Seven States Join DOJ in Suit Against AT&T

WASHINGTON, D.C. — On Friday, the Department of Justice (DOJ) gained the support of seven state attorneys general in their efforts to block the AT&T/T-Mobile merger. Attorneys general from New York, Washington, California, Illinois, Massachusetts, Ohio and Pennsylvania, representing more than one-third of the American population, signed on.

Parul P. Desai, policy counsel for Consumers Union, said, “The addition of these seven states to the DOJ’s suit against AT&T only reinforces the seriousness of the consequences that a combined AT&T/T-Mobile would have on consumers. These attorneys general have reviewed the proposed merger between AT&T and T-Mobile and come to the same conclusion we have – that it means higher prices and fewer choices. At a time when American families simply can’t afford to pay more for their wireless service, there is no room for a merger that would put 4 out of 5 national wireless contracts in the hands of two mega-companies.”

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.

Contacts:
David Butler, Consumers Union, 202.462.6262 or dbutler@consumer.org
Kara Kelber, Consumers Union, 202.462.6262 or kkelber@consumer.org

About Consumer Reports

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.