Over the past few weeks, there has been tremendous reports featuring one of America's largest companies, AT&T . At&T has come under intense scrutiny from members of the press,government officials, and the public for its proposed takeover of rival cell phone company T-Mobile. AT&T represents the second largest phone carrier in the U.S. and its takeover of T-Mobile would make it the largest phone company in the U.S with roughly 130 million subscribers, surpassing Verizon as the leading cell phone carrier. AT&T states that the takeover of T-Mobile is necessary in order for them to improve their infrastructure, gain additional wireless spectrum to deal with large data usage from iPhone users and the growing smartphone market, and provide high speed mobile broadband and phone services to 95 % of Americans according to one AT&T executive in a CNN report. That would mean AT&T and Verizon would hold a market share of about 80% with only smaller competitor Sprint bringing up the rear end. Lawmakers in Congress has expressed concerns over AT&T quest to buy T-Mobile for $39 billion dollars, citing Anti-Trust regulations, less competition, and higher pricing for consumers. The Federal Communications Commissions (FCC) and the Justice Department review of the buyout would take up to one year as some reports suggest. But a closer look at this debate, as to whether AT&T buyout is constitutional or not leaves many in the public skeptical about government reports that they will conduct an extensive investigation into the proposed buyout. And they should be skeptical.
AT&T unbeknownst to many is the leading coporate lobbyist in Washington with $46 million dollars given to lawmakers since 1989 and $15 million in the 2010 elections alone. For example AT&T in the last congressional election gave a whopping $87,000 to current speaker of the House of Representatives John Boehner and $89,650 to current Senate majority leader Harry Reid. And in 2008, both John McCain and Barack Obama received substantial amounts of money from AT&T lobbyist with $201,000 and $264,111 respectively. Now it is quite obvious for years AT&T has had political influence in Washington, enticing many lawmakers with money. By and large, AT&T poses a risk to consumers who may now face higher prices, despite AT&T claims that the market will drive prices down. AT&T is too heavily involved in Washington and the American public has to take action now. It is highly unethical and the public interest is at risk if AT&T is buying political power. AT&T behavior alone, makes it appear very confident that it will get approved for this buyout. And why shouldn't they be confident? They have strong ties politically with both Republicans and Democrats and they employ about 90 lobbyist, some of who were were former Senators and Representatives in the house, or better yet Washingtonians. Simply put, AT&T is a corporate behemoth with Washingtonian benefits. AT&T even agreed to pay $3 billion in breakup fees and give T-Mobile wireless spectrums, an absurd move for any company. Yet, AT&T does not mind making deals like this since they're confident the buyout will be approved largely due to their extensive lobbying campaign over the years. That said, Politicans in Congress cannot be trusted and the American public needs to step up the pressure on them to tell the truth. Congress members are trying to frame the news by stating concerns about this buyout, while at the same time receiving money from AT&T lobbyist. One thing the public can stay upbeat about is the fact that numerous journalist has already challenge the notion of an AT&T buyout and openly labeled such a move as violating antitrust laws. For once the American public can be grateful for the media releasing information about high level members of our government receiving money from lobbyist or else we would not have known otherwise. However, the fight does not end there. AT&T has already began spending huge amounts of money hiring more lobbyist, and creating ads trying to minimize backlash against their buyout and create a more favorable image for them in the press.
As a result, more than ever, we need more modern day watchdog journalist like Bob Woodward in the Watergate scandal of the 1970's who will take start a crusade against corporation and government manipulation in the news,specifically in this case, to oust the cozy relationship between AT&T and the government. After all, AT&T is the same comapany in the the 1970's and 1980's broken up under antitrust laws and if left uncheck this time, they may succeed in creating a scary corporation with large market capabilities and our politicians won't do anything about it because many lawmakers have a personal interest in AT&T. For example in one recent report AT&T was ranked as the "sixth most popular investment among members of the Senate and House in 2009." Thus, there need to be laws created to restrict corporations from enticing members of congress with money or providing them with election campaign funds because not only is it compromising on our democracy but it is compromising on politicians ability to do their job well and serve the public interest accordingly.
Sources
http://www.washingtonpost.com/blogs/post-tech/post/in-pursuit-of-t-mobile-atandt-has-fierce-lobbying-clout/2011/03/23/ABxzvlJB_blog.html
http://online.wsj.com/article/SB10001424052748704355304576215012309574044.html
http://www.reuters.com/article/2011/03/23/idUSN2324222120110323?pageNumber=2
http://www.reuters.com/article/2011/03/22/us-telecom-lobbying-idUSTRE72L63E20110322
http://money.cnn.com/2011/03/28/technology/att_telekom_lobbying_power/index.htm
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In deed the corporations in the USA have such an enormous influence on the politics, I ask my self why aren't the people able to appeal to AT&T representatives on political issues as well being that they have such a huge say on the outcome of the policies that in the end affect the common people most badly. What is happening today is what the founders of this country already predicted when they established the Checks and Balances System, only that the interest groups became so powerful despite the system in effect. The only check, if you can even call it that, is the media but only because it still has the ability to point these injustices out to people. Who knows, maybe we will have a Revolution soon too.
ReplyDeleteThe relationships that wealthy corporations create with Washington are only advantageous to those individuals. People's needs and rights are pushed to the side while the law is hidden under the rug. It seems as though the jobs of members of Congress have changed over time, money talks and money wins. It is so sad that AT&T can so easily invest thousands of dollars in all of these lobbiest without worry of failure when unlawful actions of the company are questioned. It creates a deep distrust between the people and government.
ReplyDeleteThis is a scary topic, as in it's a scare when a company like that has influence over the majority of the population.It almost seems like a monopoly at this point.I was read in a NY times article that Tmobile buyout had a lot to do with the iphone being carried exclusively on at&t and how Tmobile just could not match.Apple,another company close to a monopoly.I can't help but think of Skynet.
ReplyDeleteCorporate America and Washington- BFF'S. It's the same old story. When the story first broke a few weeks ago, as a T-Mobile customer, I was outraged to find out that I have no say in the matter. After reading your blog, I'm even more mad. I for one, was unaware of the extent of AT&T and Washington's relationship. This is extremely scary and one can only imagine what else is out there that the public doesn't know about. Your blog was so informative I just wanted to keep reading more. I liked how you demonstrated the media's take on it, and agree with you on the Bob Woodward analogy. To touch base with Nathalia, money definately does talk, and its unfortunate that the public gets screwed by the people they vote for.
ReplyDeleteAs in the last post, you want to add paragraphs here, and when you are using articles/blogs/outside sources for facts and information, you need to cite the sources right after the information appears, to make it clear exactly where it is from. Overall here, I think you make some good points about the value of watchdog journalism, although when you say, "One thing the public can stay upbeat about is the fact that numerous journalist has already challenge the notion of an AT&T buyout and openly labeled such a move as violating antitrust laws," your links really do not provide evidence of that. The articles you point to are all pretty clear on AT&T's lobbying prowess, but they don't seem to take strong position that the merger is illegal (though they might point to critics who say this). In the post as a whole, the political elements are clear but now the media needs to be a bigger part of the content (and maybe you want to edit out more information not relevant). You write "Congress members are trying to frame the news by stating concerns about this buyout, while at the same time receiving money from AT&T lobbyist" but that does not really constitute framing as we have discussed it, and there isn't evidence here that they are doing this, or HOW they are framing the stories. So again, I think a more narrowly focused post that emphasizes the media more would be great.
ReplyDelete