More falsehoods from AT&T

AT&T does not like the report from the Federal Communications Commission on its takeover of T-Mobile. They don't like that the report was released. Surprise.

So they trot out a smart man to try to cast doubt. Let's look at what he had to say.

"The document is so obviously one-sided that any fair-minded person reading it is left with the clear impression that it is an advocacy piece, and not a considered analysis," Jim Cicconi, AT&T's senior vice president of external and legislative affairs, wrote in a blog post.

Actually, no. The report simply states reasons why FCC staff do not support the merger. The "analysis" is elsewhere. For nine months AT&T filled the atmosphere with falsehoods about how "what's good for AT&T is good for America." FCC disagreed, and said why. That's all.

AT&T claimed acquiring T-Mobile would help the rollout of its 4G LTE network. The FCC agreed with AT&T rivals who argued that AT&T is going to build out its 4G network with or without T-Mobile because of competition. Cicconi denied that, pointing to "sworn declarations" about its 4G LTE plans.

Oh, please. "Sworn declarations?" And we should wait for AT&T to say "Oh, that sworn declaration? Yeah, about that, well, our plans have changed." That's what always happens when the consequences for lying are less than the benefits. Guess we'll see if AT&T will let Verizon be the only company with a nationwide 4G network.

"The report apparently assumes a high enough level of competition exists in rural areas to compel billions of dollars in investment," Cicconi wrote. "Yet the report elsewhere argues that the level of wireless competition in more populated areas of America is so fragile that the merger must be disallowed. At the very least, these conclusions show a logical inconsistency."

Mr. Cicconi is a smart man. So he must be a lawyer to use the word "competition," which means different things in different situations, and claim it only means one thing and the FCC is being inconsistent.

There is nothing inconsistent in saying AT&T will roll out 4G in rural areas with or without T-Mobile, and loss of competition in 99 out of 100 urban markets (where the money is) would be bad for consumers. This is just a tricky trap of language, common to a certain political class.

The FCC says the deal will kill jobs, Cicconi says AT&T has "promised" to create jobs. No. AT&T was going to recoup the $39 billion it was willing to spend on T-Mobile instead of spending $4 billion to build out its own LTE by cutting jobs and raising prices, which it will be able to do in a duopoly with Verizon across most of America. Somewhere there is a document that shows that, an email, meeting notes. Let's find it and send perjurers to jail.

Cicconi says the FCC is hypocritical in saying there is a national spectrum shortage but saying two national companies face "no such constraints." He thinks we're stupid.

Yes, more spectrum is needed for new phone technology for the public good. But the public, as a whole, does not benefit from one company gobbling the spectrum of another. If you agree with his argument, walk into the coffee shop with a dollar in in your right pocket, move it to your left, tell the server you have a dollar in each pocket for a $1.50 cup of coffee, and, of course, you plan to leave a 50¢ tip.

Cicconi says the report lacks credibility, and distorts the facts. We think the report was a good summation of reasons why the merger should not go through, and Cicconi's response validates that conclusion.