AT&T/T-Mobile Merger

On March 21, the nation's second-largest wireless carrier, AT&T, announced its intent to buy T-Mobile, the 4th largest carrier and the only low-price carrier with a national footprint.If the merger is approved, AT&T would surpass Verizon as the largest mobile carrier in the country, with nearly 40 percent of customers.

Together, AT&T and Verizon would have over 70 percent of the market.  The acquisition will cost AT&T $39 billion, an investment which AT&T states will improve service for its customers and allow it to eventually offer 4G wireless broadband to 95% of the country.  Critics caution against the creation of a wireless duopoly, especially because this merger would eliminate the most viable low-price option on the market today.

The merger will require approval from the Department of Justice, which looks at anti-trust issues, and the Federal Communications Commission, which will review the deal to determine whether it is in the public interest.  The California Public Utilities Commission may also conduct its own review.

On April 19, The Greenlining Institute and The Utility Reform Network hosted a public forum on the impact of the proposed acquisition, at which AT&T California President Ken McNeeley and Commissioner Cathy Sandoval of the California Public Utilities Commission answered questions from the community. Links to some of the media coverage of the forum are below.



Univision: http://univisionfresno.univision.com/noticias/video/2011-04-18/como-te-afectaria-la-fusion

Prior Media Coverage on AT&T/T-Mobile Merger

6/9 - CA Public Utilities Commission to Probe AT&T/T-Mobile Deal
Policy experts at The Greenlining Institute applauded today’s decision by the California Public Utilities Commission to investigate AT&T’s proposed purchase of T-Mobile and urged the Federal Communications Commission to closely scrutinize the planned merger.

4/22 - The Federal Communications Commission and the Department of Justice recently began their review of AT&T’s bid to purchase rival mobile service provider T-Mobile for $39 billion. The FCC and the DOJ will investigate the impact the merger will have on competition in the wireless market.
http://www.greenlining.org/news/in-the-news/2011/att-t-mobile-merger-who-could-be-left-wire-less

4/18 - More customers are opting for lower-price wireless plans, yet AT&T moves to buy up the nation's largest low-price carrier, and focuses more of its business on large multinational corporate customers - is it really operating in the public interest?
http://www.nytimes.com/2011/04/18/technology/18att.html

4/8 - Verizon announces it will end its one-year contract option, after AT&T announced the T-Mobile merger.  If there is sufficient competition in the wireless market, shouldn't carriers be adding new options for customers, instead of scaling back?
http://www.mobiledia.com/news/86502.html

4/1 - Net Neutrality will come up in review of the AT&T-T-Mobile merger: http://www.guardian.co.uk/commentisfree/cifamerica/2011/apr/01/net-neutrality-mobilephones

3/31 - FCC Commissioner Michael Copps says AT&T may face "an even steeper climb" than Comcast and NBCU in getting its merger approved: http://www.reuters.com/article/2011/04/01/us-tmobile-att-fcc-idUSTRE7300D420110401

3/24 - The Economist says "Best to block it.": http://www.economist.com/node/18440809

3/22 - Fox News says AT&T-T-Mo merger is "a bad idea": http://www.foxnews.com/scitech/2011/03/22/att-t-mobile-return-ma-bell/