WASHINGTON, DC — On Wednesday, the Department of Justice filed an antitrust lawsuit aiming to block the proposed merger of AT&T and T-Mobile. The complaint points to substantial concerns regarding marketplace competition and the elimination of T-Mobile as a low-cost option.
Parul P. Desai, policy counsel for Consumers Union, said “This announcement is something for consumers to celebrate. We have consistently warned that eliminating T-Mobile as a low-cost option will raise prices, lower choices, and turn the cellular market into a duopoly controlled by AT&T and Verizon. The lawsuit filed by DOJ today proves that it has serious concerns and believes the best way to protect millions of consumers nationwide is by blocking the merger. We will continue to work with policy makers to ensure competition remains strong and in the best interest of consumers.”
A recent price analysis survey 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.
Contact:
Kara Kelber, Consumers Union, 202.462.6262 or kkelber@consumer.org
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© 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,
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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.
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