Free Press: AT&T Fails to Make Case for Merger

Free Press filed reply comments with the Federal Communications Commission challenging AT&T’s proposed takeover of T-Mobile.

Free Press’ filing disputes AT&T’s claims that the merger will bring better broadband coverage and improved service to consumers, create jobs and increase investment, and lower prices.

"AT&T's argument basically boils down to the proposition that what's good for AT&T is good for the country. Of course, the FCC and the Department of Justice cannot accept this self-serving claim," said Free Press Policy Director Matt Wood. "A monopolist's hollow promises to provide better broadband coverage and improved service cannot overcome this deal's obvious harms to competition and consumers. AT&T says it will provide broadband to 97 percent of the country if it is allowed to buy T-Mobile, but in public statements the company already touts its rollout of 4G wireless services to that same percentage of the nation without the merger by the end of 2012. Rural advocacy groups voicing support for this deal have been duped by AT&T, because people in areas that supposedly will benefit from AT&T¹s merger promises will already have access to 4G services from AT&T and other carriers next year. AT&T's promises about investment and jobs are similarly misleading, as the company touts to its investors the decreases in investment that this merger would allow. AT&T can talk about creating synergies all it wants, but it cannot pretend at the same time that it will increase investment in American jobs and infrastructure. The deal's real benefit to AT&T would be a reduction in the competition it faces - accompanied by greater incentives and improved ability to raise prices and tighten control over its customers. In following antitrust law and the public interest mandate, there is no other choice but to block this takeover."