James Delahunty
5 Aug 2011 13:24
Two senators write letter pushing regulators to approve the buyout.
Republican senators Mike Lee (Utah) and John Cornyn (Texas) have written a letter to the Federal Communications Commission (FCC) and the Department of Justice (DoJ) urging them to approve AT&T's proposed buyout of T-Mobile. The proposed deal would be worth about $39 billion, and would consolidate 80 percent of all U.S. mobile users under just two carriers; the new combined AT&T/T-Mobile and Verizon Wireless.
Lawmakers and consumer groups alike have lashed out at the proposed merger, saying the decrease in competition will result in higher prices for customers. Proponents of the merger say it will enable AT&T to roll-out a next generation 4G network faster.
Both Senators Mike Lee and John Cornyn are two of three Republicans on the United States Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights.
Democratic Senator Herb Kohl (Wisconsin) acts as chairman of the subcommittee, and has previously urged the authorities to block the deal on the ground that it would be bad for consumers and would harm competition. Lee and Cornyn's letter urges the FCC and DoJ to focus on the possible benefits too before making a decision.
"The testimony and materials presented to the Antitrust Subcommittee highlight potential benefits to consumers that deserve meaningful attention," they said in their letter. Lawmakers can only serve to sway public opinion on the merger, whereas the FCC and DoJ have the power to approve it to block it outright.