COMPTEL slams AT&T merger

AT&T's bid to buy T-Mobile could be dangerous and may chill growth, according to COMPTEL. Read the full statement.

COMPTEL chief executive Jerry James:

Since divestiture in 1984, AT&T has been on a mission to regain its monopoly dominance through mergers and acquisitions – first in local and long distance telephony, and now the wireless market. Allowing a single company to control such vast market power in the landline, wireless and broadband markets will have devastating economic consequences – from the loss of jobs and fewer choices for consumers, to higher prices and less incentive to deliver innovative offerings.

In addition, the concentration of network assets in the hands of one company will have a chilling effect on the growing wholesale marketplace. The most immediate impact of the proposed merger is the impending loss of jobs as AT&T will no doubt build on its legacy of terminating tens of thousands of employees in its pursuit for market dominance. One only need to look at statements AT&T made in 2006, noting that upon closing the BellSouth acquisition the company would shed 10,000 jobs.

As regulators prepare to examine this latest mega-merger, they should consider the consequences it would have on the competitive market, as well as the negative effects on an economy struggling with nearly 9 percent unemployment. This proposed consolidation represents a clear and present danger to competition and a recovering economy. There is no question that it should be rejected. For 30 years, COMPTEL has been the trade association promoting competition in all aspects of the communications industry, including wireline, wireless and broadband. Our members promote job growth and continue to invest millions of dollars into facilities and new products and services, Consumers and businesses alike have benefited from innovation, personalized services and lower prices that are possible only because of competition. Should the AT&T-T-Mobile merger be allowed to proceed, the communications industry will take several more steps backward to the predivestiture days when ‘choice’ consisted of a single company deciding what was in the consumers’ best interests.