Accidentally disclosed AT&T memo reveals true reason for proposed merger with T-Mobile

August 16, 2011 | By | 2 Replies More

See this analysis regarding an AT&T memo that shoots down AT&T publicly stated reasons for the merger it proposes with T-Mobile.

Free Press has distributed a mass emailing that summarizes the true reasons for the proposed merger:

AT&T’s plan to take over T-Mobile is about gouging consumers, destroying a competitor and firing an estimated 20,000 American workers.

More here from Free Press, as reported by Planet Unfiltered:

“We now know the truth: AT&T is willing to pay a $39 billion premium for one reason and one reason only — to kill off the competition,” Free Press CEO [Craig Aaron] said in a statement. “It would cost AT&T one-tenth of the merger’s cost to expand its network than to buy up T-Mobile. Yet AT&T is willing to pay a 900-percent markup to take out a lower-priced competitor and make sure it can lock in and gouge consumers in the future. The only thing stopping AT&T from expanding its network is greed. One plus one does not equal three, but subtracting one competitor adds up to billions in profits for AT&T and thousands of Americans out of work.”

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About the Author ()

Erich Vieth is an attorney focusing on consumer law litigation and appellate practice. He is also a working musician and a writer, having founded Dangerous Intersection in 2006. Erich lives in the Shaw Neighborhood of St. Louis, Missouri, where he lives half-time with his two extraordinary daughters.

Comments (2)

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  1. Erich Vieth says:

    This is a no-brainer. I’m glad to see the states starting to join with the Department of Justice to oppose the AT&T – T-Mobile proposed merger. Free Press reports:

    On Friday seven state attorneys general joined the Department of Justice lawsuit 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.

    Free Press President Craig Aaron made the following statement:

    “We applaud the attorneys general who joined the Justice Department’s suit today to block AT&T’s takeover of T-Mobile. They deserve praise for standing up to AT&T and standing with their citizens. They understand that families can’t afford to shoulder the burden of higher bills that would result from the merger, and that states struggling with unemployment can’t afford to stand aside while corporations kill competition and put people out of work. This lawsuit is yet another blow to AT&T and a victory for the public.

    “AT&T’s propaganda and political posturing aren’t working in the face of such overwhelming opposition and evidence against this deal. Both the attorneys general and the Justice Department examined the facts of the case, and the facts are clear: This merger will raise prices, kill competition and put thousands of Americans out of work at a time of skyrocketing unemployment.”

  2. Erich Vieth says:

    Corruption in action, based on this report from Bloomberg:

    “Representative Pete Olson and 99 fellow House Republicans signed a letter yesterday urging the Obama administration to resolve a government lawsuit and let AT&T Inc. (T) buy T-Mobile USA Inc. All but one of the 100 lawmakers has received political donations from AT&T employees since 2009, according to a Bloomberg review of campaign finance records. The letter signers took in $963,275, Art Brodsky, a spokesman for Washington-based advocacy group Public Knowledge, said in an e-mail.”

    http://www.bloomberg.com/news/2011-09-21/at-t-gave-963-275-to-lawmakers-urging-u-s-approval-of-t-mobile-purchase.html

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