Letter to the Honorable Julius Genachowski, Federal Communications Commission Chairman

Letter

Date: March 21, 2011
Location: Washington, DC

U.S. Senator Amy Klobuchar today sent a letter to the Federal Communications Commission (FCC) and the Department of Justice (DOJ) calling on the agencies to look into AT&T's proposed acquisition of T-Mobile to ensure it does not limit competition and that consumers not face higher prices or reduced services as a result. The acquisition would make AT&T the nation's largest carrier, providing service to 42 percent of all U.S. wireless subscribers and leaving only three major carriers in the wireless market.

"At a time when many Americans are using wireless phones as the sole means of telephone communication, it is vital that competition in the wireless market remain robust," Klobuchar wrote in the letter. "That is why I urge you to take a close, hard look at this proposed acquisition and ensure that consumers are provided with adequate choice in the wireless market."

Klobuchar is a member of the Senate Commerce Subcommittee on Communications, Technology, and the Internet, which has jurisdiction over the FCC. Klobuchar also serves on the Senate Judiciary Antitrust, Competition Policy, and Consumer Rights Subcommittee, which is charged with overseeing the DOJ Antitrust Division.

Klobuchar has worked to protect consumers from harmful billing practices such as "cramming," which occurs when a third party adds unauthorized, misleading, or deceptive charges to consumers' phone bills.

The full text of the letter is below:

The Honorable Julius Genachowski
Chairman, Federal Communications Commission
445 12th Street SW
Washington, DC 20554

Ms. Christine Varney
Assistant Attorney General, Antitrust Division
U.S. Department of Justice
950 Pennsylvania Avenue, NW
Washington, DC 20530-0001

Dear Chairman Genachowski and Assistant Attorney General Varney:

I write today regarding the proposed acquisition by AT&T of T-Mobile. As you know, this acquisition would make AT&T the provider to 42% of all wireless subscribers in the United States and would leave only three major carriers servicing the domestic market--73% of which would be controlled by AT&T and Verizon. Although this deal may spark innovation in the wireless industry, I remain concerned that increased concentration will, at the same time, lead to fewer choices, higher prices and reduced service for wireless consumers.

At a time when many Americans are using wireless phones as the sole means of telephone communication, it is vital that competition in the wireless market remain robust. That is why I urge you to take a close, hard look at this proposed acquisition and ensure that consumers are provided with adequate choice in the wireless market.

I know that you share my concerns over competition and consumer choice. I look forward to working with you on this issue.

Sincerely,

Amy Klobuchar
United States Senator


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