The Computer
& Communications Industry Association, which has advocated for 39 years for
competition policy that fosters innovation and allows the next start up and
smaller competitors to have a chance to succeed, filed a petition with the FCC Tuesday asking it to deny AT&T’s proposal to take over its
competing wireless carrier, T-Mobile.
Technology companies from handset makers to gaming systems to
Internet applications increasingly depend on wireless access to reach their
customers. They need spectrum and Internet users need the ability to reach the
wireless apps of their choice, so the merger, giving AT&T more power and
control over these elements is a threat – given AT&T’s past anticompetitive
behavior.
CCIA was actively involved in the original breakup of AT&T in
1984, which helped create a dynamic and competitive environment that has
allowed numerous innovations like Skype and the iPhone to flourish. CCIA
offered FCC examples of AT&T’s past anticompetitive behavior in its
petition and asked that the government block the merger.
The following statement can be attributed to Ed Black:
“CCIA used the FCC’s own market data in its “Fourteenth Report” to
illustrate the market concentration that would result from this merger and why
it should be denied. If wireless competition were allowed to further erode
there would be few remedies to get it back. We urge others who are wary of over
regulation to also oppose this merger so that greater regulation is not needed
down the road to clean up the mess this merger would create.
“Innovation from operating systems to handsets could be held back
or blocked from ever reaching the marketplace. AT&T has blocked numerous
innovations that have competed with its business model in the past from fax
machines to cell phones and this brazen merger proposal makes it clear they are
once again seeking market power which will allow them to hold back innovation
and maximize profits. Why would we once again install them as gatekeeper?
“AT&T says it is facing a spectrum crunch, despite being the
largest spectrum holder in 21 major markets. AT&T got into this position
because it failed to invest more fully in its network. They may try to argue
that they’ll be good this time, stop warehousing spectrum and build out to
rural areas. But why is that credible, given their history and track record?”
“There are no conditions available to the Commission that would
allow the second largest wireless carrier to buy the fourth largest carrier and
still meet the test for somehow being in the public interest. It is not. No
amount of lipstick, lobbying tactics by AT&T or legal maneuvering with
conditions can change the facts of this case. This merger would raise prices
for consumers and small businesses with mobile phones and Internet connections
and dampen innovation. It is contrary to antitrust law, and against the public
interest and must be stopped.”
“As the FCC reviews competition in the wireless market, AT&T’s
history and its own precedent in prior mergers, we believe they will conclude
that this proposal SHOULD be summarily denied. We hope the Commission quickly
grants our petition and the similar ones from others in industry and consumers’
groups so that the competitive damage to T-Mobile during this consideration is
minimized.”
