Industry Reacts to DoJ's AT&T/T-Mobile Lawsuit
Aug 31, 2011, 1:11 PM by Eric M. Zeman
The wireless telecommunications industry has started to react to the lawsuit filed today by the Department of Justice, which seeks to block AT&T's proposed acquisition of T-Mobile. Sprint, which has opposed the acquisition since it was first announced, voiced exuberance at the development. The company said, in part, "By filing suit to block AT&T’s proposed takeover of T-Mobile, the DOJ has put consumers' interests first." Federal Communications Commission commissioner Michael Chopp weighed in on the side of the government, saying, "I share the concerns about competition and have numerous other concerns about the public interest effects of the proposed transaction, including consumer choice and innovation." The Communication's Workers of America, however, are not so pleased. In a statement provided to media, the CWA said, "The DOJ's action has put good jobs and workers' rights at the bottom of the government's priorities." A Washington think tank also sided with the CWA, noting, "Those hoping for real competition in the critical 4G LTE market will have to wait." AT&T has vowed to fight the Justice Department's lawsuit.
Sprint's Comments
"The DOJ today delivered a decisive victory for consumers, competition and our country. By filing suit to block AT&T's proposed takeover of T-Mobile, the DOJ has put consumers' interests first. Sprint applauds the DOJ for conducting a careful and thorough review and for reaching a just decision – one which will ensure that consumers continue to reap the benefits of a competitive U.S. wireless industry. Contrary to AT&T's assertions, today's action will preserve American jobs, strengthen the American economy, and encourage innovation."
CWA's Comments
The decision by the U.S. Department of Justice to seek to block the merger of AT&T and T-Mobile USA is simply wrong.
In today's sinking economy, where millions of Americans are looking for work, the DOJ has decided to oppose a merger that will create as many as 96,000 quality jobs. In the U.S., where too many Americans, especially in rural areas, don't have access to the tools of Internet technology, the DOJ has determined that a plan to build out high speed wireless access to 97 percent of the country should be opposed.
In a nation where workers' rights are routinely violated, as occurs everyday at T-Mobile, the DOJ apparently believes that workers should be on their own instead of having a fair choice about union representation.
The DOJ's action has put good jobs and workers' rights at the bottom of the government's priorities. Just yesterday, AT&T announced that it would return a net 5,000 jobs to the U.S. on completion of the merger. That is the kind of corporate responsibility that more employers in the U.S. should demonstrate if we are ever to have an economy recovery.
Instead of acting to block this merger, our government should be looking to support companies that create and keep good jobs in the United States.
FCC Comments
Michael Chopp:
"Today' announcement shows a Department of Justice taking its pro-competitive responsibilities seriously. I share the concerns about competition and have numerous other concerns about the public interest effects of the proposed transaction, including consumer choice and innovation."
Mignon L. Clyburn:
"While the Department of Justice's complaint indicates that the parties did not convince the Antitrust Division of the merits of the proposed merger, the FCC has not concluded its review of this merger application. The information and data requests, which the FCC staff has sent to the applicants and other parties, demonstrate that the FCC is also carefully considering the competitive issues raised by the application to ensure that the public interest is served."
TechFreedom
The following statement can be attributed to Larry Downes, Senior Adjunct Fellow of TechFreedom, regarding this lawsuit:
The Justice Department's decision is surprising and disappointing. The Department's sensible merger guidelines, had they been applied, would have found the deal a great benefit to consumers at the local level, where mobile services are bought and used. The Department has instead untethered itself from rational analysis, inviting more delay and the potential to interrupt the mobile revolution, one of the few bright spots in the economy. Those hoping for real competition in the critical 4G LTE market will have to wait.
The following statement can be attributed to Berin Szoka, President of TechFreedom:
The DOJ has missed the forest for the trees. Neither company has the spectrum to offer a viable 4G LTE service. Only by combining their spectrum can the two companies compete effectively with Verizon's LTE service. Such services could also compete with traditional ISPs who provide home broadband access.
The real problem here is outdated central planning of spectrum. This merger was in part an attempt to overcome government mismanagement of the most vital resource of the digital economy. By blocking the deal, the DOJ is compounding harmful government meddling in the digital economy.
Thus, ironically, in the name of protecting consumers, the DOJ ultimately will deny them meaningful choices in high-speed mobile broadband services.
About the author, Eric M. Zeman:Eric has been covering the mobile telecommunications industry for 17 years at various print and online publications. He studied at Rutgers Newark and University of Kentucky, and has a degree in writing. He likes playing guitar, attending concerts, listening to music, and driving sports cars.
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Comments
I sense desperation.
AT&T Should bring back those 5000 jobs anyways...
Just yesterday, AT&T announced that it would return a net 5,000 jobs to the U.S. on completion of the merger. That is the kind of corporate responsibility that more employers in the U.S. should demonstrate if we are ever to have an economy recovery.
Why not just bring them back merger or no merger... if they are truly concerned about America and the economy, bring back those jobs no matter what. It isn't as if these 5000 jobs will put AT&T into the red. Oh, that's right... they don't really care.
What they're trying to pull here is similar to a retail store raising it's prices, then offering a "sale" as an enticement. Umm, I don't buy into that B.S.
Bastards!!!
My Thoughts...
"...the DOJ has put consumers' interests first."
I'm pretty sure they mean "the DOJ has put OUR interests first" there. I think that listening to these companies go on and on petitioning the government to stop their competition for them is getting more than irritating.
...including consumer choice and innovation."
Now, how does that make sense? What is innovation if it is not creating something new. competing differently or figuring out a way to overcome obstacles?
The definition of innovation: "A new method, idea, product, etc..."
How is this blocking innovation? By definition innovation requires something NEW, something fresh. Blocking this merger stifles innovation in eve...
(continues)
Think Tanks
CWA
ATT only bringing back jobs from oversee or creating new jobs ONLY if merger go through.
no merger, they not going to creating new jobs!
Their AT&T paycheck must have gotten lost in the mail.
Either way, they'll probably still find a way to make this deal go through.
