general who are for the merger.

Senator Herb Kohl (D-Wisc.), chairman of the antitrust committee, as well as Representative Anna Eshoo (D-Calif., 14th District), chairwoman of the House Energy and Commerce Communications and Technology Subcommittee, Congressman Edward Markey (D-Mass., 7th District), and Rep. John Conyers (D-Mich., 14th District) are among those opposing the AT&T/T-Mobile merger. They openly expressed their opinions in a letter to the Department of Justice (DOP) and the Federal Communications Commission (FCC) saying that such a merger would kill competition and hike prices for customers.

"We believe that AT&T's acquisition of T-Mobile would be a troubling backward step in federal public policy -- a retrenchment from nearly two decades of promoting competition and open markets to acceptance of a duopoly in the wireless marketplace," they wrote. "Such industry consolidation could reduce competition and increase consumer costs at a time our country can least afford it."

AT&T responded to the U.S. Senate committee, saying that these opinions are "inconsistent with antitrust law, is shared by few others, and ignores the many positive benefits and numerous supporters of the transaction." AT&T also mentioned that the merger would help it expand a quicker service to more people.

View: Article @ Source Site