Activists Take On AT&T/T-Mobile Merger

June 17th, 2011 - By TheEditor

By J. Smith

Activist organization ColorOfChange.org has launched a new campaign against the AT&T/ T-Mobile merger, calling on the FCC to block the deal. In a thorough report of the attempted deal, Color of Change says “AT&T wants to buy T-Mobile – and it could have huge, negative consequences, especially for Black Americans.” They drew up a report outlining the potentially harmful economic effects the merger could have and question the major civil rights groups that have come out in support of the merger.

“The deal is likely to destroy jobs, raise the price of cellular service and threaten net neutrality for wireless high-speed internet,” the report claims. Net neutrality essentially prevents large corporations from marginalizing smaller companies that threaten their profits or promote an opinion that is dissenting from the popular one. “Protecting net neutrality for wireless broadband in increasingly important as more and more people use their phones to access the internet, especially African Americans,” the report claims.

Color of Change’s study says that combining the two companies would effectively get rid of the competition, causing a snowball of other problems to gather, and that false and deceptive arguments have been used to support the merger. Read them here. But what is most troubling is the light the report shines on civil rights groups who have come out as strong supporters of the corporate giant after years of donations from the very groups in question.

“In order to shift focus away from the facts regarding the serious impact on the deal on marginalized communities, AT&T is trying to show the FC that civil rights groups support the merger,” the report said. And indeed, groups like the NAACP, National Action Network and the National Urban League have lent their support to the company’s cause. “Many of these groups have very close, long-standing relationships with AT&T, and have received significant financial support from the company.”

Those groups have the right to support whichever cause they’d like, but not if it works against the best interest of the groups they are charged with representing.

More from StyleBlazer
More from MommyNoire

Comment Disclaimer

Comments that contain profane or derogatory language, video links or exceed 200 words will require approval by a moderator before appearing in the comment section. XOXO-MN

  • wojo

    @ mcbride, actually Verizon lowered they’re data prices, from 59.99 for 5GB, currently its 50.00 for 5GB of data, they also tried out a 15.00 dollar for 150MB for phones, but people didn’t know how to calculate data, or people would go over, and pay an additional 15.00, now they went to 30.00 for unlimited data, but hurry up cause its not gonna last, they’re talking about a tiered data pricing plan soon.

  • mcbride

    As the Commission considers the AT&T’s takeover of T-Mobile,1 I urge the Commission to
    look closely at the harms this merger would cause to consumers due to the lack of competition in
    the wireless market. Consider that in a post-merger landscape AT&T and Verizon would control
    nearly 80 percent of the market for mobile telecommunications. As a result of this merger, the
    wireless market would be more consolidated than the markets for oil, banking, automobiles and
    air travel. The this level of concentration in the wireless market for a service that all Americans
    increasingly depend on to communicate. In 1984, when the Justice Department broke up the old
    Ma Bell, the prevailing consensus was that AT&T had gotten too big. But the AT&T-T-Mobile
    merger would create a behemoth that’s substantially bigger than the old conglomerate. Humpty
    Dumpty, put all back together again. The merger hands two companies, AT&T and Verizon,
    control over nearly 80 percent of the wireless market. That translates to widespread abuses of
    market power, something AT&T is already known for. The results of this merger will almost
    certainly be higher prices, fewer choices, an inevitable loss of jobs, and serious threats to a free
    and open mobile Internet. AT&T and Verizon currently control nearly two-thirds of the market
    and have a long history of raising prices in concert, as they both did early last year.

  • http://racerelations.ws Phil

    @jake What are you talking about? As an ex-Alltell-now Verizon customer, I can tell you that the competition is less, and the prices are higher. The same will happen if the new Ma Bell is allowed to devour T-mo. Blacks, as well as everybody else will be virtually forced to pay for higher prices for services that they don't necessarily use, or can't afford.

    Moreover, there are plenty of foreign companies in the U.S, especially in the wireless-consumer electronics world.

    To hell with AT&T.!

  • Jake

    This is stupid, they will own T-Mobile fair and square. Deutsche Telecom does not belong in the United States. Go AT&T!

Get the MadameNoire
Newsletter
The best stories sent right to your inbox!
close [x]