A broad range of state and national consumer groups today came together to announce their opposition to the proposed merger between SBC Communications, Inc. and Ameritech Corporation. Groups representing an array of geographically and institutionally diverse entities, including organizations from the major states served by SBC and Ameritech, released a jointly prepared white paper entitled, The Consumer Case Against the SBC-Ameritech Merger. The release of the white paper serves as a call to state and federal regulators to stop the merger.
Bigger companies mean fewer choices and higher prices for consumers.
It is difficult to see how Californians benefited from SBC's acquisition of Pacific Bell. If the FCC and the DOJ actually approve this merger, consumers end up with the worst from both worlds-a major local competition alternative is eliminated and customers end up having to absorb the costs of the merger. The acquisition cost for Ameritech could well exceed the book value of the company. SBC's merger application is so inherently flawed that no combination of conditions would be sufficient to protect the public interest against the anti-competitive consequences. The merger poses unique regional problems because the greater the market power at the regional and national levels, the less the likelihood that competitors will break through in the local market and the greater the likelihood that market power will extend into related markets.