The New York Attorney General is planning to launch a “thorough review” of the acquisition of T-Mobile USA by AT&T due to concerns that the deal may be anti-competitive. A statement from the Attorney General’s office stated that the merger could lead to…
The New York Attorney General is planning to launch a “thorough review” of the acquisition of T-Mobile USA by AT&T due to concerns that the deal may be anti-competitive.
A statement from the Attorney General’s office stated that the merger could lead to a process of consolidation in which two firms – the newly-merged company and Verizon Wireless – would have almost 80% of wireless subscribers, creating what it called a “near duopoly”.
The Attorney General Eric Schneiderman emphasised that the market conditions vary across New York State, so the effect of the merger deal could be potentially be much more significant in metropolitan areas such as Rochester or Albany where there is relatively little wireless competition.
He also expressed concern for consumers across the state, as T-Mobile is currently a low-cost option.
On the other hand, the deal could see improved service for rural areas of the state that have poor bandwidth connectivity at present.
Schneiderman said: “Affordable wireless service and technology, including smart phones and next generation handheld devices, are the bridge to the digital broadband future. We want to ensure all New Yorkers benefit from these important innovations that improve lives.”
