After AT&T announced that it would be attempting to merge with T-Mobile in a $39 billion deal, critics immediately pounced on the United States’ largest phone provider for trying to monopolize the telecommunications industry. In recent years, AT&T has landed a deal with Apple to exclusively sell the popular iPhone and has also acquired other companies in an effort to compete with Verizon.
If Congress approves the initiative, AT&T and Verizon will have a substantial amount of control over customer options, leaving many people devoid of a choice as to whom, or how much, they pay.
The government should act as a beacon of hope for the public, but some of the players on AT&T’s team have enough heft and financial capital to take down any opponent. An article in The New York Times revealed one of the company’s many public relations campaigns deemed “Operation Cupcake” in which AT&T essentially “courts” commissioners and chairmen through the delivery of baked goods. Powerhouse AT&T lobbyist James W. Cicconi, who has spent $115 million in lobbying in six years, is perched to use his connections in a way that will only produce a positive outcome.
Those who manage government and business interests are not only individually powerful but have also developed invaluable networking skills, something consumers can’t compete with. Despite good intentions, a politician can be easily swayed by a “tit for tat” proposition.
It’s likely that the merger will be approved not on the basis of its validity but because of extraneous reasons heralded by the power of a billion dollar corporation. AT&T certainly has the right to strive for otherwise unattainable profits but shouldn’t be unchecked, especially when it comes to the monopolization of the industry.
While there are perks to the potential deal, such as how places that would otherwise not have access to wireless coverage would now have it, it would be wiser to ensure the merger doesn’t happen. Americans are already having financial difficulties and shouldn’t be backed into a corner, which could very well happen with only two nationwide phone carriers. While it may appear to be a good decision on the basis of strengthening the cellular market and ensuring everyone has access to technology, it’s never good to have all your eggs in one basket.
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