The Secret $8 Billion Wireless Scam: How AT&T, T-Mobile and Verizon Game the System

[marmar]

AlterNet / By David Rosen and Bruce Kushnick

The Secret $8 Billion Wireless Scam: How AT&T, T-Mobile and Verizon Game the System
Telecom giants Verizon and AT&T have gamed the system, using regulations designed to foster competition to snatch up ever more of the wireless spectrum.

June 16, 2011 |


On May 11, the U.S. Senate Judiciary Committee held a hearing astutely titled, "The AT&T/T-Mobile Merger: Is Humpty Dumpty Being Put Back Together Again?"

At the hearing, Chairman Patrick Leahy, D-Vermont, raised a fundamental challenge: “At present, four companies control nearly 90 percent of the national wireless market. The proposed acquisition would further consolidate an already concentrated market for wireless communication.”

The four companies that control the market (and their estimated market share) are: AT&T (26.8%), Verizon (26.0%), Sprint (22.9%) and T-Mobile (11.0%). With the merger of AT&T and T-Mobile, AT&T (44.0%) and Verizon (30.5%) will control nearly three-fourths of the market; Sprint’s share will increase to 16 percent; and the rest of the providers will drop to 6.3 percent.

If history is our guide, the FCC will approve the merger and come up with loosey-goosey voluntary commitments. And Verizon will most likely seek to acquire Sprint. This will return the U.S. to a wireless duopoly. .............(more)

The complete piece is at: http://www.alternet.org/media/151317/the_secret_%248_billion_wireless_scam%3A_how_at%26t%2C_t-mobile_and_verizon_game_the_system/

[Wilms]

1. ^

[Blue_Tires]

2. For me, there has been a noticable decline in Verizon's already shitty service

[wysimdnwyg]

3. I've been very happy with Verizon's service in the past

But the past few months have seen a notable drop in reliability and speed for data. I would surmise much of that is due to increased usage of their bandwidth - especially since Verizon now supports iPhones. I do wonder if this is also somewhat planned to help encourage people to buy new "4G" phones, though.

[knitter4democracy]

4. After our big storm, only people with Verizon were getting signal.

My friends with AT&T had massive problems even two weeks after the storm. Missed calls, calls dropped, you name it. We lost the huge radio tower on the hill behind our house that had our cell tower on it, and I still could send e-mails and was able to send and receive texts and make phone calls by the next morning.

A lot of people in town are switching to Verizon after that.