The hearing, held by the antitrust subcommittee of the Senate Judiciary committee, will examine whether or not the proposed deal would be the equivalent of "Humpty Dumpty being put back together again," according to the Judiciary committee's website.
The committee's allusion is a reference to the old "Ma Bell" AT&T monopoly that the government broke up in 1982, illuminating many of the anti-competition fears and trepidation that have arisen since the $39 billion acquisition was first announced in March.
AT&T defends the deal as beneficial to mobile consumers, saying it would let it offer improved high-speed data in more areas, expand rural area service, improve coverage and reduce congestion on its network.
However, critics contend that the acquisition would lead to a virtual duopoly, with two carriers -- AT&T and Verizon -- controlling nearly 80 percent of the market. This could reduce price competition, making service more expensive, and perhaps see reduced handset selection for consumers.
The hearings could be the first public, official chapter of what promises to be a long fight for AT&T as it faces down regulatory scrutiny. Already significant opposition is marshaling -- rival Sprint, which would be a very distant number-three in the mobile market if the merger goes through, has vowed to fight the deal.
Several states will also investigate the potentially anti-competitive acquisition, with state general attorneys in New York, Connecticut and Minnesota raising concerns about the proposed merger, which must be approved by both the Federal Communications Commission and the Department of Justice.
The hearing will be held by the Senate Judiciary antitrust subcommittee on May 11 and will be headed by Wisconsin Democrat Herb Kohl. The committee has not yet announced any scheduled speakers or witnesses for the hearing.
Visit Creative bazaar for Daily Updated Hairstyles Collection
No comments:
Post a Comment