Skip to comments.DoJ targets AT&T: The story behind the story
Posted on 08/31/2011 11:50:03 AM PDT by markomalley
Today it was announced that the Department of Justice will attempt to block AT&Ts acquisition of T-Mobile. The deal is needed for technical and regulatory reasons to allow AT&T to compete in the 4G wireless market with Verizon, Sprint/Clearwire, and with the upcoming competitor LightSquared. So why is the Department of Justice calling it bad for competition?
Enter R. Gerard Salemme. Its not a well-known name, but its been an important one in the Obama administration. Its also a name that often comes up in the ventures of one Craig McCaw. Craig McCaw is an equal opportunity donor who gives to anyone who looks likely to win, including Gore 2000, Bush 2004, and both sides in 2008.
That $2,300 donation to Obama sure is paying off.
Theres a complicated web here, but Ill do my best to explain it. R. Gerard Salemme is a man who has moved from one company to another in recent years, co-founding Eagle River, and working at XO, Clearwire, and now ICO Global Communications. What those firms all have in common is that theyre also firms invested in or founded by Craig McCaw, whos Salemmes business partner at Eagle River, and has often taken leadership roles in these firms. In particular, McCaw founded Clearwire, which operates a 4G wireless network.
Craig McCaw also took over Nextel, shaped it up, and sold it off to Sprint. Sprint Nextel currently owns a majority of Clearwire.
Where does Obama come in? In 2009, Salemme took time off from his job at Clearwire to join the Barack Obama transition team. One project of his was digital television transition issues, where he promoted the famous delay in the DTV transition. You see, the longer the DTV delay took, the longer it would be before Verizon Wireless could get its hands on the C Block of spectrum to aid its own 4G rollout, in order to compete with Clearwires network.
So the Obama administration took action, dragging its feet on DTV, in a way that hindered 4G competition. Salemmes employer stood to benefit. Big surprise!
The time has now come for Clearwires 4G competition to be expanded further, as AT&T seeks to get ahold of T-Mobiles spectrum, to allow it to roll out 4G wireless to over 95% of Americans. So naturally, the Obama DoJ is seeking to stop that from happening.
Ladies and gentlemen, enjoy your Hope and Change in the new Culture of Corruption.
massive layoffs of the eighties
Oh I was 2004....
You think a 20 billion dollar merger is going to happen and be free from politics? I guarantee ATT/TMobile has insiders on the ground pulling favors trying to get the Administration to look the other way.
This deal goes through and you can all kiss your current phone bill & quality service goodbye.
No, I don’t think it’s going to be free from politics. What a ridiculous notion. I said I dislike the means to the end. I didn’t say I expect it to be any different.
There are a lot of things I don’t like, even knowing that they are going to be the way they are and that very little can be done to change the fact.
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