Critics of AT&T’s proposed acquisition of T-Mobile USA are questioning the motives behind a letter sent Tuesday to President Obama voicing concerns about the Justice Department’s lawsuit aimed at blocking the deal between the nation’s second and fourth largest wireless carriers.
Public Knowledge noted that the letter led by Rep. Pete Olson, R-Texas, was sent on the same day that some AT&T lobbyists were circulating invitations to a fundraiser for the lawmaker. While not hosted by AT&T, the Washington fundraiser for Olson set for Thursday is being billed as a “Telecommunications Industry Lunch,” according to the invite obtained by Public Knowledge. Political action committees that want to help host the event are asked to pay $2,500, while PAC attendees are asked to contribute $1,000 and individuals who want to attend must pony up $500.
Lawyers for AT&T and the Justice Department head to court on Wednesday for the first hearing in the case over the proposed $39 billion merger. Judge Ellen Huvelle is expected to limit the meeting to logistical issues about how she wants the case to proceed. She may announce the date of the trial.
"Today's House Republican letter is yet another indication that AT&T's Congressional support for its takeover of T-Mobile comes at a price,” Public Knowledge President Gigi Sohn said in a statement. “In this case, the total is close to $1,000,000. That's how much the company gave to members of Congress who signed the letter and who are willing to allow their constituents to be subjected to a wireless market controlled by only two huge companies.”
The letter to Obama signed by about 100 House GOP lawmakers voices concerns that the Justice Department lawsuit filed last month will discourage job creation at a time when both the administration and Congress are looking for ways to spur economic growth.
“If your administration is truly committed to creating jobs, you should let the private sector do so, not erect impediments to job creation based upon a flawed understanding of the competitiveness of the U.S. wireless market,” the letter said.
An AT&T spokesman did not have any comment on the issue. A spokeswoman for Olson denied there was any connection between the letter and the fundraiser, which she was quick to note, is not being hosted by AT&T and was scheduled long before the letter was drafted. She did say that AT&T, which is based in Olson’s home state of Texas, has contributed to the lawmaker in the past.
The GOP letter comes a week after a group of 15 House Democrats also voiced concerns with the Justice lawsuit and urged the Obama administration to reach a settlement that would allow the AT&T-T-Mobile deal to go forward.
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