Congress and the FCC are to Blame for Creating a U.S. Communications Landscape Dominated by Mega-media monopolies

The expected acquisition of Bell South by AT&T (formerly SBC) reflects the strategy by the country's largest cable and phone companies to build monopoly-styled businesses in both the broadband and interactive television markets. "AT&T wishes to be lord of the digital domain, able to impose a raft of tolls, fees and what they term 'monetization' strategies for the Internet--whether it comes to us via wires or wireless devices," explained Jeff Chester, CDD's executive director. This proposed merger is the direct result of a recent FCC decision that eliminated long-standing safeguards for the Internet. AT&T can now operate its broadband platform (as well as its new digital TV service) as a privately controlled highway. Instead of the Internet reflecting what the federal courts not long ago called "the most participatory form of mass speech yet developed," it's now threatened to be reduced to what AT&T called its private "pipes."

"AT&T's ambition knows no bounds and places the future of the broadband Internet at risk," said Chester. "AT&T believes that it can engage in a telecommunications power grab because of the largely pro-business attitude of the Bush administration and the FCC. But they are sadly mistaken if they believe there won't be intense opposition to this deal from all those who care for the Internet's democratic and competitive future," he added.

Since the 1996 Telecommunications Act (ten years old last month), there has been an unprecedented wave of mergers and consolidation in the telephone, cable, broadcast radio and television and newspaper markets. Instead of the competition promised by the cable and phone industries to Congress, consumers and citizens have faced higher rates for service and a critical loss of diverse editorial perspectives. "Americans deserve to be forewarned," declared Chester. "If we permit more takeovers, such as AT&T and Bell South, we will soon witness a further shrinking of the number of conglomerates dominating our local and national media. Super media monopolies will emerge, as the cable and phone companies that control vast expanses of online communications seek also to acquire newspapers, broadcast stations, and TV networks. Eventually, the owners of the so-called competing broadband Internet wires of the cable and telephone industry will likely consolidate as well--a merger between Comcast and Verizon, for example, or a Time Warner with AT&T. Instead of having a communications environment that promotes freedom, creativity, and expression, we could witness an ever-dwindling number of major corporations controlling an unthinkable array of the most powerful media outlets.

"AT&T will claim that this merger is necessary to ensure "broadband deployment," a measure in the lobbyist-written 1996 Telecommunications Act. But what we need foremost is broadband democracy," explained Chester.