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Dear Feds: Don't You Dare Let AT&T Buy T-Mobile

Say goodbye to competition, hello to gouging

By Nick McMaster,  Newser Staff

Posted Mar 21, 2011 7:13 PM CDT

(Newser) – AT&T's bid to buy T-Mobile is brilliant, writes Brett Arends for MarketWatch—for AT&T. For everyone else, it's "disastrous," if not downright anticompetitive. "It will let AT&T shut down a competitor, jack up prices, and save on customer service," he writes in a bleak look at the proposed merger. A fourth player "helped keep the other three at least semi-honest. If you think they’re arrogant now, just wait till they’ve cut this cozy club down to three."

Seems Arends himself jumped ship from AT&T to T-Mobile just a few weeks ago. Why? "Simple. T-Mobile offered me a better deal." Those are the same T-Mobile perks that AT&T's chair says the company "will look hard" at. And Verizon and Sprint use the CDMA network, while T-Mobile and AT&T use GSM, so AT&T will now have a monopoly on GSM. If you doubt that AT&T is trying to game the system, Arends writes, consider that "the company spent $15 million lobbying in 2010 alone. The biggest beneficiary? House Speaker John Boehner. It employs 93 lobbyists. Seven more and it would have its own private Senate."

In this July 19, 2010 file photo, the AT&T logo is displayed on the side of a corporate office in Springfield, Ill.
In this July 19, 2010 file photo, the AT&T logo is displayed on the side of a corporate office in Springfield, Ill.   (AP Photo/Seth Perlman, File)
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The presence of a fourth player in this industry helped keep the other three at least semi-honest. If you think they’re arrogant now, just wait till they’ve cut this cosy club down to three. - Brett Arends, MarketWatch

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COMMENTS
Showing 3 of 10 comments
LesileBenedict
Mar 24, 2011 9:49 PM CDT
@lolpie - I have to agree with you. There are actual network related questions that I haven't heard anyone address yet, even ATT itself. I mean I'm wondering how their prepaid market will be hit with this merger since I am a prepaid customer who uses the ATT network via Net01 prepaid. I wonder with the addition of TMobile to the network whether I will have to switch away from a GSM phone to another type of phone as I would have if I used NET10's other provider, Verizon.
lolpie
Mar 22, 2011 8:21 AM CDT
lol @ how none of these comments have to do with the article
vapidvortex
Mar 21, 2011 10:05 PM CDT
Be an AT&T stockholder like me, and you'll see things differently.

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