Competition at heart of wireless market

By Tanya Sullivan

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Before making a final decision, Iowans like to kick the tires and look under the hood. It's the reason why every four years Iowans test the mettle of our future leaders.

And it's also why Iowa has one of the most competitive wireless markets in the nation, boasting the most regional and rural wireless providers. Competition is deeply valued in the Hawkeye state.

Seems the Justice Department agrees. It has filed suit to block AT&T's takeover of the nation's fourth-largest competitor, T-Mobile. The antitrust regulators at the Justice Department confirmed what RTG has been saying for months: allowing this takeover would eliminate competition in the industry, hurt consumers and kill jobs.

Competition is fundamental to maintaining growth and innovation in every industry, motivating companies to offer the best services at the most competitive prices. The industry's regional carriers are critical players in the competitive landscape, often providing services to consumers who have been left behind by AT&T and Verizon. In addition to often being the lower-cost alternative, these carriers often are rural consumers' only hope for broadband service, which connects them to the global economy and keeps their local economies competitive.

If the merger were allowed, it would send shock waves through the U.S. mobile communications industry and the larger broadband ecosystem that depends upon it. Smaller regional companies rely on access to the national networks for roaming and for backhaul infrastructure. Handing AT&T and Verizon control over almost 80 percent of the industry revenues would make it impossible for these carriers to compete, setting off a domino effect that would consolidate control under the twin monopoly forces of AT&T and Verizon. Iowa consumers would suffer increased prices and poorer service.

The Department of Justice decision is also good for the thousands of T-Mobile employees who are at risk of losing their jobs if the merger is approved. AT&T promised investors billions in “synergies” as a result of the merger - synergies that any Iowan knows is a better sounding word for the elimination of thousands of redundant positions in retail stores, customer service, marketing, accounting and many other business functions.

AT&T has already promised to fight the lawsuit. RTG will continue to fight this anticompetitive merger. Consumers must continue to voice their opposition. Iowa's robust, cutting-edge wireless industry depends on it.

Tanya Sullivan is the executive director, Rural Telecommunications Group, which represents telecommunication companies that serve rural communities. Comments: tanya.sullivan@rural

telecomgroup.org