Economic Policy Institute Debates AT&T T-Mobile Merger
The Economic Policy Institute gathered leading industry experts for a panel to debate the impending merger between AT&T and T-Mobile.
“T-Mobile has been trying for the past three years to reverse their revenue loss but has not been successful, as a result Deutsche Telekom decided to stop providing funding to T-Mobile for expansion,” explained Debbie Goldman, Telecommunications Policy Director & Research Economist, Communications Workers of America. “T-Mobile does not have the money or spectrum to upgrade its network to real 4G, and without the merger with AT&T the network will be sold off to smaller companies.” Goldman went onto call AT&T the best company to buy the T-Mobile network since both companies use similar technology, which would allow for a quick integration of the two networks. Sprint purchased Nextel in 2004 but still has not been able to fully integrate the Nextel network into the Sprint network and now maintains two separate networks.
Parul Desai, communications policy counsel for Consumers Union, cautioned that the merger would lead to increased market concentration and create a duopoly between AT&T and Verizon that would increase prices for consumers. “Right now T-Mobile is able to offer a similar product to AT&T at a lower price giving consumers the choice of bringing their handsets to T-Mobile if AT&T is too expensive,” Desai said. “If AT&T were able to merge with T-Mobile there would only be a single GSM provider in the US which will lead to a decrease in handset diversity.”