AT&T's largest union expressed concern in its FCC merger comments that this Bell merger could result in lower customer service quality:

"CWA is particularly concerned that the merger of BellSouth into a national company could result in the closing of technical operations, call centers, or other facilities in one community and the movement of that work to another community. The result will be the destruction of careers for employees and good jobs in many communities. Moreover, since quality service depends upon adequate staffing by trained, career employees, the result would be the deterioration of service provided to customers."

-- Communications Workers of America, FCC Comment Filing, June 5, 2006.

Customer service provided by both AT&T and BellSouth declines in quality each year, as they face reduced competition. Imagine what will happen after this merger?

Example: In Florida, the average wait time to get a new phone line installed increased by nearly 50% from 2000 to 2005 -- it now takes 1.7 days for BellSouth to put in a new phone. Source: FCC ARMIS data.

Example: In Kansas, the avergae installation time for AT&T to put in a new phone increased almost four fold -- from .7 days in 2000 to 2.5 days in 2005. Source: FCC ARMIS data.

Widening the Digital Divide?

A coalition of Mayors from large cities across the country with siginificant minority populations expressed concern that the AT&T/BellSouth merger would perpetuate, and indeed worsen, the digital divide, based on AT&T's public statements regarding its intent to reach only "high value" customers with its network upgrades.

"The proposed merger has the potential to exacerbate the differences in access to telecommunications services based on race, income level and geography. AT&T has allegedly engaged in the practice of redlining in the deployment of its cable, telephony and data services throughout the United States. Even when AT&T has deployed in low-income or minority neighborhoods, there continues to be a disparity in the quality of service when compared to affluent and predominantly white suburban areas. [Affluent] areas often received the best technology, at the most reasonable rates with the highest quality installation and service technicians"

-- Concerned Mayors Alliance, FCC Comments, June 6, 2006.

AT&T/BellSouth recently instituted a new plan for Cingular wireless customers who are low income -- kick them out. On the wireless side, it appears that the unification of Cingular will bring huge benefits to AT&T, but none to consumers. On August 1, Cingular announced that it would begin charging customers who haven’t purchased new phones in three years an extra $5 per month until they agree to buy a new phone, whether they need one or not.

-- According to Cingular, there are 5 million customers who have these older phones. These customers are largely lower income customers who cannot afford new phones – yet Cingular will cut them off if they don’t buy new phones. Cingular said it wants to force these “low value” (another way of saying “low income”) customers off of its network.

-- Cingular’s Chief Operating Officer, Ralph de la Vega, confirmed on August 1 that consumers who have older phones “are almost certainly lower revenue subscribers” and said the plan to get them off Cingular’s network was “very surgical” and that “most of the churn that happens if that does occur will be good churn.” Forcing consumers who might not be able to afford new phones to pay an extra $5 fee per month, with the goal of forcing them off of Cingular’s network, appears to be an accurate portrait of the treatment consumers can expect from the “new” AT&T.

-- Now we find out, thanks to documents from Cingular insiders and posted by the Consumerist.com web site (see http://consumerist.com/consumer/wireless/cingular-distills-customer-value-into-thermometer-form-188379.php), what Cingular means to do to these “low value” customers who pay “less than $30 per month” for wireless service. The documents instruct customer service representatives at Cingular: “Some customers contribute more value to Cingular than others . . . we are most interested in keeping the most valuable customers. We do not want to give our most valuable offers to retain a low-value customer.”

-- Congress expressly amended the Communications Act to require the Federal Communications Commission to "make available, so far as possible, to all the people of the United States, without discrimination on the basis of race . . " such vital communications services. Why hasn't the FCC at least investigated allegations of redlining by AT&T? Will it approve this merger without even looking into it?

-- Usually when a consumer doesn't like the way her service provider treats her, she can switch. But what if there is nowhere else to go? Customer service plummets when a monopoly knows you have no others choice.

If AT&T swallows BellSouth and Cingular Wireless, they will likely own your phone.

There are approximately 136-million fixed telephone lines in the country. AT&T currently controls 44 million phones lines. BellSouth controls 18.8-million phone lines. (Verizon, the only other giant phone monopoly in the country, controls 48.6-million phone lines.) Following the AT&T/BellSouth merger, AT&T/BellSouth will control 46%, and Verizon will control 35.7%, of all phone lines.

Of course, AT&T and Verizon don't compete against each other, so we're all stuck with the Ma Bell monopoly, and nowhere else to go.

Source: ARMIS Report 43-08, Operating Data Report: Table III, YE 2005

Wireless becomes a monopoly too as a result of this merger. Cingular wireless has approximately 54-million customers. Verizon Wireless has approximately 53-million customers. The two Bell behemoths -- AT&T and Verizon -- thus control nearly 60% of the nation's wireless phones: Cingular (AT&T) controls a 27.7% market share, and Verizon Wireless enjoys a 27.2% market share.

Source: Customer Numbers