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Former congressman helps Internet alliance push for merger

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The proposed merger between AT&T Inc. and T-Mobile USA Inc. has hit a roadblock, but the deal would provide an enormous boon for President Barack Obama’s plan to deliver broadband service to 98 percent of the country, one group says.

Former Democratic Congressman Rick Boucher was in Des Moines recently to raise awareness on behalf of the Internet Innovation Alliance (IIA), of which he is the national chairman. The IIA, which is a coalition of business and nonprofit organizations, is pushing for a strategy to improve wireless broadband service nationwide, a large part of which involves supporting the merger between AT&T and T-Mobile.

AT&T asserts that the merger, which would create the largest wireless carrier in the country, would allow the resulting company to provide broadband coverage to 97.3 percent of the nation’s population.

“One company, which is private and not relying on government funds, can almost achieve the goal of 98 percent in five years,” Boucher said. “The merger between AT&T and T-Mobile is a no-brainer.”

The Department of Justice has filed a federal lawsuit, which was joined by seven states, to block AT&T’s bid, saying the deal would leave consumers with fewer choices and higher bills. Boucher said he disagreed with the decision to file the suit.

He pointed out that past mergers – such as Verizon Wireless’ acquisition of Alltel Corp. in 2008 – have been followed by lower prices. That’s not necessarily because of the consolidation, but he expects history to repeat itself and for the merger not to have a negative impact on prices.

Boucher also pointed out that after the proposed merger, there would still be five or more providers of wireless service in 18 of the 20 largest cities.

“The arguments that it’s anti-competitive I don’t think stand up in this instance,” he said. “The benefits of it are so enormous in terms of broadband deployment that it would make sense for policy-makers to take every reasonable step to make sure this merger happens and we get broadband benefits.”

AT&T officials said in a May interview with the Business Record that the merger would allow it to expand 4G LTE broadband coverage throughout the state.

In addition to backing the merger, the IIA is supporting reform for the Federal Communications Commission’s Universal Service Fund to allow for funds to go to broadband deployment. It is also advocating that the federal government auction off extra spectrum, or wireless capacity, from companies that have more than they need to allow other companies to bid on it.