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NY Attorney General afraid AT&T, T-Mobile merger will increase prices

Updated Dec 19th, 2018 7:08PM EST
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The New York State Attorney General’s office on Tuesday announced that it plans to conduct a thorough review of AT&T’s proposed T-Mobile USA acquisition. The $39 billion deal would reposition AT&T as the nation’s top wireless carrier, though the merger is already being met with substantial opposition. Attorney General Eric Schneiderman may soon be the latest on the list of those opposed to the deal, for fear that the union may drive up wireless service costs for New York residents. “Cell phones are no longer a luxury for a few among us, but a basic necessity. The last thing New Yorkers need during these difficult economic times is to see cell phone prices rise,” said Schneiderman in a statement. “Affordable wireless service and technology, including smart phones and next generation handheld devices, are the bridge to the digital broadband future. We want to ensure all New Yorkers benefit from these important innovations that improve lives.” Hit the jump for the full press release.

A.G. SCHNEIDERMAN TO UNDERTAKE THOROUGH REVIEW OF AT&T, T-MOBILE MERGER

Attorney General to Analyze the Largest Wireless Merger in History for Potential Anti-Competitive Impacts on Consumers and Businesses

Schneiderman: My Office Will Ensure New York Consumers are Protected; Merger Must Not Reduce Access to Low-Cost Options and Newest Broadband-Based Technologies

NEW YORK – Attorney General Eric Schneiderman today announced that his office will undertake a thorough review of AT&T’s acquisition of T-Mobile. The proposed merger would create the nation’s largest wireless company with a total of 130 million subscribers nationwide, opening the door to a near duopoly shared by the merged firm and Verizon.  The Attorney General will analyze the merger for potential anti-competitive impacts on consumers and businesses across New York State.

T-Mobile, a subsidiary of Deutsche Telekom, is a low-cost provider of choice for millions of New Yorkers and currently has 34 million customers nationwide, making it the fourth-largest wireless company in the country. The proposed merger could start a process of consolidation that would lead to two firms – AT&T and Verizon – controlling nearly 80% of wireless subscribers nationwide and dominating the U.S. wireless business.

“Cell phones are no longer a luxury for a few among us, but a basic necessity. The last thing New Yorkers need during these difficult economic times is to see cell phone prices rise,” said Attorney General Schneiderman. “Affordable wireless service and technology, including smart phones and next generation handheld devices, are the bridge to the digital broadband future. We want to ensure all New Yorkers benefit from these important innovations that improve lives.”

Attorney General Schneiderman stressed that some market conditions may differ across the state and highlighted the potential impact of the merger in areas like Rochester, Albany, Buffalo and Syracuse, where there are already fewer wireless options. He is also concerned about the impact on consumers throughout the state, where T-Mobile is a low-cost option. In announcing his review, Schneiderman noted that the impact of the merger is likely to be felt statewide, and that the review will therefore examine all aspects of the likely impact of the merger on consumers and businesses in all affected areas throughout New York.

Attorney General Schneiderman stressed that he will closely scrutinize AT&T’s argument that the merger has the potential to produce some benefits, such as expanding the coverage of AT&T’s next generation broadband wireless network to rural areas in upstate New York that are underserved and have poor wired broadband connectivity. Supporters argue that the merger might improve broadband service for T-Mobile customers by fulfilling some of their spectrum needs through access to AT&T’s advanced network. The Attorney General’s review will weigh the benefits to New Yorkers against the anti-competitive risks posed to them.

Zach Epstein
Zach Epstein Executive Editor

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content. Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment.

His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.