Alliance disappointed with Department of Justice move to block merger; lawsuit detrimental to economy and U.S. growth
WASHINGTON, D.C. – August 31, 2011 – The Internet Innovation Alliance (IIA), a broad-based coalition supporting broadband access and adoption for all Americans, today issued the following statement in response to reports that:
- The Department of Justice filed a lawsuit to block the AT&T and T-Mobile merger; and
- AT&T would create 5,000 new jobs at U.S.-based call centers – jobs that are currently outsourced:
“The Department of Justice decision today is contrary to this Administration’s commitments to grow the economy, create jobs and expand broadband deployment,” said IIA Senior Advisor Broderick Johnson. “Next week, President Obama is expected to unveil a wide ranging pro-jobs plan. Approval of this merger is consistent with that critical message.”
“The IIA is supportive of the merger because it will be helpful to our economy and U.S. job creation,” said IIA Honorary Chairman Rick Boucher. “Bringing jobs back to America and investing in broadband technology which will foster innovation – are a win-win for the U.S. economy.”
AT&T, an IIA member, also committed that the merger will not result in job losses for U.S.-based wireless call center employees of T-Mobile or AT&T, when the merger closes. Analysis of the merger has shown the following:
- According to a study by the independent organization Economic Policy Institute (EPI), investment related to the merger will create an estimated 55,000 to 96,000 new jobs.
- The Communication Workers of America (CWA) has stated that a post-merger AT&T will be better able to retain and increase jobs, in the long term, because it will be in a more advantageous position to expand and extend its business than either AT&T or T-Mobile could as separate entities.
“Bringing call center jobs to American workers is commendable, but it’s the tip of the iceberg,” said IIA Co-Chairman Bruce Mehlman. ” The real job-generating benefits of the merger will be seen as higher-speed mobile broadband gets deployed to millions more Americans, giving them far greater opportunities to reach new customers, serve new markets and benefit from new applications and services that are transforming the global economy.”
As recent research shows, investment in broadband technology – also a pledge with the merger – will greatly contribute to job creation in the United States:
- Wireless carriers could invest between $25 billion and $53 billion in building out their 4G network through 2016, which could lead to the creation of 371,000 to 771,000 jobs and gross domestic product growth of $73 billion to $151 billion, according to a study from Deloitte.
- According to a McKinsey study, the Internet creates 2.6 new jobs for every one job lost.
For more information about the IIA visit, http://www.internetinnovation.org/.