
76 House Democrats voice support for AT&T/T-Mobile merger
76 House Democrats wrote to the Federal Communications Commission and Justice Department on Friday urging them to consider AT&T's commitment to deploying next-generation wireless coverage nationwide when reviewing the firm's proposed $39 billion acquisition of T-Mobile USA.
The lawmakers, lead by Rep. G.K. Butterfield (D-N.C.) cite AT&T's plan to deploy 4G wireless broadband networks to more than 97 percent of the country and argue the commitment will "create thousands of jobs, including many good paying union jobs with solid benefits, which will greatly contribute to our continuing economic recovery."
“AT&T has been a good corporate citizen to communities across America. This merger represents an opportunity to deliver a better wireless product that will benefit all, including those in rural areas," Butterfield said in a statement.
"We are encouraging the FCC and the DOJ to consider a number of important factors during the review process, including the proposed increases in coverage to those living in rural and underserved areas."
According to data from OpenSecrets.org AT&T has been among the leading donors to Butterfield's campaign committee since the 2006 election cycle, contributing $29,000 during that time period.
The advocacy group Public Knowledge was quick to point out the lawmakers stopped short of endorsing the deal but instead encourage the FCC and DOJ to conduct a thorough and expeditious review. President Gigi Sohn argued the firms have mislead lawmakers with regards to the deal's benefits.
"Nothing is to be gained from this deal except that a major competitor to AT&T will be removed from the market, resulting in higher consumer prices and less innovation," Sohn said. "We are disappointed that the members of Congress who signed the letter did not view this aspect of the deal more closely.”
Opponents argue the merger would leave AT&T and Verizon Wireless as the dominant mobile carriers, with Sprint a distant third. They fear reduced competition will lead to higher prices and less innovation, particularly with the loss of low-cost competitor T-Mobile.
Beyond the 4G commitment, proponents of the merger argue T-Mobile parent company Deutsche Telekom must inevitable sell due to its inability to invest sufficient resources to upgrade the carrier's network. AT&T is also the only unionized major wireless carrier, a key selling point for many Democrats.







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