Dialing For Dollars With AT&T and T-Mobile Merger

Washington D.C. – Ron Busby, President of The United States Black Chamber

Job creation, economic growth, and creating a strong business environment are frequently cited as the most important issues facing our communities. This is not surprising, given the fact that we have a national unemployment rate of 9%, with the impact of joblessness in Black America standing at nearly twice the rate for other affected populations.

Despite these statistics, there continues to be reasons for some level of optimism. The tech sector continues to report strong growth numbers despite a sluggish economy and African-American consumers’ reputation as “early adopters” of emerging technologies positions us well. Our consumption patterns are driving the growth of smart-phone sales. Additionally, our use of mobile Internet plans is fueling another surge in the telecom sector.

These facts have us “smack-dab” in the middle of the proposed AT&T and T-Mobile merger. Because of the importance mobile and wireless technology plays in the economy and in our personal lives, you may have heard conflicting and controversial statements about the planned merger. I’d like to address the facts of this merger and how I think it fits into the overall economy, Black businesses, and our communities.

First, regarding the issue of coverage and service, the merger can really benefit mobile users. Combining the two networks will enhance coverage capacity and the ability to handle much more data and voice calling. As consumers and businesses increasingly require mobile service, this helps the wireless industry meet market demand through efficiency. At the same time, this helps to ensure that demand for business mobile apps, devices, and accessories can continue to grow.

Second, the merger can help deliver better access to high speed Internet service. 4G LTE technology represents the newest wave of high speed Internet service delivery. AT&T has announced that they will build out their network to 97% LTE coverage, allowing 55 million more Americans to have access to high speed broadband. Let me repeat that… 55 MILLION! Members of the US Black Chamber and business owners in general are increasingly relying on the Internet for education, training, business development and secure, direct contact with customers. Knowing that we are on the budding cusp of a 55 Million potential client increase for business is pretty exciting.

Perhaps as important from the USBC perspective, AT&T has a strong history of support for Black chambers of commerce across the country. In virtually every market served by both a Black chamber and AT&T, there is a longstanding relationship of support for our chambers and contracting opportunities with our member businesses. Our utilization of AT&T telephone products and service plans plays no small role in cementing these relationships.

President Obama has routinely suggested that broadband access is a critical issue facing the country. He recognizes the economical, cultural, and social benefits universal coverage offers to our society. Last year he stated “Just as past generations of Americans met the great infrastructure challenges of the day, such as building the Transcontinental railroad and the Interstate highways, so too must we harness the potential of the Internet. Expanding broadband across the nation will build a foundation of sustained economic growth and the widely shared prosperity we all seek.” This merger harnesses the same potential that he spoke of and stands to make America’s nationwide broadband infrastructure the most powerful platform for economic growth and prosperity in the world. We cannot allow politics and partisanship to rob us of the opportunity at hand, just as AT&T cannot fail to recognize the value of African American consumers of their products and African American vendors, suppliers and contractors that contribute to their growth as an enterprise.

An even greater benefit is that AT&T has pledged to spend $8 billion dollars of private capital to build the infrastructure needed to put the new nationwide network in place. This is an American company, investing their own money into our communities, businesses, and workforce. At a time when jobs and investment are critical, the Economic Policy Institute estimates that this investment alone will create 55,000 to 96,000 jobs. In fact, Deloitte has estimated that the total investment in 4G coverage by all wireless provides can lead to 371,000 to 771,000 jobs across the country.
Today, jobs and economic growth are at a premium. As you can see, there are private-sector and market-based ways to create thousands of jobs, strengthen small business, invest in the foundation of new innovation, AND support the valuable work performed by Black chambers across the country. Our communities desperately need solutions to better our local economies. Without question, the AT&T and T-Mobile merger is definitely a step in the right direction.

Find out more at http://usbci.org/