Press Release
New Jobs Study Confirms AT&T–T-Mobile Merger Would Put Thousands on the Unemployment Line
Contact: Timothy Karr, 201-533-8838
WASHINGTON -- In the wake of the Department of Justice’s lawsuit to block the AT&T–T-Mobile merger, Charles River Associates today released a study of the impact the merger would have on jobs. The study confirmed Free Press’ assertion that combining AT&T and T-Mobile would kill thousands of American jobs.
The study, conducted by University of California-Irvine Professor David Neumark, a respected economist, and commissioned by Sprint, debunks AT&T’s claims that the deal would create jobs. Those claims were based on the false premise that this merger would increase investment in the wireless market, when in fact AT&T itself told Wall Street to expect investment to decline by at least $10 billion over the coming years.
Free Press Research Director S. Derek Turner made the following statement:
"Thankfully the facts have trumped AT&T's expensive corporate spin. Yesterday the Justice Department confirmed AT&T's takeover of T-Mobile would be a disaster for competition. And now we have Professor Neumark's study confirming the obvious: AT&T's takeover of T-Mobile would also kill jobs, and leave thousands of Americans families in jeopardy in this horrible economic climate.
"The finding that AT&T's takeover of T-Mobile would kill jobs should come as no surprise — Ma Cell has made false promises about job creation before. But the fact that it's put nearly 100,000 Americans out of work over the last decade is evidence that it doesn't deliver on its claims. Don’t forget that in 2004 AT&T moved to slash thousands of jobs just one month after its merger with Cingular was approved, in large part due to its promise to protect and expand jobs in the merged company.
“Professor Neumark’s study is further evidence that no matter what promises it makes to secure approval for the merger, AT&T will most likely put thousands of Americans out of work and on the unemployment line if it is allowed to acquire T-Mobile.
“The Federal Communications Commission should join the Department of Justice and reject this job-killing deal so it can focus on creating policies that increase competition and consumer choice in our already concentrated wireless market."
The study, conducted by University of California-Irvine Professor David Neumark, a respected economist, and commissioned by Sprint, debunks AT&T’s claims that the deal would create jobs. Those claims were based on the false premise that this merger would increase investment in the wireless market, when in fact AT&T itself told Wall Street to expect investment to decline by at least $10 billion over the coming years.
Free Press Research Director S. Derek Turner made the following statement:
"Thankfully the facts have trumped AT&T's expensive corporate spin. Yesterday the Justice Department confirmed AT&T's takeover of T-Mobile would be a disaster for competition. And now we have Professor Neumark's study confirming the obvious: AT&T's takeover of T-Mobile would also kill jobs, and leave thousands of Americans families in jeopardy in this horrible economic climate.
"The finding that AT&T's takeover of T-Mobile would kill jobs should come as no surprise — Ma Cell has made false promises about job creation before. But the fact that it's put nearly 100,000 Americans out of work over the last decade is evidence that it doesn't deliver on its claims. Don’t forget that in 2004 AT&T moved to slash thousands of jobs just one month after its merger with Cingular was approved, in large part due to its promise to protect and expand jobs in the merged company.
“Professor Neumark’s study is further evidence that no matter what promises it makes to secure approval for the merger, AT&T will most likely put thousands of Americans out of work and on the unemployment line if it is allowed to acquire T-Mobile.
“The Federal Communications Commission should join the Department of Justice and reject this job-killing deal so it can focus on creating policies that increase competition and consumer choice in our already concentrated wireless market."
