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Timothy Karr

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Throw Your Smartphone Down the Rabbit Hole

Posted: 05/04/11 09:56 AM ET

Do you believe in fairy tales?

AT&T wants you to. The phone giant is trying to make everyone believe that its takeover of T-Mobile would be good for jobs, innovation and the economy, while saving you hundreds of dollars on your smartphone.

The opposite is true. But that didn't stop AT&T from making these claims in a 381-page FCC filing that was so filled with half-truths and fantasies that the Los Angeles Times said it came from Alice in Wonderland.

"The wireless marketplace will be more competitive," AT&T claims in the filing. For those keeping score, the phone company is actually saying that consumers will gain more choice among mobile phone carriers by subtracting T-Mobile from your options.

Gobbling up T-Mobile's 34 million users and absorbing their workforce will "create new jobs and economic growth," AT&T adds. Never mind the tens of thousands of T-Mobile technicians, customer-service reps and storefront salespeople to be "made redundant" soon after the deal goes through.

Such AT&T mythmaking is part of its shameless campaign to convince Washington that the takeover of T-Mobile would be harmless.

It's now left to Congress, the FCC and the Department of Justice to sort fact from fiction and decide whether the runaway consolidation of America's mobile phone sector is in the interest of the American people.

AT&T has already hired an army of lobbyists to make its case. Next Wednesday, they're marching before the Senate Antitrust Subcommittee to woo support for this disastrous deal from our elected officials -- many of whom receive handsome campaign contributions from... that's right... AT&T.

The Los Angeles Times is not alone in its appraisal of the deal. The word from Wall Street to Main Street is that allowing such runaway consolidation of the mobile sector is pure craziness. T-Mobile customers, who stand to have AT&T jack up their rates more than 20 percent are already raising a stink at the FCC, which recently opened a docket for the public to comment on the proposed merger.

The truth is that consolidation of the scale being proposed by AT&T resembles the old railroad and oil trusts of the 19th century. It seems unthinkable to suggest that turning one of the economy's most innovative and important sectors into Standard Oil would be good for any of us. But that's pretty much how AT&T adds things up.

And with tens of millions of Americans relying on smarter iPhones, Android systems and Blackberry's to do what we want to do, go where we want to go, and say what we want to say, the impact of this merger would be felt dearly.

So should it be left to Washington and one exceedingly powerful company to decide the fate of our communications? (If you're thinking "no," you can help stop this merger by contacting the members of the Antitrust Subcommittee and urging them to grill AT&T next Wednesday.)

If Congress, the FCC and Department of Justice hear from enough people like you and me, they can muster the courage to ask the right questions of AT&T.

Next Wednesday's hearing on the Hill is our first chance to expose this merger for the nightmare that it is, and save our smartphones from following AT&T down the rabbit hole.

 

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HUFFPOST SUPER USER
Jake Thomas
elastic
11:55 PM on 05/04/2011
Eliminating competition does not stimulate innovation or lower prices. This is how we end up shipping jobs and opportunities overseas.
This user has chosen to opt out of the Badges program
08:16 PM on 05/04/2011
Is there any limit to how big a company is allowed to get? What is the official definition of "too big to fail"?
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HUFFPOST SUPER USER
muziker
10:25 PM on 05/04/2011
I thinbk the new term is "too big to be fair."
HUFFPOST SUPER USER
pjlim
07:55 PM on 05/04/2011
IO have never, ever dealt with such rude and aggressive customer service as I have from AT&T. Five minutes after paying your monthly bill, they start texting you for permission to take next months bill out of your account. Then they call, then text again and again until you give them a date. Their latest stunt was to insert a message into one of my texts so that when i pressed send it would give them permission to deduct money from my account. That was the last straw! I checked on-line and found about 10,000 complaints similar to mine. We all have iphones, so we are stuck...
05:44 PM on 05/04/2011
Ugh! I agree, but I don't want to give up T-Mobile and I want an iPhone!
05:33 PM on 05/04/2011
How much you want to bet Washington sides with corporate american cause they are all corporate wh0res.
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HUFFPOST SUPER USER
TimeMaster
I see A, You see B, C is Correct
07:46 PM on 05/05/2011
I can't wait to see the Congressional hearings on this one as their will probably be one or more members of the House or Senate slobbering praise all over the place on this deal. It's a shame that Democracy is so easily bought & sold in this country. No justice for anyone as a consumer, as witness to the depraved behavior that they are showing against the Consumer Protection Agency and Elizabeth Warren.
05:09 PM on 05/04/2011
I still hope that the merger will not be approved. AT&T already said that they hope to "upgrade" most T-Mobile customers. That is the last thing I want. Being hearing impaired, I have a cell phone with a good loudspeaker with T-Mobile for emergency use only. After becoming a Gold Rewards customer, this cost me $10 for 30 minutes good for a year, since I rarely use the phone. AT&T never did offer a comparable rate.
They want to take customers to the cleaners and have no use for people like me who want emergency contact capability.
05:34 PM on 05/04/2011
Then email them on the link above.
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califgrrrl
my micro-bio is stuffed to bursting...
03:27 AM on 05/05/2011
Any working cellphone can call 911 for free without an account.
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HUFFPOST SUPER USER
constantcomments
Keep your hands off my bedroom slippers
03:38 PM on 05/04/2011
All of this buying an selling of corporations can not be good for anyone but them. I remember when I had AT&T as my phone company, then it became Qwest. had AT&T as my cable company and then they sold to Comcast. Then I got an AT&T cell phone but I got disgusted with the rude customer service people and lack of support so I switched to TMobile. When they officially take over I am cancelling TMobile.
03:17 PM on 05/04/2011
It soon will not make any difference what the FCC wishes. Republicans are attempting to do away with the power of the FCC. They don't want their business buddies to have any regulations what so ever. The Republicans do not care what the people wish only the wishes of big business who line their pockets.
It would not surprise me if the Republicans did away with FEMA or like organizations since these government agencies do not help big business but helps the people in need such as the people who lost everything in the recent tornadoes that hit Alabama and the South.
The people who keep putting Republicans back in office do not have brains enough to blow their on noses while helping the Republicans to get rich and screw the public. When are these people going to open their eyes and see the truth?
05:36 PM on 05/04/2011
When people stop voting for the two issues the GOP stands for, anti-abortion and gay marriage. Their followers vote based on these issues. It's a good scam the GOP figured out long ago.
HUFFPOST COMMUNITY MODERATOR
Adirondacker
02:14 AM on 05/05/2011
and it is a scam since they never do anything significant about either issue.
HUFFPOST SUPER USER
bigbubba90210
01:54 AM on 05/05/2011
When they start breathing through their noses.
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02:22 PM on 05/04/2011
I already have scars from AT&T fee gouging. It looks to only get worse...
01:34 PM on 05/04/2011
I feel that I have been overcharged,under serviced and in general cheated by ATT for 50 years.

I would not believe anything coming from ATT or anyone associated with them in any way.
12:38 PM on 05/04/2011
I am a former AT&T Wireless employee who lost my job as a result of redundancy with the Cingular Wireless merger. I am currently a TMobile customer who despite less coverage, chose TMobile for their customer service. AT&T Wireless is consistently ranked lowest in customer satisfaction among wireless carriers. I will not be a wireless customer who will pay an increased rate to have service with AT&T Wireless. Even if I incur a cost for cancelling a contract early, I will pay the fee.
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HUFFPOST SUPER USER
Barbara Graham
Comin at u from Area 5150
01:29 PM on 05/04/2011
I dropped Cingular service when AT&T bought them. I'd had a horrible experience with AT&T's wireless broadband program in the past, lousy service and idiot phone reps who had no idea what I was talking about.

And now this. They're trying to eat T-Mobile. This is getting darn close to a monopoly. AT&T needs to get a good yank on the choke chain. Once we get the choke chain in place, of course.

Guess I'm going to have to find a new plan. T-Mobile will have to go. I will not deal with AT&T, ever, the end.
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JWerner
Beware Macduff; beware the thane of Fife!
11:59 PM on 05/04/2011
It's quite likely that trying to restrain AT&T at this point is like trying to restrain Fenrir the Wolf, of Norse mythology. Very few things capable of doing it.
HUFFPOST SUPER USER
bigbubba90210
02:02 AM on 05/05/2011
Being left with one GSM carrier *is* a monopoly.
05:37 PM on 05/04/2011
AT&T's land line service has sucked for years also.
12:03 PM on 05/04/2011
The consolidation in this industry - which is already marked by vibrant competition and innovation - is normal and good. It will help AT&T roll out LTE and other services for consumers. And direct competitors, as well as adjacent competitors, will respond, too.

We've seen this happen before, and it benefited consumers as well - the consolidation after the '96 Telecom Act. Without these companies conjoining then, we would like not have seen such a robust competitive response from intermodal competitors like cable. And, lacking that dynamic, we'd probably still be waiting for the broadband Internet today.
03:02 PM on 05/04/2011
AT&T will eventually have to merge with Verizon after they have fully rolled out their LTE network to have an LTE network . That is how pathetic AT&T is . Unless it can buyout competitors with better rates & customer service they just can't compete . They can bundle their government given landline business & lobby . Oh and they can pay 2.5 billion in dividends in the 1st quarter but can't seem to invest in its bloated inefficient network . Do you know how many iPhone customers will switch to Verizon when their AT&T contract is up ?
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JWerner
Beware Macduff; beware the thane of Fife!
12:02 AM on 05/05/2011
Heh, that post sounds like an argument direct from AT&T's PR agency.
11:46 AM on 05/04/2011
Yeah AT&T is so shameless I would actually find it humorous if I wasn't a TMO customer . Thanks for your great service Michelle : ) When the presidents chief of staff is the ex top lobbyist for AT&T and the man who broke up AT&T is now a lobbyist for AT&T it is hard to imagine this merger getting overturned.I read a point that someone else made that I thought was spot on . If AT&T didn't have their landline business that the government handed them and used that to bundle in with their wireless service could they even compete ? The reason I bring that up is I keep reading people say that the government should not get involved . AT&T is pretty much government created right ? This just really stinks . I don't feel I should have to pay more for my services because AT&T gets this power grab handed to them . They are paying twice as much as TMO is worth . Where was AT&T when I was trying to unload my Fiero ? They have more spectrum than anyone . They just have a lame network which actually could wind up getting worse with TMO's customers added .
10:54 AM on 05/04/2011
This is actually old news. I started to notice 8 or 9 years ago that whenever a corporation talked about "competition" it had nothing to do with pricing, or choice, or consumers and everything to do with profits. More competition, to them, means more profit, which again to them, means they are more "competitive" as a company.

Now obviously, to normal people the logic of this fails instantly. It's like saying an olympic runner would be "improving competition" by intentionally injuring the other runners. And if you asked them how getting rid of the other runners means "improving competition" they respond with, "Well, if we eliminate the runners who qualified but have the lowest times, then not only does our time seem that much better, those that are left are all closer together and therefore it is more "competitive" a race.

This only works if they can prove that eliminating other businesses would increase jobs, increase choices for customers, increase competition in the MARKETPLACE, and therefore improve service/price/options/features/etc for customers. This makes no sense at all.

Honestly, the thing that pisses me off the most isn't the corporate arrogance, that is to be expected. What pisses me off is that groups like the FCC let them get away with it every single time.
10:42 AM on 05/04/2011
Judge Green is spinning in his grave!
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PCMartin
Bullish on cat food and refrigerator boxes
03:51 PM on 05/04/2011
"Judge [Harold H.] Greene presided over United States v. AT&T, the antitrust suit that broke up the AT&T vertical market monopoly on the telecommunications industry in the United States."

Harold H. Greene - Wikipedia, the free encyclopedia
https://secure.wikimedia.org/wikipedia/en/wiki/Harold_H._Greene
- OR -
http://goo.gl/rS3ft