The U.S. Cattlemen’s Association this week took some time out to go all out for AT&T’s proposed merger with T-Mobile.  In addition to successfully navigating the FCC’s arcane comment filing system to submit their comments in favor of the merger, the group also penned a lengthy, favorable guest blog for Washington, D.C. inside-the-beltway-favorite, The Hill newspaper:

The expansion of next-generation wireless broadband envisioned by the T-Mobile and AT&T merger, for example, is critical for the next stage of rural America’s evolution and success. It will allow ranchers, farmers, and all rural residents who have been traditionally underserved to finally gain access to the best that mobile broadband has to offer, including faster and more reliable connections. We strongly encourage the Federal Communications Commission to support these developments as an investment in both the current and future generations of agricultural producers and small communities across rural America.

The cattlemen’s group has had a lot to say about telecommunications issues, especially mergers and acquisitions.  It was cited by Verizon as a supporter of its merger with Alltel in 2008, signed a joint letter in 2008 from industry-connected Connected Nation for a broadband plan compatible with the interests of the nation’s largest cable and phone companies, wrote a letter to the FCC opposing Net Neutrality in 2009, and submitted two pages of comments in May favoring the merger between AT&T and T-Mobile.

Apparently there is plenty of free time on the ranch to ponder billion dollar telecommunications mergers.

The argument from the group is that permitting mergers and blocking open net policies like Net Neutrality will convince carriers to provide enhanced service in rural areas where cattle ranches predominate.  But facts in evidence illustrate how wrong-headed that argument is:

• Verizon’s merger with Alltel has done nothing to bring its LTE network to rural America.  Verizon is focusing LTE upgrades on the markets where it makes the most business sense, and that does not include rural Texas or Oklahoma;
• The National Broadband Plan has directed stimulus funding for rural projects that are most likely to reach their ranch members — wireless ISPs and rural DSL.  The cattlemen’s group has nothing to say about either provider;
• Net Neutrality and the policies of an open and free Internet have no real impact on rural broadband deployment.  The same companies refusing to provide service yesterday are still refusing to provide service today, and that includes completely exempted wireless providers;
• T-Mobile’s urban-suburban focus is a mainstay of its business plan.  T-Mobile has never prioritized rural America as a viable service area, relying on roaming agreements to fill in service gaps.  Combining its urban-focused wireless infrastructure with AT&T will add nothing to the rural wireless experience.

The Washington Post finds financial connections between AT&T and the cattlemen group.

Advocating for a merger with T-Mobile makes about as much sense as the group advocating for a T-Mobile merger with Leap Wireless’ Cricket or MetroPCS.  All have a record of indifference about providing service in rural areas themselves.

So why does the group persist in fronting for AT&T’s public policy agenda?  Cecilia Kang at the Washington Post tweeted the obvious answer — they receive support from AT&T.

The piece for The Hill was penned by Jess Peterson, the cattlemen group’s executive vice president.  But Peterson has a second career: president of Washington, D.C.-based Western Skies Strategies, a lobbying firm that promises “success and profitability to our valued clients every time.”

The concept of dollar-a-holler public advocacy is not new, but AT&T is the Master of the Astroturf Universe.  The Center for Responsive Politics notes that from 1989 to 2010, no single company spent more on campaign contributions than AT&T.  Since 2008, more than $1.25 million has been “donated” to politically-connected charities and those willing to lend their name and reputation to back the company’s public policy agenda.

Facts have a hard time penetrating piles of cash, but here are some anyway:

1. T-Mobile’s combination with AT&T may create additional capacity for the combined company, but almost entirely in urban and suburban areas that will do nothing to help rural wireless.
2. No telecommunications company has a track record of providing service in areas unprofitable to serve or fail return on investment demands.  No merger will change that.
3. Promises for network upgrades already committed in long-range business plans do not sweeten a bitter deal for Americans concerned about competition in the wireless marketplace.
4. T-Mobile’s track record as being the most market-disruptive in pricing and innovation will be eliminated in a merger with America’s lowest rated wireless carrier.
5. Any excitement for rural wireless broadband from AT&T is tempered when would-be customers realize the company enforces a 2GB usage cap with an overlimit fee on their smartphone data plans — an Internet Overcharging scheme more punishing than either Verizon or Sprint.

When Stop the Cap! reader Nancy learned earlier this year AT&T was pushing yet another deregulation bill in the Michigan legislature allowing the company to abandon landline service if and when it chooses, she called AT&T and her state representatives to protest.

“When I called AT&T, the representative literally told me if the company ever did decide to stop offering basic phone service in Michigan, I should just ‘get a cell phone,'” Nancy reports.  “Naturally they tried to sell me one of theirs and I replied I was not likely to be loyal to a company that was willing to abandon me and hundreds of thousands of other rural customers.”

As in Wisconsin, AT&T’s lobbying efforts follow the same basic playbook: use friendly legislators and dollar-a-holler groups financed in part by AT&T to push deregulation as “improving competition” and making the state “business friendly.”  But as Nancy learned from experiences in Wisconsin, those are empty promises when rates go up.

“These same people pushed to deregulate cable in Wisconsin so they could offer AT&T’s cable TV service, promising lower prices if we had AT&T competing against Time Warner Cable,” Nancy remembers.  “Time Warner and AT&T raised their rates for both services, instead.”

Nancy has a good memory.  So do we.  Yet again, AT&T’s chief Astroturfer is Thad Nation, this time under the name of the Midwest Consumers for Choice and Competition.  While consumers get ignored, Nation gets time to testify before the House Energy and Technology Committee.

Nation, who runs a lobbying firm, told legislators companies like AT&T should not have to invest in old copper-lines that consumers don’t care about.  He claims it prevents AT&T and other companies from investing in broadband and wireless.

The only thing missing from this group are actual consumers. Instead, their "partners" include: AT&T, groups funded by AT&T, and several chapters of the Chamber of Commerce.

In reality, legislation pushed by AT&T will allow them and other phone companies to abandon providing even basic landline service in the rural areas they no longer care about. There is no evidence (and no regulation) AT&T will invest in either broadband or improved wireless service in rural areas where the company is unlikely to quickly recoup its investment.

Our friends at the Michigan Telephone Blog pointed us to a piece in the Huron Daily Tribune, a newspaper at ground zero for rural Michigan’s potential loss of landline service should the deregulation bill pass.

Located in Michigan’s “thumb” — the northeastern part of the state separated by Saginaw Bay, Tribune reporters drilled down into the implications for the loss of traditional landline service in this largely-rural area of Michigan.

Huron County Commissioner John Bodis, who chairs the Legislative Committee, said he’s aware of the bill and foresees some issues with it, particularly in regard to the provision allowing phone companies to discontinue landline service in an area where Voice over Internet Protocol (VoIP) or cell phone service is available.

“If it’s not mandated, they’re not going to do it,” he said. “So, I’m hoping the Senate version will tweak that a little bit and hold their feet to the fire, but I don’t know.”

In its May Capitol Currents, the Michigan Township Association reported its concerns center around residents losing their land-line phone services when other options are not adequate (i.e. poor cell phone coverage because of hills, trees, etc.).

In written testimony to the House Energy and Technology Committee, Brian Groom, president of the International Brotherhood of Electrical Workers, Local 1106, stated over the past decade, the Michigan Legislature has gradually removed telecommunications providers from the oversight of the MPSC, and HB 4314 would complete that process by eliminating the last vestige of regulation — the Primary Basic Local Exchange Service.

“This service, as currently mandated in state statute, requires residential service providers to offer — at the very least — a basic calling plan to customers in their service territory,” Groom stated. “In 2005, when (M)PSC regulation of larger calling plans was eliminated, proponents argued that the public would continue to be protected by the existence of a Primary Basic Local Exchange Service requirement.”

“This means telecommunication companies providing basic local exchange or toll service will be able to discontinue or deny service to any customer who has access to ‘a comparable voice service.’ Nothing in the bill ensures that such service would be affordable, reliable or of a minimum quality,” Grooms continued. “For customers living in remote areas which are of a higher cost to serve via landlines, this legislation could result in them having to depend on higher cost and less reliable forms of telecommunication services. This bill would create a telecommunications environment where large areas of the state have no access at all to traditional landline telephone service.”

“That means people like me and my friends in places like Bad Axe, Elmwood, and Minden City — communities few people outside of Michigan would have heard of, get disconnected because they are too rural to get much attention from these companies,” Nancy says.

Frontier Communications, which provides service in some areas of the state, claims monopolies don’t exist in the phone business:

In written testimony, Bob Stewart, Frontier Communications state director of governmental affairs for Michigan and Indiana, indicated the current atmosphere is no conducive toward monopolies.

“The telecommunications industry in Michigan has moved to a highly competitive environment where monopoly powers even in rural areas do not exist,” he stated. “Unneeded and outdated regulations in the Michigan Telecommunications Act are cleaned up by HB 4314. Michigan needs to celebrate the success of the MTA by declaring victory; not over regulating simply for the sake of regulation.”

But many rural Michigan residents far from cable television and strong signal cell phone service would beg to differ.

“The further inland you head on the ‘thumb,’ the worse things get,” Nancy reports.  “Much of this is farm country and they can’t even get DSL service, and cell reception might be barely adequate outside, but walk inside and your signal is gone.”

Despite consumers like Nancy getting upset when they learn the long term implications of these bills, without a public outcry it is easy for legislators to vote with AT&T.  In the House, HB 4314 passed 102-6.  The six standouts that stood up for consumers?

Reps. Vicki Barnett (D-Farmington Hills, Jeff Irwin (D-Ann Arbor), Steven Lindberg (D-Marquette), Lesia Liss (D-Warren), Edward McBroom (R-Vulcan) and Phil Potvin (R-Cadillac).

Governor Walker

You have to hand it to Wisconsin Gov. Scott Walker.  He wants to push through his legislative agenda come hell or high water.  After creating a national controversy about his battles with the state’s public unions, Walker and his Republican colleagues are in a hurry to ram through their laundry list of legislative initiatives before Wisconsin voters have a chance to potentially recall a number of them.

Among Gov. Walker’s favorites — a telecommunications deregulation bill ghost-written by AT&T.  If such legislation seems familiar to you, it is.  It’s largely the same bill written by and for telecommunications companies that withered in the Democratic-controlled legislature last year.  Now the Republicans hold the majority, and they see measures to strip out rate protection for basic landline service, investigations of consumer complaints, and holding low-rated companies’ feet to the fire as “anti-business and anti-competitive.”

Somehow, bill proponents claim, all of this deregulation will inspire AT&T and other companies to wire rural Wisconsin for broadband service, which would be a remarkable feat considering they’ve not done so in other states where they’ve passed nearly-identical deregulation bills several years ago.  In fact, the bill eliminates any state oversight of broadband matters period, end of story.

Perhaps AT&T’s goodwill will bring broadband to the rural masses.  What are the chances?  Not good, considering the proposed legislation also allows AT&T the right to abandon providing basic telephone service in the same rural areas still waiting for broadband.  Your chances of getting DSL from AT&T are markedly diminished if the company decides to disconnect your phone line, permanently.

“What’s in it for the citizens of Wisconsin?” asked Rob Boelk, president of one Wisconsin chapter of the Communications Workers of America that represents AT&T workers. “If you want to give away the farm, what will you get in return?”

Why campaign contribution checks, of course.

AT&T and other telecommunications companies have donated heavily to legislators in the state, particularly those sponsoring their legislative wishlists.  Walker has made serving the interests of AT&T and the Wisconsin State Telecommunications Association one of his top priorities this spring.

AT&T is delighted.  In fact, they are so confident in their friendship with Walker and the Republican-controlled legislature, they are willing to throw their usual deregulation allies overboard in the bill.  Verizon and Sprint are fiercely opposing AT&T’s bill, despite promoting it in prior years.  At issue are new provisions requiring wireless and VoIP providers to pay higher government fees and also pay access charges for using other companies’ broadband networks (AT&T’s) to complete calls.

At a recent hearing, telecom company executives told members of the state Senate’s Information Technology Committee Senate Bill 13‘s deregulation would bring competitive balance in the industry, wider broadband access and create tens of thousands of jobs.

They didn’t bring any evidence to back up those claims, but bill sponsor Rich Zipperer, (R-Pewaukee) was ready to deliver AT&T’s talking points anyway.  He’s a helper.

“Today’s smart phone world is governed by rotary phone regulations,” Zipperer said. “We have to ensure our telecommunications infrastructure can keep up with market demands.”

Evidently that means upgrading wireless networks, something AT&T is preoccupied with these days judging from their television ads, while ignoring Wisconsin’s rural consumers.

In fact, when similar bills passed in other AT&T states, basic telephone service rates began increasing, sometimes repeatedly.  AT&T wants to push customers into pre-packaged bundles of services, so most of the savings go to those who take all of their telecommunications business to AT&T.  But if all you want (or can afford) is a basic telephone line, price increases are in your future.

The dollar-a-holler groups are out and about

Zipperer called copper wire landlines “ancient technology,” a relevant point if AT&T was delivering something better to every Wisconsin resident.  They are not.  Instead, while their landline network languishes in rural areas, the company is investing in U-verse upgrades in larger cities, setting up the potential for telecommunications have’s and have-no-longer’s.

Some of the accompanying documentation supporting the deregulation bill is also suspect.

We were particularly struck with broadband map data provided by bill proponents showing a bountiful supply of competitive choice for broadband service in Wisconsin. Ironically, their bill also bans the state from getting involved in broadband mapping in the future.  Those who control the maps control the debate over broadband availability.  As usual, provider-influenced maps promise service where none exists or comes with strings attached.

Providers equate wireless broadband as identical to DSL, fiber, and cable Internet service.  Because of that, customers even in “one-bar” towns can “enjoy” wireless broadband from AT&T and Verizon (as long as they keep it under 2-5GB a month with AT&T or under 10GB on Verizon’s mobile broadband plans.)  Sprint, which barely covers rural and suburban Wisconsin, is also considered a player.  So is T-Mobile, despite the fact AT&T wants to buy it.  For most of Wisconsin, the broadband reality is far different.  AT&T is the dominant provider of DSL and U-verse service, Time Warner Cable delivers most of the cable broadband.  In rural areas, a handful of Wireless ISPs deliver service to some areas, but many others have no access at all.

Robust competition?  No.  Will this bill change that?  No.

Wired Wisconsin is wired into AT&T's cash machine.

Deregulation only enhances the trend of landline providers like AT&T allowing their aging landline networks to go to pot.  Providing DSL or wireless broadband to rural Wisconsin requires the same return on investment with this bill as it does without, and these companies have refused to deliver either, using that reasoning, for years.

Despite common sense reality, the dollar-a-holler groups are working overtime with AT&T to push this bill.  Take “Wired Wisconsin,” a group particularly ‘burdened’ with its corporate sponsors (namely AT&T).  Wired Wisconsin is all for the deregulation bill, which they like to call “modernized telecom rules.”  The group’s leader Thad Nation, is a lobbyist who has run several campaigns promoting AT&T’s agenda, including the ironically-named Midwest Consumers for Choice and Competition, TV4Us and Technology for Ohio’s Tomorrow, all creatures of AT&T.

Nation’s lobbying firm explains how it works:

Getting government officials or bodies to do what you want isn’t easy. Government is inherently a slow, bureaucratic entity. When you want elected or appointed officials to change policy, you need a comprehensive plan – and the resources, relationships and quick-thinking to implement that plan.

We come to you with decades of experience in advocacy, moving legislators and engaging state agency leaders to action. Let us help you build and drive an aggressive advocacy agenda.

It’s a tough job, and Nation can be glad he isn’t doing it alone.  The Discovery Institute, which has turned pay-for-play research into an art form, was linked by Wired Wisconsin to “negate the myths and false assumptions” deregulation will bring.  They quote from Connected Nation, another industry connected group.  The only false assumption is that these people do this work for free and their results represent actual independent analysis.

Even if one were to believe AT&T’s claims, fact-checking them is just a few states away, in places like Arkansas, Kansas, or Texas.  None of them are bastions of rural broadband.  They weren’t before AT&T’s lobbying circus came to town and they still aren’t after they left.

It's "Return of the Astroturf Groups"

It did not take more than a few hours for the first non-profit and “minority advocacy” groups to hurry out press releases applauding the announced merger intentions of AT&T and T-Mobile.

Winning approval of the merger in Washington will take a full court press by lobbyists and organizations that claim to represent “the public interest,” even if the merger will likely raise prices for the constituents they ostensibly represent.  Too often, these groups also fail to openly disclose they have board members that work for the telecommunications industry or welcome large financial contributions made by one or both companies.  That makes it difficult for the average consumer to discern whether matters of arcane telecommunications policy are truly of interest to these organizations or whether they are simply returning a favor to the companies that write them checks.

The Communications Workers of America, the union representing many AT&T employees, has been applauding the announced merger on their website, “Speed Matters.”  It’s hard to blame the union for supporting the merger — it opens the door to union membership for T-Mobile employees.  The union does a good job representing their workers, and their interests often are shared by consumers.  For instance, the CWA has smartly opposed Verizon landline sell-0ffs to third party companies, which have tended to bring bad results for ratepayers.  But their website does trumpet some sketchy organizations not well known outside of the dollar-a-holler advocacy industry.

Take “The Hispanic Institute” (THI).  This obscure “group” chose a name for itself suspiciously similar to the much larger and more prominent National Hispanic Institute.  That’s where the similarity ends, however.

The Hispanic Institute believes the AT&T and T-Mobile merger will bring harmony and joy to the Latino community clamoring for mobile broadband:

“The proposed merger of AT&T and T-Mobile will move us closer to universal mobile broadband deployment. When we consider how essential mobile technology is to empowering communities, we conclude that this proposal is good for Hispanic America. It provides an opportunity to amplify the growth in mobile broadband adoption by both English and Spanish speaking Americans.”

AT&T regularly contributes substantially to Urban League programs.

In fact, the only thing most Latinos will find after the merger is higher prices for reduced levels of service.  T-Mobile’s aggressive pricing and innovative (and sometimes disruptive) packages are well-known in the industry, and they are a frequent choice of budget-minded consumers, including many members of the Latino community.  It does little good to expand mobile broadband service that many cannot afford.  Reduced competition always leads to higher prices, a fact of life missed by THI.

Perhaps THI’s misguided support for the merger was an aberration.  But then again, maybe not.  The group also promotes a pharmaceutical industry-funded scare site designed to convince Americans that prescription drugs imported from Canada are dangerous and unsafe.  Calgary is apparently the new Calcutta, when you have a vested interest in stopping people from saving a fortune on their medication by buying it north of the border.

Perhaps that was also just “an error in judgment.”  But little doubt remains after you read their spirited defense of the bottom-feeding payday loan industry (even though they claim they are not.)

Friends of Big Pharma, Payday Loan Gougers, and A Bigger AT&T are no friends of mine… or yours.

The Urban League is a regular recipient of AT&T cash.  In return, the group is no stranger to advocating for the phone company’s political agenda.  One of their chapters belongs to the ultimate in Astroturf groups — Broadband for America.  How many organizations cautiously optimistic about a telecom industry merger would rush out a press release about it?  They did:

“The pending merger of AT&T and T-Mobile USA holds potential opportunity for an expanded, diverse workforce … We plan to carefully observe the upcoming regulatory process and look forward to a transition that is guided by AT&T’s commitment to diversity and equal opportunity. We have every reason to be optimistic,” said Marc Morial, president and CEO.

Speed Matters somehow forgot to mention AT&T is a major member of the Alliance they quote in support of the merger.

Of course he does.

Then there is the ultimate in echo chamber advocacy courtesy of the Alliance for Digital Equality:

“The merger of T-Mobile USA and AT&T will enable rapid broadband coverage for most of the nation — including many lower-income and rural communities that have been largely underserved — through an expanded 4G LTE deployment to 95% of the U.S. population within six years. This is a huge step forward in making President Obama’s vision of reaching 98% of Americans a reality.

“What’s more, wireless broadband has shown tremendous promise in bringing our communities of color into the digital age — something that an increasing number of studies and reports have shown we have got to improve upon if we are going to bridge the digital divide that exists in this country. This merger puts the right technologies into the communities that need it, at the right time… and at the right price.” — Julius Hollis, Chief Executive Officer

Missing from these glowing words is an admission that AT&T is a major member of the Alliance.

It’s the coalition of the willing to sell out consumers.

Consumer Reports underlines the point: America's worst cell phone company promises America better things by merging with America's second-worst cell phone company. Is this a good deal for America or just for AT&T and T-Mobile?

This morning’s announced deal of a merger between AT&T and T-Mobile is what antitrust rules were made to prevent.  This bold merger would not have even been attempted had the two companies believed they could not get it past supine regulators and members of Congress who receive substantial contributions from AT&T.

Ordinary consumers can see right through AT&T’s business plans, so why can’t our regulators and policymakers?  In a word, money.

The FCC’s own National Broadband Plan delivers clear warnings that the growing concentration in the wireless industry will hamper better broadband in the United States, not enhance it.  Reduced consumer choice and competition takes the pressure off carriers to innovate, expand, and keep wireless costs under control.

Reducing the number of players on the field delivers countless benefits to carriers and their shareholders.  But for consumers, there is nothing but a few promised spoonfuls of sugar to help the industry’s agenda go down — with vague promises of better rural service, faster wireless data, and new handsets.

In a truly-competitive marketplace, Washington regulators need not exact promises of better service from mega-sized carriers: the much-vaunted “free market” would deliver them naturally, as competitors invest and innovate to succeed.  But that kind of market is increasingly disappearing with every merger.

Nowadays, officials at the FCC and Justice Department are willing to accept deals if they promise some token bone-throwing, at least until the company lobbyists inevitably manage to get those conditions discarded during the next round of deregulation — cutting away rules that “tie the hands” of companies picking your pockets.

Money makes the impossible very possible, and AT&T intends to spend plenty to earn plenty more down the road.  Let’s review how the game will be played, and what you can do to stop it.

The “Free Market” Crowd Sells Out

Randolph May is willing to sell robust competition down the river if it means he can get 4G network access faster.

When the chorus of capitalism capitulates on the most important formula for success in a deregulated marketplace — robust competition on a level-playing field, we know there is a problem.  Take Randolph May.  He works for the free market think tank Free State Foundation.  Watch what happens when even the most ardent supporter of ‘letting the marketplace sort things out’ twists and turns around admitting America is facing a future duopoly in wireless:

“In an ‘idealized’ marketplace, the more competitors the better. But the telecom marketplace is not an idealized market. It is one that requires huge ongoing capital investments to build broadband networks that deliver ever more bandwidth for the ever more bandwidth-intensive, innovative services consumers are demanding,” he says.  “My preliminary sense is that the benefits from the proposed merger, with the promise of enhanced 4G network capabilities implemented more quickly than otherwise would be the case, outweigh the costs. Even after the merger, the wireless market should remain effectively competitive with the companies that remain.”

That’s a remarkable admission for someone who normally argues that marketplace fundamentals are more important than individual players.

May is willing to sell a robust competitive marketplace down the river in return for 4G — a standard AT&T is hurrying to bring to its customers threatening to depart for better service elsewhere.  With this deal, disgruntled customers will have one fewer choice to turn to for service.

Make no mistake: a free, unregulated wireless marketplace requires more than two national carriers and a much-smaller third (Sprint) to deliver real competition.

The Dollar-A-Holler Phoney Baloney Astroturf Groups

AT&T will waste no time trotting out comments from non-profit groups essentially on their payroll who will peddle filings with regulators promoting AT&T’s business agenda in return for substantial sized donation checks to their causes.  The usual suspects, which include groups serving minority communities, will tout the “wonderful things” the deal will bring to their constituencies.

Already out this morning is this curious remark picked up by Broadcasting & Cable from Debra Berlyn, who claims to represent consumers as part of a group called the Consumer Awareness Project:

Beryln's consumer group has a few problems: It's not a group, it doesn't represent consumers, and she is an industry consultant.

“Wireless acquisitions over the course of the past decade have not led to price increases for consumers and, in fact, the statistics show that prices have declined during this period. While some consumer voices have focused on the loss of a wireless competitor in relation to AT&T’s recently announced plans to acquire T-Mobile USA, the news for consumers should be seen in another light with a focus on the benefits that this merger can bring to consumers across the U.S.”

Perhaps the first goal of any group trying to make consumers aware of anything is to actually have a website associated with your group.  The “Consumer Awareness Project” forgot this important first step, but we eventually found the “group” using a re-purposed web address, “consumerprivacyawareness.org,” and note they have only recently become significantly active on this issue, now peddling AT&T’s agenda with gobbledygook.

When Berlyn isn’t pounding out prose to benefit AT&T, she is making guest appearances in Comcast’s corporate blog or being a favorite source of industry-connected groups like the nation’s largest broadband astroturf effort, Broadband for America.

In fact, after some digging, one learns there are no actual consumers involved with the “Consumer Awareness Project.”  The entire affair is actually a project of a Washington, D.C., lobbying-consultancy firm — Consumer Policy Solutions, which counts among its services:

• Federal advocacy: Legislative and regulatory advocacy work before Congress, federal agencies and the administration.
• State and local advocacy: Policy development and implementation and grassroots mobilization.

That is the very definition of interest group “astroturf.”  But my favorite section of this company’s website is the promise paying clients will get Berlyn’s experience “in communicating complex language and issues into easily understandable, applicable messages for consumers.”

Such as: AT&T’s merger with T-Mobile is good for consumers, even if it raises prices and reduces competition.

I’m sold.

The Cowardly Lion & A Myopic Justice Department

FCC Chairman Julius Genachowski's cowardly cave-ins set the stage for AT&T's bold merger move, believing they have government oversight under their control.

The first hurdle this deal will need to overcome is among Washington regulators, most of whom are either way over their heads understanding the implications of super-sized mergers like this or are simply terrified of going out on a limb with a multi-billion dollar company that can create headaches for your agency in Congress.

AT&T will sell this deal within a very limited context of the deal itself, and urge regulators to ignore “emotional” issues about the increasingly concentrated wireless marketplace.  Verizon did much the same with its acquisition of Alltel — urging regulators to ignore the fact they were removing a player in the market and focus instead on the benefits Verizon’s size and scope could bring to existing Alltel customers.  Of course, in many areas Alltel served, customers were free to do that themselves simply by signing up for Verizon service.

Dan Frommer, a senior staff writer at Business Insider, delivers a TripTik outlining AT&T’s roadmap to deal approval:

“AT&T believes its experience with regulatory review has given it a good picture of what’s realistic and what isn’t from an approval standpoint, and believes it can frame the deal in a way that won’t be rejected,” he writes.  “AT&T says the Feds are looking at “the facts” — hinting that they aren’t acting based on emotions or politics. Though, no doubt, there will be plenty of jockeying in the press and among lobbyists from those on both sides of the deal.”

But Frommer wades in too deep and drowns his credibility claiming the combination of some of the largest wireless carriers in the country still leave plenty of competitors.  Besides Verizon, there is just a single national player of consequence remaining – Sprint.  MetroPCS and Cricket deliver service in urban areas in selected cities. US Cellular, Cellular South, and several others deliver service to an even smaller number of communities, entirely dependent on large carriers for roaming coverage.

The Justice Department’s typical solution to antitrust concerns is to force limited concessions like divestiture of assets in particularly concentrated markets.  In most cases, companies agree because those assets are often redundant and would be sold anyway, or cover such a limited area as to be inconsequential to the greater deal.  Former Alltel customers found themselves traded first to Verizon and then divested away to AT&T.

Most of the customers divested away from T-Mobile’s future with AT&T will likely end up switched to Verizon, hardly a success story for increased competition.

FCC lawyers will likely review this transaction with a narrow scope, too.  Instead of contemplating the implications of the inevitable duopoly that could result, the FCC will likely find itself negotiating over individual details of the deal without considering an outright rejection of it.

AT&T admits they are on a mission to monetize data usage.

At the FCC, Julius Genachowski’s performance as a regulator has been nothing short of a disaster, pleasing almost nobody in the process.  His “cowardly lion” approach to regulation has delivered rhetoric without substance and a whole lot of broken promises.  Genachowski has proven to be unable to stand up to the companies he is tasked with regulating.  With two Republican commissioners likely to favor the deal and Michael Copps almost certainly in opposition, it will be up to Julius Genachowski and Mignon Clyburn to vote this deal up or down.

But regulators are also responsive to Congressional pressure and dramatic backlash by consumers, such as what happened just a few years ago when big media companies lobbied to relax media ownership rules.  When consumers (and voters) revolt, regulators will change their tune… and fast.

What You Can Do

Consumers can make a difference in what comes next for T-Mobile and AT&T.  The first step is to make this an issue with your member of Congress and two senators.  Let them know you have profound concerns about another huge wireless merger.

There is simply no tangible benefit that can outweigh the loss of another important competitor in the American wireless marketplace.

AT&T’s bottom-rated service will not become any better acquiring the second-to-last rated service.  The company must invest in its network to compete, not simply pick off competitors to save money.  The loss of T-Mobile would mean only three national carriers, and it is highly unlikely Sprint would be able to withstand pressures on Wall Street to merge themselves away, probably to Verizon.

Tell your elected officials the AT&T/T-Mobile deal is a consumer nightmare and should not be approved under any circumstances.

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/Bloomberg Glenchur Says Regulatory Risk Substantial for ATT 3-21-11.mp4[/flv]

The always optimistic Bloomberg News says AT&T’s deal could still get past regulators, but there is a substantial risk as well.  Consumers can help make that risk unsustainable by telling the Obama Administration and Congress better broadband does not come from a duopoly, no matter how well-intentioned.  (4 minutes)