Blocking the merger is the best interest of the companies Google and Facebook. Lobbying on the AT&T T-Mobile deal has already begun and two of the strongest players Google and Facebook are not approving the deal. The Computer & Communications Industry Association, which includes big Silicon Valley Internet companies such as Google Inc. and Facebook Inc., said Tuesday that the deal "may be the most aggressive and anti-consumer merger proposal in history." Read more in the WSJ.
The tremendous advances in technology and price constraint over recent decades have come because of competition following the original AT&T breakup. The market constriction that would result if the government were to allow such a merger would propel us backwards and adversely impact the type of diverse innovative players we need to grow jobs and economic expansion. The deal would further entrench the playing field with one CDMA giant and one GSM giant and fair negotiations would be even harder.
T-Mobile has been a maverick in the wireless market designing its own handsets and offering lower prices to customers. Sadly, even if the deal is blocked it may serve to help freeze the market and some innovation while it is pending. It may be that ultimately this will be less about the merits of AT&T acquiring a competitor, and more about whether AT&T’s huge lobbying team, expenditures and contributions have already virtually acquired the federal government.
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