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Release date 05/11/2011
WASHINGTON, DC — The first Congressional review of AT&T’s proposed acquisition of T-Mobile will begin today with a hearing held by the Senate Judiciary Committee’s Antitrust Subcommittee. Representatives from AT&T, T-Mobile, Sprint, Cellular South, Public Knowledge and Communications Workers of America are scheduled to testify.
Parul P. Desai, policy counsel for Consumers Union said, “This hearing provides the opportunity for lawmakers to ask the important questions that have been left unanswered. The implications of this merger will affect all wireless consumers, not just AT&T and T-Mobile customers. We are concerned that this proposal really means higher prices with fewer choices nationwide. AT&T wireless plans typically cost consumers up to $50 more per month than comparable plans from T-Mobile, and consumers are consistently less satisfied with the service they get from AT&T than T-Mobile. In a market already dominated with complaints of poor service and high prices, it’s hard to see how eliminating one of the few low-cost carriers is in the public’s interest. We urge members of the Committee to demand answers on how this deal would impact consumers and the wireless market.”
A recent price analysis of the voice and data plans available from AT&T and T-Mobile released by Consumers Union demonstrates that T-Mobile wireless plans typically cost $15 to $50 less per month than comparable plans from AT&T. In addition, the most recent cell-phone satisfaction survey by the Consumer Reports National Research Center shows that AT&T got lower marks than T-Mobile on almost every attribute rated, suggesting the proposed merger would be a setback to T-Mobile customers if it lead to service more resembling AT&T’s than T-Mobile’s.
“For years we have advocated for reform on a number of wireless issues, including interoperability and access to broadband infrastructure, in order to boost competition in the wireless market. These issues should be addressed to improve competition in the wireless marketplace before the government rules on this acquisition, and we hope that these issues are examined in the hearing.”
The hearing is scheduled for 10:15AM. For more information on the hearing, visit www.judiciary.senate.gov.
Contacts:
David Butler, Consumers Union, 202.462.6262 or dbutler@consumer.org
Kara Kelber, Consumers Union, 202.462.6262 or kkelber@consumer.org
Consumer Reports is a nonprofit membership organization that works side by side with consumers to create a fairer, safer, and healthier world. For 80 years, CR has provided evidence-based product testing and ratings, rigorous research, hard-hitting investigative journalism, public education, and steadfast policy action on behalf of consumers’ interests. Unconstrained by advertising or other commercial influences, CR has exposed landmark public health and safety issues and strives to be a catalyst for pro-consumer changes in the marketplace. From championing responsible auto safety standards, to winning food and water protections, to enhancing healthcare quality, to fighting back against predatory lenders in the financial markets, Consumer Reports has always been on the front lines, raising the voices of consumers.
© 2011 Consumer Reports. The material above is intended for legitimate news entities only; it may not be used for advertising or promotional purposes. Consumer Reports® is an expert, independent, nonprofit organization whose mission is to work side by side with consumers to create a fairer, safer, and healthier world. We accept no advertising and pay for all the products we test. We are not beholden to any commercial interest. Our income is derived from the sale of Consumer Reports® magazine, ConsumerReports.org® and our other publications and information products, services, fees, and noncommercial contributions and grants. Our Ratings and reports are intended solely for the use of our readers. Neither the Ratings nor the reports may be used in advertising or for any other commercial purpose without our prior written permission. Consumer Reports will take all steps open to it to prevent unauthorized commercial use of its content and trademarks.
Consumer Reports is a nonprofit membership organization that works side by side with consumers to create a fairer, safer, and healthier world. For 80 years, CR has provided evidence-based product testing and ratings, rigorous research, hard-hitting investigative journalism, public education, and steadfast policy action on behalf of consumers’ interests. Unconstrained by advertising or other commercial influences, CR has exposed landmark public health and safety issues and strives to be a catalyst for pro-consumer changes in the marketplace. From championing responsible auto safety standards, to winning food and water protections, to enhancing healthcare quality, to fighting back against predatory lenders in the financial markets, Consumer Reports has always been on the front lines, raising the voices of consumers.
© 2011 Consumer Reports. The material above is intended for legitimate news entities only; it may not be used for advertising or promotional purposes. Consumer Reports® is an expert, independent, nonprofit organization whose mission is to work side by side with consumers to create a fairer, safer, and healthier world. We accept no advertising and pay for all the products we test. We are not beholden to any commercial interest. Our income is derived from the sale of Consumer Reports® magazine, ConsumerReports.org® and our other publications and information products, services, fees, and noncommercial contributions and grants. Our Ratings and reports are intended solely for the use of our readers. Neither the Ratings nor the reports may be used in advertising or for any other commercial purpose without our prior written permission. Consumer Reports will take all steps open to it to prevent unauthorized commercial use of its content and trademarks.