Monday, May 30, 2011

COMPTEL Weighs In Against AT&T + T-Mobile Deal

AT&T's proposed acquisition of T-Mobile would not serve the public interest and should be blocked by regulators, according to COMPTEL, an industry organization representing competitive carriers and their suppliers.

In a filing with the FCC, COMPTEL argues that the deal would create a significant increase in horizontal market concentration in the mobile telephony/broadband services market by reducing the number of national competitors from four to three, increasing AT&T's market share from 32 percent to 43 percent and vesting control of more than 77 percent of the wireless lines in service in two carriers -- AT&T and Verizon Wireless. As the sole, national GSM operator, other regional carriers would have no choice but to secure roaming agreements with AT&T. The mega-carrier would also be in a position to control access to backhaul facilities in many markets, according to COMPTEL, and this could lead to exorbitant prices for special access services.


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