Because Money Buys Loyalty, Latino Orgs Support AT&T/T-Mobile Merger

July 2nd, 2011 · 3 Comments

Webmaster’s note: 7/5/11 It has been brought to my attention that NCLR is not taking an official position on this merger, although Janet Murguia’s words were used in the letter linked below from a group of Latino organizations (Hispanic Technology and Telecommunications Partnership), who are in favor of the merger. Some may perceive Murguia’s praise of AT&T and its diversity efforts as greasing the wheels for this merger. In my view, NCLR could have made a stronger statement about the consequences of having fewer mobile providers (fewer choices) for American consumers. 

If you have been following the news about the AT&T/T-Mobile merger, you are probably aware that AT&T will control nearly half of the cellphone market if the proposed merger goes through. And you know that less choice is just wonderful for the consumer, right? If you don’t like AT&T, you would just be left with Verizon and Sprint as alternatives.

According to Reuters:

“Now holding 27 percent market share, AT&T would gain a 44-percent foothold if the T-Mobile merger is approved by the Federal Trade Commission.

At present, only four companies control 90 percent of the U.S. cellphone market. With a takeover of T-Mobile, AT&T would face off against Verizon and Sprint for dominance, perhaps even triggering a further consolidation of the remaining two smaller players. Would this be good for cell and broadband users?

There’s no guarantee that economies of scale would trickle down to consumers. After all, T-Mobile’s aggressive pricing forced AT&T to offer better plans. Without a strong competitor, prices rarely drop, although that’s not how AT&T is pitching the deal.”

The fearless Latino organizational leaders have come out in support of the merger including the National Council of La Raza and LULAC. And this largely has to do with the amount of “support” NCLR and LULAC receive from AT&T.

However, there are some smaller organizations pushing back against this merger, and one of them includes the National Hispanic Media Coalition. You can read the NHMC’s statement on the merger here. But I just want to highlight this part about costs:

“Latinos pay more for mobile service than any other demographic group. Latinos, on average pay $102 a month on T-Mobile, compared to $120 a month on AT&T, $117 on Sprint and $115 on Verizon. 25% of T-Mobile customers are Latino, and many of them choose T-Mobile because of its affordability, flexibility and excellent customer service.”

You can contact the FCC and your congressional representative to express your support or concern about this proposed merger. But share your thoughts here as well. Do you think that Latino organizations have more to gain in telecommunications consolidation? Or do the benefits that the organizations receive outweigh the possible added costs to the individual consumer?

Tags: community organizing and activism · Economics · LULAC · National Council of La Raza

3 responses so far ↓

  • 1 Chicano future tense // Jul 7, 2011 at 1:46 pm

    LPB hit the nail right on the head with the title..

    Because Money Buys Loyalty, Latino Orgs Support AT&T/T-Mobile Merger

    You know there is also another word which describes someone who sells themselves for money…that word IMHO comes pretty damn close to the truth of the matter in the case of these two bit so-called establishment “Hispanic” poverty pimp organizations full of obsequious third rate paper pusher
    bureaucrats,sycophantic worms,petty opportunists,these people who like parasitic fleas infest themselves on the Latino body politic making their livelihoods and careers benefiting from Latino misery.

    The word I refer starts with a W and ends with an E….”WHORE”

    That’s right those organizations who turn tricks for At&T et al ..
    opportunists who sell themselves in our name,who are nothing but shameless corporate whores
    who turn tricks for corporate funding.

    These Latino orgs will continue to prosper and succeed as long as Latinos remain ignorant and backwards politically,they will have their little careers secure.But God willing the day will arrive when Latinos will become aware and develop a higher political consciousness being able to see through the veneer of these shameless Latino hustlers poverty pimps,parasites..

    Once Latinos figure these parasites out able to see through their little hustle and con-game,watch those “smiling”..(you ever notice how these worms always have that nauseating s..t eating grin on their faces after getting payed for their tricks)…. petty Hispanic careerist fleas panic and run for the hills like the gutless bureaucratic cowards they are..

    We need to kick those pack of blood sucking third rate no-talent “funding whores” out of their air conditioned offices,

    I don’t know about you,but they disgust me..

  • 2 According to former HUD Secretary Henry Cisneros, AT&T-T-Mobile Merger May Help Improve Latino Drop Out Rate // Jul 11, 2011 at 1:20 pm

    […] this opinion piece by Cisneros was written to push the momentum that many Latino organizations have helped propel in support of this planned merger. Improving educational outcomes has more to do with promoting […]

  • 3 TopCat // Jul 24, 2011 at 5:18 pm

    I guess we can add Henry Cisnero’s name to that long list of Latino political whores exploiting the Latino community for Corporate American largesse. Since when do corporate mergers benefit the consumer? Is the Latino community really that ignorant and gullible to take Henry Cisnero’s seriously?

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