Key senator opposes AT&T $39B purchase of T-Mobile
July 20, 2011 By JOELLE TESSLER , AP Technology Writer
(AP) -- A key member of the Senate Judiciary Committee is calling on federal regulators to block AT&T's proposed $39 billion purchase of T-Mobile USA.
Herb Kohl, a Wisconsin Democrat, is chairman of the Senate Judiciary subcommittee that handles antitrust matters. He says the transaction would lead to higher prices and fewer choices for consumers by leaving just three national wireless carriers. He notes that two of those carriers - AT&T and Verizon Wireless - would control nearly 80 percent of the market.
He says that by eliminating T-Mobile, the merger would remove the one carrier offering less expensive prices and rate plans.
Thus, he says, the acquisition "would likely cause substantial harm to competition and consumers."
Kohl sent a letter to the Justice Department and the Federal Communication Commission on Wednesday.
©2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Urban Dictionary has a pretty good take on it:
Jul 21, 2011
Rank: not rated yet
What could be bad about only 1 company owning all land line and a majority of cellphone services in the nation, buying up any provider that offers services for less than they do. Interesting method of price control eh?
Unregulated Free market at work Means we will have a few very large companies running everything, buying up or otherwise forcing any and all competition out of the market.
(Huzzah to Herb Kohl for taking a stand!)