Philadelphia, Penn. - In a new bipartisan joint letter released today, 33 Pennsylvania state lawmakers joined with 12 Pennsylvania community, advocacy, and civic organizations to express concern that the proposed T-Mobile/Sprint merger is against the public interest: harming Pennsylvania consumers and workers while failing to help rural Pennsylvania. The letter cites CWA’s economic analysis which finds that the merger would eliminate 635 retail jobs in Pennsylvania.
The letter arrives as the U.S. House Judiciary Antitrust Subcommittee held a hearing on the merger this week.
Addressed to federal regulators at the Federal Communications Commission (FCC) and Department of Justice (DoJ) Antitrust Division, the new Pennsylvania letter notes:
“[T]he merger will reduce consumer choice, competition, jobs, workers’ wages, and raise prices for consumers. This is not in the public interest.
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We are confident that your agencies will conduct a thorough review of the proposed T-Mobile/Sprint merger to ensure compliance with antitrust, consumer protection, and public interest standards. We cannot support a merger that would result in higher prices and fewer choices for wireless consumers, job loss for wireless workers, and increased risk to our nation’s security.”
In addition, State Senator Christine Tartaglione sent an individual letter to the FCC and DoJ on February 28, expressing her concerns about the merger.
Several Pennsylvania lawmakers and representatives from organizations explained their concern and opposition to the merger, including:
Senator Katie Muth, Pennsylvania Senate District 44: “T-Mobile and Sprint are each other’s biggest competitors. Eliminating their head-to-head competition would mean higher prices for my constituents and residents across our state. At a time when Pennsylvanians deserve expanded wireless access, this merger will leave the majority of rural households in Pennsylvania and in the US without access to high-speed wireless.”
Edward F. Mooney, CWA District 2-13 Vice President: “This proposed merger is just another example of corporations getting their way to line their pockets at the expense of workers who keep wireless services running across our country. Under this proposed merger, we will see lower wages and higher prices right here in Pennsylvania while the corporate CEOs at the top make even greater profits.”
James Stiffey, ATT Wireless Unit 42 President of CWA Local 13000: “This proposed merger threatens to slash wages for retail wireless workers like me across the state. As a union member, I have seen how the wages we earn by being part of a union family find their way to our communities here in Western Pennsylvania. Families grow and communities thrive because of the strong wages we earn. But fewer employers will mean reduced competition for labor which leads to lower wages and reduced benefits.”
Jennifer Rafanan Kennedy, Pittsburgh United Executive Director: “In today’s digital world, having internet access is crucial for medical access, applying for work, and other basic needs. Many low-income folks rely on their smartphones for broadband access. The proposed merger threatens to price low-income Pennsylvanians out of the wireless market, especially folks with pre-paid plans they rely on.”
Below is the text of the new joint letter from 33 Pennsylvania lawmakers and 12 organizations sent to FCC Chairman Ajit Pai and Assistant Attorney General Makan Delrahim, U.S. Department of Justice, Antitrust Division. A version of the letter is available online here:
Dear Assistant Attorney General Delrahim and Chairman Pai,
Our constituents and organizations rely on wireless service for vital communications services across Pennsylvania. In today’s economy and society, we all depend on quality, affordable wireless communications services. But we fear that the proposed merger between T-Mobile and Sprint, the third and fourth largest wireless companies, is bad news for consumers and workers. As we see it, the merger will reduce consumer choice, competition, jobs, workers’ wages, and raise prices for consumers. This is not in the public interest.
We have seen evidence that eliminating competition between T-Mobile and Sprint will raise prices as much as 15.5 percent, with particular impact on low- and moderate-income customers. Many of these customers rely on their smartphones for Internet access. Price increases of this magnitude could mean families have to drop their wireless data plans, making it even harder for children to do online research and for adults to access employment information, government services, health care applications, and so many other vital services that are available over the Internet.
There are all too many rural communities in Pennsylvania that still do not have access to high-speed broadband, or even any broadband connectivity. T-Mobile and Sprint have largely built their networks in urban areas. As we understand it, the spectrum assets that Sprint brings to this merger are not well suited for rural areas. Therefore, we do not see how this merger will help rural Pennsylvania.
T-Mobile and Sprint, and their authorized dealers, operate more than 770 retail stores across the state. A detailed analysis by the Communications Workers of America predicts that if the merger is approved, the new T-Mobile would shutter more than 168 duplicative stores, eliminating 635 retail jobs and dozens of small business authorized dealers in Pennsylvania. In addition, fewer employers means reduced competition for labor, which leads to lower wages and benefits.
We are confident that your agencies will conduct a thorough review of the proposed T-Mobile/Sprint merger to ensure compliance with anti-trust, consumer protection, and public interest standards. We cannot support a merger that would result in higher prices and fewer choices for wireless consumers, job loss for wireless workers, and increased risk to our nation’s security.
Sincerely,Senator Lindsey Williams, Pennsylvania Senate District 38
Senator Katie Muth, Pennsylvania Senate District 44
Representative Patrick Harkins, Pennsylvania 1st Legislative District
Representative Robert E. Merski, Pennsylvania 2nd Legislative District
Representative Mark Longietti, Pennsylvania 7th Legislative District
Representative Gene DiGirolamo, Pennsylvania 18th Legislative District
Representative Jake Wheatley, Pennsylvania 19th Legislative District
Representative Adam Ravenstahl, Pennsylvania 20th Legislative District
Representative Sara Innamorato, Pennsylvania 21st Legislative District
Representative Dan Frankel, Pennsylvania 23rd Legislative District
Representative Ed Gainey, Pennsylvania 24th Legislative District
Representative Brandon Markosek, Pennsylvania 25th Legislative District
Representative Daniel Deasy, Pennsylvania 27th Legislative District
Representative Frank Dermody, Pennsylvania 33rd Legislative District
Representative Summer Lee, Pennsylvania 34th Legislative District
Representative Austin Davis, Pennsylvania 35th Legislative District
Representative Harry Readshaw, Pennsylvania 36th Legislative District
Representative William C. Kortz II, Pennsylvania 38th Legislative District
Representative Dan Miller, Pennsylvania 42nd Legislative District
Representative Anita Astorino Kulik, Pennsylvania 45th Legislative District
Representative Pam Snyder, Pennsylvania 50th Legislative District
Representative Steven R. Malagari, Pennsylvania 53rd Legislative District
Representative Tom Mehaffie, Pennsylvania 106th Legislative District
Representative Maureen E. Madden, Pennsylvania 115th Legislative District
Representative Eddie Day Pashinski, Pennsylvania 121st Legislative District
Representative Robert L. Freeman, Pennsylvania 136th Legislative District
Representative Stephen McCarter, Pennsylvania 154th Legislative District
Representative Leanne Krueger, Pennsylvania 161st Legislative District
Representative Jennifer O'Mara, Pennsylvania 165th Legislative District
Representative Ed Neilson, Pennsylvania 174th Legislative District
Representative Joseph Hohenstein, Pennsylvania 177th Legislative District
Representative Jordan A. Harris, Pennsylvania 186th Legislative District
Representative Christopher M. Rabb, Pennsylvania 200th Legislative DistrictPut People First! Pennsylvania
Pennsylvania AFL-CIO
Raise the Wage PA
215 People’s Alliance
Keystone Research Center
Restaurant Opportunities Center of Pennsylvania
Asian Americans United
Pennsylvania Domestic Workers Alliance
Media Mobilizing Project
Pittsburgh United
Philadelphia Area Project on Occupational Safety and Health (PhilaPOSH)
Philadelphia Jobs with JusticeCc: Pennsylvania Congressional delegation
Pennsylvania Attorney General Josh Shapiro
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