AT&T Fires Back Against Antitrust Criticism

According to a CNN report, AT&T is firing back at recent suggestions from policymakers that the cell phone industry is anticompetitive.

In a letter sent Wednesday to Senate Judiciary Antitrust Subcommittee Chairman Herb Kohl, D-Wis., AT&T Senior Executive Vice President of External and Legislative Affairs James Cicconi said American wireless services are among the most innovative and lowest priced in the world.

Cicconi is reacting to Kohl's recent request that the Federal Communications Commission and the U.S. Justice Department embark on a wide-ranging antitrust inquiry into the cell phone companies.

At the same time, The Wall Street Journal has reported that the Justice Department is looking into the telecom industry as a whole for antitrust purposes.

Apple and AT&T have been openly criticized by a number of consumers, especially those looking to use the popular iPhone on other networks, though both companies have largely ignored complaints. Even though AT&T has been successful luring some users away from Verizon Wireless, T-Mobile, and other carriers, there are still quite a few consumers who'd like the iPhone but refuse to switch to AT&T just to use it.

Kohl is concerned about a variety of things, including that just four wireless carriers - AT&T among them - control almost 90% of the market. The other top carriers are Verizon Wireless, Sprint Nextel Corp. (S), and T-Mobile USA.

Cicconi's letter said 95% of the American population can choose between at least three wireless carriers.

It is unclear whether other carriers will weigh in as publicly as AT&T in what has become a hot topic among antitrust officials, reported CNN.

(July 9, 2009)

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