Press Release
AT&T/Bell South Merger Is Bad for Consumers
Contact: Timothy Karr, 201-533-8838
WASHINGTON - In response to the proposed $67 billion purchase of Bell South by AT&T, Free Press Policy Director Ben Scott issued the following statement:
"AT&T's move to acquire Bell South, if approved, would be a major blow to the endangered American ideal of competition and choice in the marketplace. Coming on the heels of AT&T's merger with SBC and Verizon's acquisition of MCI, this new marriage is terrible news for consumers.
"Concentrated ownership of the nation's digital networks eliminates any real chance of vigorous competition or innovation and lower prices for consumers. At best, the new network giants in telecommunications will square off against the cable behemoths - a cozy cartel of two companies in each market divvying up the profits from telephone, broadband and video services.
"The merger, if permitted, would be an ironic and disastrous twist in the history of federal telecom policymaking. In 1984 and 1996, Congress broke up the telecommunications monopolies to enhance competition and innovation. In exchange, the industry received dramatic loosening of consumer protections in rates and quality of service.
"Now the telecom monopoly is being reconstituted, but the consumer protections we swapped for competition have not returned with the network giants. This proposed merger represents a giant leap backward -- trading a regulated monopoly in telephone service for an unregulated duopoly in telephone, broadband, and video.
"At a moment marked by a precipitous American decline in the ranks of the world's broadband leaders, the Justice Department, the FCC, and Congress should act swiftly to correct our problems - not exacerbate them. This merger must be stopped."
"AT&T's move to acquire Bell South, if approved, would be a major blow to the endangered American ideal of competition and choice in the marketplace. Coming on the heels of AT&T's merger with SBC and Verizon's acquisition of MCI, this new marriage is terrible news for consumers.
"Concentrated ownership of the nation's digital networks eliminates any real chance of vigorous competition or innovation and lower prices for consumers. At best, the new network giants in telecommunications will square off against the cable behemoths - a cozy cartel of two companies in each market divvying up the profits from telephone, broadband and video services.
"The merger, if permitted, would be an ironic and disastrous twist in the history of federal telecom policymaking. In 1984 and 1996, Congress broke up the telecommunications monopolies to enhance competition and innovation. In exchange, the industry received dramatic loosening of consumer protections in rates and quality of service.
"Now the telecom monopoly is being reconstituted, but the consumer protections we swapped for competition have not returned with the network giants. This proposed merger represents a giant leap backward -- trading a regulated monopoly in telephone service for an unregulated duopoly in telephone, broadband, and video.
"At a moment marked by a precipitous American decline in the ranks of the world's broadband leaders, the Justice Department, the FCC, and Congress should act swiftly to correct our problems - not exacerbate them. This merger must be stopped."
