Press Release May 6, 1999	Contact: Gene Kimmelman Consumers Union Washington, DC Office

Statement of Gene Kimmelman, Co-Director of the Washington Office of Consumers Union,

Publisher of Consumer Reports
Regarding the
Proposed Merger of AT&T and MediaOne

"AT&T's proposed buy-out of MediaOne is dangerous for consumers. Under this plan, AT&T would gain dominance over approximately 60 percent of the cable TV market, control dozens of the most popular TV channels and dominate high-speed access to the Internet. AT&T gets this bonanza simply by saying it may someday also move in to compete with local telephone service providers.

"Where there is no competition in the marketplace and only the promise of future competition, consumers see price go up.

"We will seek to have this merger blocked by antitrust officials and at the Federal Communications Commission. Despite the rhetoric about consumers being given more choices under this deal, the only choices consumers will have is to do business with a mega-media/telecommunications company or do without some important services.

"Congress promised consumers would see lower prices and more competition when it deregulated the telecommunications industry in 1996. In fact, we've seen companies merging instead of competing and raising prices when they do. This merger mania must be stopped. Congress must step in and take immediate action if it intends to deliver on its promise of real competition and lower prices for consumers. "