The Wavelength: What does proposed AT&T and T-Mobile Merger Mean?

By Eric K. Arnold, Media Consortium Blogger

Welcome to the Wavelength, your bi-weekly field guide to the world of media policy. Over the next four months, we’ll be compiling great content, connecting the dots, building context, and reporting how media policy impacts the lives of everyday people. From the ongoing battle over Net Neutrality to the wild world of Internet regulation, from partisan crusades to media accountability, the Wavelength is here to keep you in the know.

This week, we're focusing on major mergers, holding telecom giants accountable, and the revolving door at the Federal Communications Commission (FCC).

So, without further ado, let’s take a spin through the media zone.

AT&T to Absorb T-Mobile?

On Sunday, AT&T announced it had reached an agreement with T-Mobile to buy the mobile phone service provider for $39 billion. As reported in the New York Times, the deal would “create the largest wireless carrier in the nation and promised to reshape the industry.”

The immediate upshot is that the number of nationwide wireless carriers would drop from four to three, with Sprint Nextel running a distant third behind AT&T/T-Mobile and Verizon. Another impact could be higher rates for current T-Mobile customers. Advocates of the deal suggest it could improve AT&T’s oft-criticized service, resulting in fewer dropped calls. However, critics note that the roughly $3 billion in projected annual cost savings will likely come at the expense of workers at the hundreds of retail outlets expected to close, if the deal goes through.

Both the Justice Department and the FCC have to sign off on the merger before it can be approved, a process that could take up to a year.

House adds insult to NPR’s injury

On St. Patrick’s Day, the Republican-controlled House voted 228-192 to end federal funding for NPR. The move came on the heels of a secretly recorded video from conservative activist James O’Keefe that purportedly showed NPR fundraiser Ronald Schiller expressing support for Islamic fundamentalism and disavowing the Tea Party as “racist” — leading Schiller and NPR CEO Vivian Schiller (no relation) to resign. The video was later revealed to be excerpted and heavily edited from a longer video which places Schiller’s remarks in context.

At TAPPED, Lindsay Beyerstein watched the entire two hour video, and notes that:

O'Keefe's provocateurs didn't get what they were looking for. They were ostensibly offering $5 million to NPR. Their goal is clearly to get Schiller and his colleague Betsy Liley to agree to slant coverage for cash. Again and again, they refuse, saying that NPR just wants to report the facts and be a nonpartisan voice of reason.

As reported in the Washington Times, the Democratic-controlled Senate is unlikely to pass the bill, making NPR’s federal funding safe—for now. However, the timing of the vote suggests that House Republicans are essentially endorsing O’Keefe’s questionable tactics, showing that their dislike of the so-called liberal media is of greater concern.

Telecoms add ramming to their list of illegal practices

A recent AlterNet story by David Rosen and Bruce Kushnick details sneaky, unethical, and possibly illegal telecom tactics, the most recent of which is "ramming."

“Ramming” happens “when a phone company‘s customer is put on a service plan or package s/he did not need or want or cannot even use.” According to the article, “An estimated 80 percent of phone company customers have been overcharged or are on plans they did not need or even order. These and other scams can cost residential customers $20 or more a month extra and small business customers up to thousands of dollars a month.”

These practices are insidious because modern telephone bills are so cryptic that it’s not easy for even the most astute customer to figure out they’ve been duped.

Powell’s next move

Last Tuesday, former FCC chair Michael Powell announced that he has taken over as president of the National Cable and Telecommunications Association. Leading media advocacy organization Free Press snarkily congratulated Powell via a statement from Managing Director Craig Aaron:

If you wonder why common sense, public interest policies never see the light of day in Washington, look no further than the furiously spinning revolving door between industry and the FCC.

Former Chairman Michael Powell is the natural choice to lead the nation's most powerful cable lobby, having looked out for the interests of companies like Comcast and Time Warner during his tenure at the Commission and having already served as a figurehead for the industry front group Broadband for America.

AT&T imposes monthly usage caps

Finally, we’ve got more bad news for those unlucky enough to have AT&T as their Internet and cable service provider. As Truthout’s Nadia Prupis recently reported, AT&T customers who use the company's U-Verse cable TV service and DSL hi-speed Internet services in the United States can expect a bump in their monthly bills if they exceed a new usage cap – 50GB for DSL customers and 250 GB for U-Verse users. Those who exceed the storage fee will be charged $10 extra for every 50GB over the limit.

Surprisingly, the telecom behemoth continues to insist their price-gouging moves are in the consumer’s best interests. According to an AT&T press release: “Our new plan addresses another concern: customers strongly believe that only those who use the most bandwidth should pay more than those who don't use as much."

Personally, I don’t spend too much time thinking about how much bandwidth other people are using, as long as I’m getting the download speeds I’m paying for.

This post features links to the best independent, progressive reporting about media policy and media-related matters by members of The Media Consortium. It is free to reprint and repost. To read more of The Wavelength, click here. For the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Audit, The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.

Tags: AlterNet, AT&T, Free Press, james o'keefe, Lara Logan, MICHAEL POWELL, Mother Jones, npr, T-MOBILE, TAPPED, The American Prospect, THE WAVELENGTH, TMC, TMCMEDIA, Truth-Out (all tags)

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