The CEOs of AT&T and T-Mobile were on Capitol Hill today to defend AT&T’s $39 billion bid to acquire its rival T-Mobile.
AT&T CEO Randall Stephenson, who appeared before the Senate Judiciary Subcommittee on Antitrust, told senators that the merger will lead to increased competition and less dropped calls.
Sprint Nextel CEO Daniel Hess, who is against the merger, also testified. He argued that the merger will give AT&T and Verizon 80% control of the cellular market and would lead to a return of the MA Bells of the 1980s.
If this merger is approved, it would combine the nation’s second and fourth largest wireless companies.
Consumer advocates have expressed opposition to the deal citing a possible reduction in competition, which may result in higher prices and discourage innovation.
Though Congress considers the legality of the deal, the merger must be approved by the Federal Communications Commission and the Department of Justice.