Klobuchar Pushes for Answers on How Potential AT&T, T-Mobile Merger Would Impact Consumers

Press Release

Klobuchar presses CEOs to explain how the proposed merger would impact consumer prices and choices; Klobuchar says competition is vital to the wireless industry

U.S. Senator Amy Klobuchar pressed the CEOs of the major U.S. wireless companies today to explain how the proposed merger between AT&T and T-Mobile would affect American consumers. At a hearing held by the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights, Klobuchar called on the heads of AT&T, T-Mobile, Sprint Nextel, and Cellular South to address how the potential merger could impact consumer choice and limit competition. The Department of Justice (DOJ) and the Federal Communications Commission (FCC) must approve the merger, and Klobuchar is the only senator who serves on both the Judiciary and Commerce Committees, which have oversight over both agencies.

"More and more Americans are relying on wireless phones as their sole means of telephone communication," Klobuchar said. "The proposed merger between AT&T and T-Mobile would change the competitive balance of the wireless market and it's critical we understand how it could affect consumer price and choices. Competition keeps prices down and innovation up and we must ensure that this deal does not stifle competition."

During the hearing, Klobuchar questioned the AT&T CEO Randall Stephenson and T-Mobile USA CEO Philipp Humm about any price changes that current wireless customers could experience should the merger be approved. Klobuchar also highlighted the need to examine the merger from a national perspective and how it would impact wireless prices and services across the country.

Last week, Klobuchar sent a letter to the CEOs of AT&T and T-Mobile which included several questions for the companies to answer regarding whether the merger will lead to fewer choices, higher prices, and reduced services for their customers. Klobuchar noted in her letter that major wireless providers have resisted her efforts to adopt meaningful pro-consumer measures in the industry -- arguing instead that competition among providers would lead to consumer reforms -- and expressed concern that increased consolidation will diminish the possibility that the industry will act on its own to institute pro-consumer practices.

Klobuchar also wrote the DOJ and FCC and urged them to take a close, hard look at the proposed merger to ensure consumers are provided adequate choice in the wireless market.

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