AT&T T-Mobile deal gets support from Georgia leaders but not consumers

By Kristi E. Swartz

The Atlanta Journal-Constitution

Gerald McLemore already has a plan if AT&T buys T-Mobile USA.

“I will switch to Sprint,” he said.

McLemore, a longtime T-Mobile customer, so strongly opposes the pending $39 billion mobile phone transaction that he filed an online statement with the Federal Communications Commission, along with more than 700 other Georgians. Even though AT&T's wireless division is based in Atlanta, comments from Georgians and Atlantans show there are few fans for this home team. An informal sampling of the statements from state residents ran against the transaction by 28 to 1.

Some consumers say the move would make AT&T too big, reducing competition for low prices and innovative technology.

“There’s no longer competition for these companies to push technology forward,” said T-Mobile customer Mark Cassel, who believes the combined company would create a duopoly. “Ma Bell was broken up for a reason. They are essentially Ma Bell again.”

Many residents also complained about AT&T’s service quality and fear that the issue of dropped calls and spotty coverage would spread to T-Mobile once the deal is complete. The FCC routinely invites public comment on major issues of interest.

Atlanta's AT&T Mobility is the richest, strongest and fastest-growing unit of Dallas-based AT&T. If approved, the new company would be the nation’s No. 1 carrier with 129 million subscribers, serving about 43 percent of mobile phones in the United States.

The deal must go through the FCC and U.S. Department of Justice, which will hold hearings and consider testimony, including the now 33,000 public online comments that have been filed. Each comment is weighed equally, an FCC spokesman said. The process will take at least six months, though many expect it to last a year or more, given the size of the deal and anti-trust concerns.

The public may file comments with the FCC, though formal statements, such as one filed by Sprint, in opposition to the transaction were due May 31. Responses to those comments were filed June 10.

AT&T, through a spokeswoman, would not comment on the number of opposing statements filed about the transaction but instead pointed out that the deal has "unparalleled support from across the political and commercial landscape," including governors, labor unions and vendors. The Metro Atlanta Chamber, the Technology Association of Georgia, Gov. Nathan Deal, state Rep. Calvin Smyre, D-Columbus, state Agriculture Commissioner Gary Black and Atlanta Mayor Kasim Reed are among the city and state officials who filed comments backing the move.

“I am committed to support advancements in technology that will encourage connectivity, improve voice and data network performance and close the digital divide still present in major metropolitan areas across the country,” Reed said in his comments.

When asked whether AT&T considers comments from elected officials and business leaders to weigh more heavily than those from everyday consumers, a company spokeswoman clarified: "The deal enjoys a high level of broad support from a groups and individuals representing a huge number of Georgia consumers."

In their online comments, most supporters of the deal said the larger company would improve cell service and keep jobs in the U.S.

Yet, outside of its officials, few Atlantans who posted comments lent support to the wireless carrier that has employed thousands of workers and contributed millions to the metro area in corporate sponsorships and grants.

“I fear that the customer service that I so much appreciate will go away,” said Michael Warner, who has been a T-Mobile customer before Deutsche Telekom bought the wireless company, then known then as VoiceStream, in 2001.

More than half of the opposition comments from Atlanta residents were identical, taken from a statement posted on a website by the Free Press, a nonprofit media-reform organization. The statement is part of a letter it sent to the U.S. Senate subcommittee that handles antitrust issues.

"AT&T's takeover of T-Mobile would stifle choice and innovation in the market, harm consumers, and lead to higher prices and fewer jobs nationwide," the statement read. "Don't let AT&T put our mobile future at risk."

As expected, AT&T filed comments with the FCC on June 10 supporting the move.