Public Knowledge questions AT&T's special-access claim

AT&T alleged last week that its merger with T-Mobile will have no impact on the special-access market, a claim that was immediately viewed as suspect by wireless providers who buy access to AT&T's wireline network as a critical component in connecting cell phone calls.

Sprint, T-Mobile and public advocates have traditionally argued that AT&T overcharges for special access. The Federal Communications Commission (FCC) is considering action on the issue, and House Democrats see AT&T's special-access rates as a critical barrier to maintaining a healthy wireless market.

Public Knowledge legal director Harold Feld, a longtime advocate on the special-access issue, had several counterpoints to AT&T's argument:
"Two things. One, it's a multiplier effect on the harm to competition. The merger disadvantages Sprint (and other competitors except Verizon) not only because AT&T's market share increases, but because the increase works synergistically with all of AT&T's other advantages, including special access. Second, special access is a different market from a usual market because AT&T doesn't want to sell special access. They are required to do it by law. That's why the usual argument 'but of course we would never hurt our special access customers, that would be bad for business' argument is false. AT&T doesn't want special access customers. But they are required to offer their special access services at just and reasonable rates, so they grudgingly do so."