Media Warn AT&T/T-Mobile Merger Could Hurt Ethnic Communities

NEW YORK, NY--AT&T’s recently announced acquisition of T-Mobile will significantly impact ethnic communities around the United States, especially low-income populations that could be confronted by reduced service access and higher costs.

But the arcane nature of media policy—jargon-ridden and full of obscure legalisms—often leaves ethnic and community media able to present only sketchy reports for their audiences.

For example, most of the ethnic and community media reported the basic news of the deal because it is one of the biggest business transactions in recent years -- $39 billion. But not many connected the dots for their readers to explain the deal’s impact on their community.

AT&T’s buyout of T-Mobile, if it wins federal approval, would create the nation’s largest wireless carrier. The newly combined entity would have over 125 million subscribers—making it more than a third larger than Verizon’s 93 million. But it would also reduce the number of major wireless carriers in the United States to three, with Sprint being the smallest.

Further wireless-market consolidation could involve Verizon buying Sprint or Sprint swallowing up smaller operators, such as MetroPCS, Cricket Wireless or U.S. Cellular. In any case, wireless services are likely to become more expensive.

Positive Claims

While announcing the deal on March 20, AT&T Chairman and CEO Randall Stephenson promised a process of “seamless integration” of the two companies, with additional spectrum and network capabilities. He said the deal would “help achieve the President’s goals for a high-speed, wirelessly connected America.”

With this deal, AT&T is committing to significantly expanding public access to the higher bandwidth required for such applications as high-quality wireless, video surveillance and multidata-stream wireless connections. Stephenson said if regulators approve the deal, it will spread greater availability of this technology, called 4G LTE (Long Term Evolution), to 95 percent of the U.S. population. That would add 46.5 million Americans beyond access currently planned and would include wiring rural communities and small towns.

Stephenson’s promise is not so reassuring for community journalists, such as Aleksandra Slabisz, a senior reporter with the Polish Daily/Nowy Dziennik, who fears the deal will give AT&T enough market control to behave as a monopolist.

While Slabisz acknowledged potentially positive aspects of the acquisition, such as improving wireless infrastructure and service, as well as expanding broadband to currently underserved areas, she expressed serious concerns about the deal.

Possible Negative Actions

Slabisz, who completed a media-policy fellowship last fall with New York Community Media Alliance, noted that once federal agencies approve the acquisition, AT&T could take actions contrary to a community’s best interests. For example, she said, the corporation could increase prices beyond reach for many consumers, or cut them to undercut competitors.

The new company, Slabisz said, could also control the quality of services, such as by dictating the available applications, software or the amount of data they’d allow to be transferred. Such maneuvers, she stressed, could greatly reduce customers’ ability to communicate and curtail their access to information through mobile networks.

“I think there could be substantial impacts on communities of color and immigrant folks,” said Jamillah King, news editor of Colorlines, a daily news site focusing on racial justice issues. King outlined the basics of the deal and its possible effects on ethnic communities in her article, “Understanding the AT&T Takeover of T-Mobile."