Understanding the AT&T Takeover of T-Mobile

Is the proposed purchase of T-Mobile by AT&T legal? Probably not. News of the proposed merger was immediately met with concerns that it violates antitrust laws that are supposed to prevent monopolies from leaving consumers with raw deals. Industry insiders told Politico that even if the deal is approved by the Federal Communications Commission and the Department of Justice, it will likely be met with a “laundry list of conditions” that could include: net neutrality guarantees, lower early termination and text messaging fees, and improved service for low-income communities. Yet what some analysts seemed even more disturbed by is the company’s apparent disregard for the sins of its founders. David Lazarus reminded us on Monday at the Los Angeles Times that when the Bell telephone system — i.e., AT&T — was broken up back in 1984, the general consensus was that it was a good move that could increase competition in a market that, until then, had only truly known one national carrier. And then everything changed.

What does the deal mean for users of color? In December, after months of intense scrutiny, the FCC passed a set of lukewarm rules that were supposed to keep the Internet’s playing field equal. Those rules, known as net neutrality provisions, prevented carriers from playing favorites and charging users extra fees for Internet fast lanes on home-based broadband networks. But the mandate was noticeably missing any mention of how mobile carriers can conduct their business. Mobile broadband is fast becoming the future of the Internet, and it’s already an important way in which communities of color are helping to close the digital divide. A Pew study released last year found that blacks and Latinos are among the biggest users of mobile technology, and in many cases, it’s the primary way that they surf the Web.