Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
1Activity
0 of .
Results for:
No results containing your search query
P. 1
Merger Policy Brief 8-16-11

Merger Policy Brief 8-16-11

Ratings: (0)|Views: 17 |Likes:
AT&T - T-Mobile Merger Policy Brief
AT&T - T-Mobile Merger Policy Brief

More info:

Published by: Center for Media Justice on Aug 17, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

08/17/2011

pdf

text

original

 
If the purchase of T-Mobile by AT&T is approved by federal regulators, it will be a disaster for all mobile phone users—especially for people of color and low-income communities in rural and urban areas, who depend upon mobilephones for their primary access to communication and often as their only gateway to the Internet. The takeover willinevitably lead to fewer choices and higher prices for mobile service, and a loss of as many as 20,000 jobs for T-Mobileemployees, many of whom come from communities of color.
 WHAT’S AT STAKE
If the merger goes through, just two companies, AT&T and Verizon, will control nearly 80% of the mobile market in thiscountry. The loss of a low-cost wireless carrier like T-Mobile
will negatively impact communities of color.
THIS MERGER WILL COST JOBS
With unemployment still around 9% and millions of people underemployed, it’s more important than ever that weprotect as many jobs as possible.
Reality:
Unemployment remains stubbornly high, standing at 9.1% in July 2011. During this same period, theunemployment rate was 11.3% for Latin@s and 15.9% for blacks.
1
Merger Concerns:
In 2009, T-Mobile ranked among the “100 Best Companies to Work For” according
Fortune
magazine. In thatsurvey, T-Mobile was in the top 10 companies when it came to workforce diversity, reporting that 48% of its39,000 workers at that time were “minorities
 
[
 sic
].”
2
If the merger goes through, as many as 20,000 of those T-Mobile workers could lose their jobs.
3
1 Bureau of Labor Statistics, August 5, 2011, Employment Situation News Release. Retrieved August 5, 2011, from United StatesDepartment of Labor: http://www.bls.gov/news.release/pdf/empsit.pdf 2 http://money.cnn.com/magazines/fortune/bestcompanies/2009/minorities3 http://www.hu
ngtonpost.com/art-brodsky/labor-leads-netroors-and_b_883131.html
AT&T AND T-MOBILE MERGER:
A BAD DEAL FOR COMMUNITIES OF COLOR AND THE POOR
www.centerformediajustice.org
 
THIS MERGER WILL DECREASE THE AFFORDABILITY OF MOBILE SERVICE
 T-Mobile plans are more affordable than comparable plans of other carriers. Cost is a major barrier to accessing services.
Reality:
 The poverty rate reached a 15-year high in 2009, with 13.4% of the population living in poverty (below$22,050 per year for a family of four). This rate is even higher in communities of color, with 21.9% of Latin@s and 25.1%of blacks living below the poverty line.
4
Merger Concerns:
Between 2001 and 2007, the amount consumers spent on telephone service increased each year. In just sixyears, the average amount consumers spent on these services went up by nearly $200.
5
 T-Mobile plans cost $15 to $50 less per month than comparable plans from AT&T. If the merger goes through, newsubscribers will no longer have T-Mobile as a lower-cost option—which would both restrict access and allow AT&Tand all other providers to raise rates more easily.
Even current T-Mobile subscribers who migrate to AT&T plans should expect a significant price increase.
6
While AT&T has suggested that T-Mobile customers can keep their current rates as long as they stick with “comparable”devices, AT&T has not explained just how this supposed commitment will work—especially if current T-Mobilecustomers want to or are forced to upgrade their phones.
 That means roughly 15.9 million people of color who are T-Mobile customers can expect to see a price increasefor their mobile phone service if this merger is approved.
7
THIS MERGER WILL REDUCE CHOICES FOR MOBILE VOICE AND INTERNET ACCESS
 A horizontal merger—between AT&T, the second-largest mobile phone service provider in the U.S., and T-Mobile, thefourth-largest—would create a consolidated mobile phone market, with little to no meaningful competition.
Reality:
 There is already a lack of competition in the wireless market, and consumer choice is limited by lengthyservice contracts and high early-termination fees that make it difficult to switch to a new service provider.
Merger Concerns:
If the merger is approved, mobile phone users who want nationwide service or a good phone will be forced toselect from one of only three providers: AT&T, Verizon, or Sprint.
Even worse, AT&T and Verizon will control nearly 80% of the market. Neither Sprint nor other small carriers will beable to compete with AT&T or Verizon.
4 U.S. Census Bureau, 2010, Selected Characteristics of People at Speci
ed Levels of Poverty in the Past 12 Months. Retrieved June 14,2011, from U.S. Census Bureau: http://fact
nder.census.gov/servlet/STTable?_bm=y&-geo_id=01000US&-qr_name=ACS_2009_5YR_G00_S1703&-ds_name=ACS_2009_5YR_G00_5 Bureau of Labor Statistics, January 14, 2009, Consumer Expenditure Survey. Retrieved June 14, 2011, from United States Department of Labor: http://www.bls.gov/cex/cellphones2007.htm6 Blyskal, J., April 8, 2011, CR Analysis: T-Mobile Is Cheaper than AT&T. Retrieved June 7, 2011, from Consumer Reports: http://news.consumerreports.org/electronics/2011/04/cr-analysis-t-mobile-is-cheaper-than-att.html7 T-Mobile USA, February 25, 2011, T-Mobile USA Reports Fourth Quarter 2010 Results. Retrieved June 13, 2011, from T-Mobile:http://s.tmocache.com/Cms/Files/Published/0000BDF20016F5DD010312E2BDE4AE9B/5657114502E70FF3012B5A79D454F2C8/
le/TMUSQ42010PressReleaseFinalv2.pdf; Rocha, J.,2010, Mobile and Social in Hispanic America 2010. Retrieved June 7, 2011, from SlideShare: http://www.slideshare.net/jerryrocha/hispanic-mobile-and-social-networking-for-ad-tech-11410
www.centerformediajustice.org
AT&T AND T-MOBILE MERGER: A BAD DEAL FOR COMMUNITIES OF COLOR AND THE POOR

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->