Walden pledges deliberative approach to AT&T merger

“Moving on to a lighter topic—mergers.  As you know the AT&T/T-Mobile merger is pending.  Proponents say the merger is necessary to deploy 4G mobile broadband service to all Americans as called for in the FCC’s broadband plan and, more particularly, to rural America.  Opponents have likened the proposal as step on the way back to the Ma Bell monopoly of the 1970s.  Proponents claim there are plenty of competitors in the marketplace, pointing to Sprint, Clearwire, LightSquared, US Cellular, and the other smaller, regional wireless carriers all providing mobile broadband services.  Opponents say that if 80% of wireless customers receive service from AT&T or Verizon, the national market will become a duopoly.  Proponents say T-Mobile won’t survive financially without the merger.  Opponents say they will not survive with it.  I do not pretend to know the future, but I do know this:  It is far too soon to judge the merits of this merger. I will wait for the record to be complete and the evidence to come in before making up my mind.

“As you know Congress has no direct say in the matter.  The Department of Justice and the FCC will make the decision as to whether to allow the merger, and if so, under what conditions.  Nevertheless, my committee will hold a hearing on the merger at some point in the next few months.  I will address two of my concerns:

“First, America’s economic growth and vitality is dependent on competitive and innovative free markets.  I am thus interested in learning whether the merger promotes competition for consumers and encourages innovation in the technology manufacturing sector.  If not, it may lead the industry further into the watering hole of government regulation.

“Second, I am concerned about the ‘public interest’ conditions the FCC might place on the merger if approved.  Conditions placed on any merger should be limited to those conditions necessary to address risks to consumers that arise as a direct result of the merger.  Mergers should not be used to impose conditions that are better suited for generic proceedings where all industry and consumer groups have an equal opportunity to weigh in.

“The merger between AT&T and T-Mobile is historic in scope and potential impacts and needs to be carefully, fairly and expeditiously considered by the DOJ and the FCC.  I look forward to participating in that discussion.”