Public Knowledge Criticizes New AT&T ‘Model’ for T-Mobile TakeoverJuly 25, 2011
AT&T is due today to submit another economic “model” to justify its $39 billion takeover of T-Mobile. The following is attributed to Gigi B. Sohn, president and co-founder of Public Knowledge:
“It is clear that AT&T’s submission of a new justification for taking over T-Mobile is exactly like the coach of a losing team calling time out so he can work the referees. While the Federal Communications Commission (FCC) stops its merger review process to examine the new plan, AT&T will use the time to spend more millions of dollars lobbying federal, state and local officials and recruiting non-governmental groups to support what is clearly a failing action.
“Unless this new ‘model’ can come up with a different answer to the problem of 4-1=3, (which would inevitably be followed by 3-1=2) we’re not interested. Removing a major competitor from the national wireless market still makes no sense.
“Opponents have shown that this deal would cost tens of thousands of jobs, including thousands of jobs for minority workers, would give two companies a chokehold on the wireless industry, lead to higher prices and less innovation. No new model will show otherwise.
“This merger was on track for a speedy resolution until this AT&T attempt to derail it. The FCC and Justice Department should continue to move forward to an expeditious resolution of this matter despite the obvious AT&T stalling tactic.”