Both Republicans and Democrats Give Skeptical Remarks to the AT&T Deal

Lawmakers from either side of the table have shown extreme skeptical remarks on Thursday, over the proposed acquisition of T-Mobile USA by AT&T, as they suspect this deal will not be able to deliver the consumer benefits the wireless company has promised. This is a very controversial deal due to the extreme criticism it facing since many believe that it will further reduce the number of wireless carriers in competition. Moreover, many critics also have also showed concern that this deal will result in loss of discount carrier T-Mobile, which might consequently cause higher prices for its consumers.

The chairman of AT&T pictured the proposal as a transaction which will extend the reach of the company in countryside and other underserved areas. He said that "It's about achieving this with private capital," while addressing the U.S. House of Representatives' subcommittee on intellectual property, competition and the Internet. "We continue to invest at a very aggressive pace.” AT&T first announced in March, 2011 that it has plans to but T-Mobile USA from Deutsche Telekom AG for the amount of $39 billion, and if this deal is approved by the committee, it will accumulate a total of 80% of U.S. wireless contract customers in just two companies: AT&T/T-Mobile and Verizon Wireless. Verizon Wireless is currently number one wireless company of U.S., but if AT&T scores this deal, it will rise from its current number two position and take the lead as the leader of U.S. mobile carrier market.

Majority of the lawmakers despite not having any direct relation with the case have shown extremely pessimistic remarks of this deal. A representative of Virginia Republican stated that "There are legitimate questions about whether this merger could move this market past the anti-competitive tipping point."

Before being put into practice, this deal must first be approved by the Department of Justice and Federal Communications Commission, which is a process that can talk as long as a year. Mel Watt, a representative Democrat from North Carolina, expressed his concern regarding the impact of having the monopoly of the market with only three major carriers remain, which could be worsened if handsets, like the iPhone, were only made available with those market leaders.

Another Michigan Democrat Representative, John Conyers, also dismissed the argument of AT&T, he stated that "Everything that we're talking about that's so great from this merger is really already accomplishable," asserting that "I see absolutely no redeeming reason for this merger."