New Jersey Opposes AT&T/T-Mobile

The New Jersey Division of Rate Counsel says the Federal Communications Commission should deny the application of AT&T to acquire T-Mobile USA’s assets and operations from Deutsche Telekom AG because the proposed transaction is not in the public interest. The proposed merger would eliminate an actual and potential competitor that serves relevant wireless markets throughout the United States, lead to excessive and harmful market concentration in wireless markets, and create significant pressure for Sprint Nextel Corporation, as the distant third national wireless carrier, to merge with another carrier.

The proposed transaction would harm competition and reduce consumer choice. As a result, consumers of wireless services throughout the country, whether served by AT&T or by other carriers, likely would pay higher rates and receive worse service quality, If the merger is approved, AT&T and Verizon would control the vast majority of the nation’s access to the public switched network, including wireline and wireless access. Duopolistic control of consumers’ access to voice and broadband is antithetical to the public interest. Furthermore, the FCC’s exemption of the wireless industry from an important component of its recently issued network neutrality rules heightens the risks of this proposed market concentration for consumers’ nondiscriminatory and open access to the network