Public interest groups have waged a spirited campaign to prevent a corporate takeover of the Internet.
AT&T spared no expense in 2011 when it sought government approval of its $39 billion deal to acquire T-Mobile. The merger would have created a duopoly, leaving AT&T and Verizon in control of nearly 80 percent of the wireless market.
AT&T would then have been able to set higher prices, at a cost to people on modest incomes who depend on their cell phones to connect with work, family, and the details of modern life.
The poor and people of color would have been hard-hit. The National Hispanic Media Coalition, for example, said the merger would increase the cost of wireless services for Latinos. And the Center for Media Justice noted that the merger would have resulted in “fewer options and higher prices” for people of color, who disproportionately depend on access to the Internet through mobile devices.
Knowing there would be opposition to this deal, AT&T began doling out money in Washington, D.C. The company spent $16 million on lobbying during the first nine months of 2011 in its drive to pass the merger, dished out $2 million in campaign contributions to both Democratic and Republican members of Congress, and spent $40 million on advertisements promoting the deal.
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1 comment:
"Corporate takeover of the Internet"? Corporations provide us with the Internet. They can do what they want with their product. Those advocating against a "corporate takeover of the Internet" are advocating in favor of a government takeover of the Internet. I'd much rather deal with Verizon or Comcast for my Internet than the Federal Communications Commission. I can always fire Verizon if I don't like it. I can't fire the FCC.
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