Community Groups Oppose AT&T Takeover of T-Mobile

We at the Institute for Local Self-Reliance signed on to a letter organized by our friends at the Media Action Grassroots Network asking the FCC and Department of Justice to thoroughly review AT&T's proposed takeover of T-Mobile -- read the press release.

“Our communities cannot afford higher prices and less choices. We need the FCC and DOJ to block this takeover if it's found to be in violation of antitrust law and does not meet public interest obligations,” said Betty Yu, National Organizer for MAG-Net.

"If AT&T takes over T-Mobile, it will be a disaster for all mobile phone users. It will stifle information, choice and innovation- and lead to higher prices and fewer jobs nationwide, added CMJ's Policy Director, amalia deloney. "It's a real jobs and democracy killer.”

The groups also contend the takeover will disproportionately harm consumers of color, who rely on their cell phones to access the Internet more than whites. While 10 percent of whites access the Internet only from their phones, 18 percent of blacks and 16 percent of English-speaking Latinos depend on affordable wireless coverage to get online.

And an excerpt from the letter [pdf]:

The impact that this merger would have on affordable mobile phone service, broadband access and adoption, openness on the mobile web and broadband competition presents a real threat to our communities. We hope that the Department of Justice and Federal Communications Commission will examine AT&T's proposed acquisition of T-Mobile with appropriate scrutiny and protect our communities by blocking this merger.

We intend to host a series of open and participatory meetings in our communities to discuss this merger, and we hope that FCC Commissioners will commit to joining us. It is only by communicating directly with people and hearing our stories that you will feel our deep concerns with this merger and the devastating impact it would have on our communities.

We continue to advocate for universal, affordable, fast, and reliable broadband, which to us means a wired connection eventually to all homes that are connected to the electrical grid. But in the meantime, one cannot dispute that mobile access to the Internet is an essential tool for many communities and that this merger will raise their prices and make it harder for low-income communities to afford modern communications.

Further, we are deeply skeptical that further consolidation in this industry is anything but bad news for people and small businesses -- AT&T already has too much market power, allowing it to keep prices too high and investment too low.