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Michigan lawmakers target predatory loan companies; NY jury hears tape of Trump and Cohen Discussing Hush-Money Deal; flood-impacted VT households rebuild for climate resilience; film documents environmental battle with Colorado oil, gas industry.

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President Biden defends dissent but says "order must prevail" on campus, former President Trump won't commit to accepting the 2024 election results and Nebraska lawmakers circumvent a ballot measure repealing private school vouchers.

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Groups: Consumers Win When AT&T Drops Merger Plan

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Thursday, December 22, 2011   

ALBUQUERQUE - AT&T wanted T-Mobile's cellular airways, or spectrum. But this week, it officially ended its $39 billion effort to take over T-Mobile.

The decision to drop the merger bid signals a stronger stand on antitrust oversight by the Obama administration than that of its predecessor – although to Amalia Deloney, grassroots policy director for the Center for Media Justice, there's more to it.

"The more exciting news is what led to it, which is really a massive groundswell of people from all across the country, saying that this wasn't in consumers' interests or community members' interests."

Deloney adds people she spoke with did not believe a merger would lead to the creation of jobs.

Hakim Bellamy, strategic director for the Media Literacy Project, believes the decision to end the merger has not only kept prices from increasing, but has saved jobs in New Mexico.

"We have a T-Mobile call center in New Mexico; it equals about 2,000 jobs. One of the few things AT&T did not hide was that there would be 'efficiencies,' which really means job loss. That means that, if you have two calls centers in the same state, one of the is going to shut down once you merge the companies."

Bellamy adds that consolidation also means less motivation for people to develop new technology. He also believes it is likely not the last to be heard from AT&T.

"I think what they're going to do is, they're going to restructure. There was talk that they were going to remove the merger language and simply buy T-Mobile outright – that's possibly going to be AT&T's next move. Deutsche Telekom, who is T-Mobile's parent company, is looking to sell. They've been talking about divesting from T-Mobile for awhile."

For now, however, Deutsche Telekom walks away with a $4 billion consolation prize, a "break-up fee" that was inserted into the original deal. In a statement, a Justice Department official said, "Had AT&T acquired T-Mobile, consumers in the wireless marketplace would have faced higher prices and reduced innovation."



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