Group Challenges Comcast’s AT&T; Bid

Opponents of Comcast Corp.’s planned $72-billion purchase of AT&T; Corp.’s cable television business are taking their case to local regulators to get municipalities involved alongside federal reviews.

The Consumer Federation of America asked officials in Cambridge, Mass.; Dallas; Montgomery County, Md.; and San Francisco to oppose the acquisition, research director Mark Cooper said. Cable companies have to win approval from local authorities to operate in a given area.

A larger Comcast will lead to higher rates and poor service, the consumer group says. Comcast says it will save money with the acquisition and boost sales, allowing it to expand programming and services while limiting rate increases for basic cable television.

“Quality will deteriorate as call centers move farther away,” Cooper said.

The Washington-based Consumer Federation is made up of 280 consumer groups, including the American Assn. of Retired Persons, and represents about 50 million members, Cooper said. It plans to file complaints with regulators in other cities, he said.

The Justice Department and Federal Communications Commission are reviewing the deal between New York-based AT&T; and Philadelphia-based Comcast. The new company would have 22 million customers in more than 40 states.

Shares of Comcast fell 15 cents to $30.10 on Nasdaq. AT&T; fell 20 cents to $13.50 on the New York Stock Exchange.

Comcast spokeswoman Karen Dougherty Buchholz and AT&T; spokesman Jim McGann declined to comment.

The companies will need to spend time and energy resolving consumer complaints and may need to agree to some conditions demanded by local regulators, said Jimmy Schaeffler, chief executive of research firm Carmel Group.

“It’ll just be a nuisance,” he said. “They may have to give up some concessions.”

The effort probably won’t block the combination, said Schaeffler and Maria Kovacs, an analyst at Commerce Capital Markets Inc.