WASHINGTON-Consumer groups and cellular agents petitioned the Federal Communications Commission to block the proposed merger of AT&T Wireless Services Inc. and Cingular Wireless L.L.C., while organized labor reiterated its support for the $41 billion deal.
“This merger proposes an unacceptable level of concentration at the national level, clearly in violation of the merger guidelines,” stated Consumers Union and Consumer Federation of America in a petition to deny filed with the FCC yesterday.
May 3 was the deadline for challenging the transaction, which would marry the No. 2 and No. 3 mobile-phone carriers and create the largest wireless operator in the nation. Verizon Wireless is currently the top U.S. wireless operator.
Cingular agents, including at least one who sued the cellular operator, also urged federal regulators not to approve the merger. Cingular is 60 percent owed by SBC Communications Inc. and 40 percent held by BellSouth Corp.
“Cingular’s alleged misconduct . is not limited to a single dealer, but is massive and widespread, raising serious questions as to its truthfulness in its dealings with other parties, including the Commission,” the Cingular agents stated.
“Cingular Wireless has not been served with any petitions to deny. However, we believe that Cingular’s acquisition of AT&T Wireless is in the public interest because the combined company will be able to provide customers with better call quality, better coverage, improved customer care and expanded capabilities, including a broader range of data services,” said spokesman Clay Owen.
“This acquisition should be approved as quickly as possible, so that consumers can benefit from all that the new Cingular will be able to provide.”
The Communications Workers of America strongly endorsed the merger, saying it would improve service-including deployment of third-generation wireless services-and not harm wireless competition. In addition, CWA said, “Cingular is a recognized leader among U.S. corporations for its high-performance human resources policies and progressive labor-management policies.”
