Three black mayors take lonely stand on AT&T/BellSouth merger (updated November 5, 2006)

As the FCC struggles for consensus on AT&T's proposed acquisition of BellSouth, one aspect of the public filing record stands clear: minority advocacy groups overwhelmingly support the union.

The National Association for the Advancement of Colored People (NAACP), Jesse Jackson's Operation Rainbow Push, and other regional civil rights groups have all submitted statements on behalf of the $67.1 billion deal, which will create an entity that serves up almost half the telephone land lines in the United States.

"Our mission is to ensure the political, educational, social, and economical equality of rights of all persons and to eliminate racial hatred and racial discrimination," the NAACP wrote to the FCC on October 26th. "This merger has the potential to contribute to the achievement of our mission by reducing the economic and technological barriers confronting people living in underserved rural and low income communities."

But three prominent inner city mayors don't see it that way.

Two days before the NAACP's filing, Ray Nagin of New Orleans, Kwame Kilpatrick of Detroit, and Eric Perrodin of Compton submitted comments, for the second time, expressing concerns about AT&T and BellSouth's performance in inner-city areas. The first time they filed, on June 5th, they charged that the proposed merger could "exacerbate the differences in access to telecommunications services based on race, income level, and geography."

Calling themselves the Concerned Mayors Alliance (CMA), Nagin, Kilpatrick, and Perrodin cited studies and newspaper reports suggesting that AT&T redlines minority neighborhoodsâ€”systematically denying or delaying service to low-income ethnic areas. Their comments described these regions as the "last wired and the last hired," and expressed concern that the merger could reduce opportunities for minority contractors.

Their filing also charged that minority neighborhood residents often receive shoddy service from AT&T.

"In deciding whether to approve this proposed merger," the mayors wrote, "the Commission should consider the past practices of AT&T's cable and telephone affiliated companies and impose conditions on the merger to ensure that these illegal practices do not continue."

The NAACP FCC submission, in contrast, takes AT&T at its word. Their statement discloses that they have met with AT&T executives and received the following commitments:

AT&T/BellSouth will offer consumers broadband at a speeds off up to 768 kbps at $10 a month.
As it rolls out services, the new giant will reserve 30% of broadband Internet to low income housing units and rural areas.
AT&T/BellSoutth "will maintain or improve the diversity off its workforce at all levels of the new company."
Opportunities for minority contractors will be given "priority attention."

The NAACP's letter does offer one note of skepticism about the acquisition: the nearly 10,000 estimated jobs that will be eliminated because of the merger. But: "we were heartened to learn that the proposed merger company may reclaim approximately 3,000 formerly out-source jobs," their statement concludes. The civil rights group is joined in this stance by the Asian Pacific Legal Center, Jesse Jackson's Operation Rainbow Push, the National Coalition on Black Civic Participation, and the Urban League of Greater Miami.

But Nagin, Perrodin, and Kilpatrick want the FCC to take a closer look at AT&T's promises. Their latest filing asks the Commission to get more details on that 30% broadband commitment.

"The CMA proposes an agreement that specifically identifies low-income areas in Detroit, New Orleans and Compton and other municipalities for incremental deployment by AT&T/BellSouth," they write, "and establishes definitive goals and timelines for such deployment."

Following the Justice Department's recent approval of the merger, the FCC has repeatedly tried to come to a decision on the proposal. Because Republican FCC Commissioner Robert M. McDowell previously worked as a telecom lobbyist, he has informally recused himself from the decision, forcing FCC Chair Kevin Martin to reach consensus with the agency's two Democrats on the matter.

The FCC listed the controversial issue as item four on its Friday, November 3rd, Open Meeting agenda, but removed the matter from consideration at the last minute.