Sen. Bernie Sanders (I-VT) and Sen. Elizabeth Warren (D-Mass.) co-authored a letter accusing giant telecom companies of using monopoly tactics to cheat more money out of customers, reported the Huffington Post. The letter was addressed to Federal Communications Commission Chairman Tom Wheeler, a former telecom lobbyist.
The letter stated that massive company mergers have left 60 percent of American customers no choice in selecting service providers. By eliminating competition, telecom companies can charge as much as they want and customers can do nothing.
“As the telecommunications industry becomes increasingly concentrated, this lack of choice has resulted in huge price increases and often poor service for consumers,” the senators wrote. “There are now de facto telecommunications monopolies throughout the United States.”
Time Warner and Charter Communications have been negotiating a merger, and Sens. Sanders and Warren said the merger would only make things worse. According to the senators, “recent Time Warner price increases suggest the cable giant is already insulated from normal market pressures.” Currently, telecom companies charge high fees for anything from basic customer care to equipment rentals. Some companies even mandate its customers to buy or rent equipment from the company.
Big time mergers that create monopolies provide no incentive for companies to give customers quality service and competitive pricing, said the senators. This is a huge problem. These capitalists play the free market card any chance they get. However, they take strenuous action to eliminate that free market to boost their profits. Considering Wheeler is a sweetheart of the telecom industry, it’s likely he will ignore the truth.