Monday, June 20, 2011

We are absolutley against ATT buying T-Mobile

We are 110% opposed to the ATT / T-Mobile merger because the merger will hurt Black consumers by rewarding poor customer service and high prices. It will also reduce employment in a sector of the economy with above average wages and growth. Finally, it will reduce competition and innovation in the wireless marketplace.

The merger would:
1. Reduce employment
2. Raise prices
3. Reduce competition
3. Increase corporate bonuses
5. Allow the control of 80 percent of the cell phone market by two companies: ATT & Verizon
6. Stifle innovation

We also review many of the individual and institutional comment posted on the FCC website. The comments broke down into three categories: Individual Comsumers (Opposed to the merger), Institutions (For the merger) and public interest groups (generally opposed or conditional support)

All of the reviewed, individual comments criticized ATT for poor service and/or high prices. Many mentioned be “locked” into a long-term contract.

Institutions typically cited the benefits of ATT in their jurisdiction such as the jobs ATT generates or the taxes it pays.

Public interest groups provided the most comprehensive opposition to the merger. Many filed well reasoned briefs with detail on the impact of the merger on different groups such as low-income or rural.

All three groups claimed to speak for the consumer.

The justice department is also looking into the anti-competitive aspects of the merger.

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