FCC Wants Further Scrutiny of AT&T T-Mobile Merger

November 23, 2011 -

AT&T is finding that making the $39 billion takeover of T-Mobile USA a reality will be an uphill battle. The mobile broadband operator expected the FCC and other U.S. government agencies to green light the merger, but this week FCC Chairman Julius Genachowski asked commissioners to send the proposal to a judge for a hearing and further scrutiny. FCC staff came to the conclusion that the proposed merger would "significantly diminish competition" and lead to job losses.

During a press briefing yesterday, FCC officials also disputed AT&T’s claims that the merger would create new jobs and "significantly spur" the expansion of wireless high-speed Internet.

Analyst like Jeffrey Silva at Medley Global Advisors believes that AT&T will have a long legal battle on its hands if it wants to salvage the deal.

"The FCC and DOJ work hand in hand," Silva told Bloomberg in a telephone interview. The FCC’s move "shows that AT&T has made no progress in the negotiations with the DOJ."

"It is yet another example of a government agency acting to prevent billions in new investment and the creation of many thousands of new jobs at a time when the U.S. economy desperately needs both," Larry Solomon, an AT&T spokesman, said in a statement.

While a trial is probable commissioners have yet to vote on Genachowski's recommendation for review by an agency judge. The administrative law judge presiding over the hearing delivers an initial verdict that is then voted on by agency commissioners.

Herbert Hovenkamp, a professor and antitrust expert at the University of Iowa College of Law, tells Bloomberg that the FCC's version of a trial is "farther-reaching than a court trial."

Andrew Lipman, a Washington-based partner with Bingham McCutchen LLP, said in an interview yesterday that this action is the first time since 2002 that the FCC has moved to bring a communications merger to a hearing before an agency judge.

"A hearing could go on for six to 12 months," Lipman said. "It’s certainly a significant obstacle and roadblock."

But the chances of AT&T simply giving up on the merger plan is unlikely because it will cost them a lot of money either way. AT&T has agreed to pay Deutsche Telekom a breakup fee of $3 billion as well as spectrum if the deal falls through for a total of as much as $7 billion.

"Too much money remains at stake for it to concede defeat and drop the deal," Andrew Gavil, an antitrust professor at Howard University School of Law in Washington, said in an interview. "They’ve locked themselves in to take it to the mat."

We will continue to follow this story as it develops. Source: Business Week

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Re: FCC Wants Further Scrutiny of AT&T T-Mobile Merger

Funny to watch the FCC pretend to care about questioning the merger.

 
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Andrew EisenPM - Yep, that's the one.03/06/2015 - 12:53am
TechnogeekBest case, it was some marketing douchebag who thought they could pander to both sides at once.03/06/2015 - 12:49am
TechnogeekAlso, this was the mistake tweet: http://i.imgur.com/4eLWNHx.jpg03/06/2015 - 12:48am
TechnogeekBecause nothing says "open, diverse gaming community" like buddying up with Breitbart.03/06/2015 - 12:47am
Papa MidnightAndrew Eisen, I believe this is the picture that you seek: http://i.imgur.com/Gdk60pa.jpg03/06/2015 - 12:30am
Papa MidnightSurely, Goth_Skunk, you say that in jest?03/06/2015 - 12:28am
prh99Craig R. Cause quite a few of them are not, they're bullies with different politics.03/06/2015 - 12:23am
MechaTama31What was the "mistake" tweet?03/06/2015 - 12:18am
MechaCrashWhatever you say, Goth.03/06/2015 - 12:02am
E. Zachary KnightGoth, they could have fooled me.03/05/2015 - 11:16pm
Goth_SkunkI don't understand. GamerGate supports an open, diverse gaming community for all as well. Google's statement is contradictory.03/05/2015 - 10:59pm
TechnogeekAnd as far as the Card thing went, I basically balanced it out personal guilt-wise by donating an amount equal to the Shadow Complex purchase price to the ACLU.03/05/2015 - 9:44pm
TechnogeekWelp, look like the Gerberghazi crowd is going to have to use Bing now. https://twitter.com/googlecloud/status/57365320825126093003/05/2015 - 9:42pm
Goth_SkunkAhh! I misinterpreted your statement about being left with almost every game in existence. I interpreted it as 'If you boycott games he's been involved with, you're boycotting almost all of them.'03/05/2015 - 9:31pm
Andrew EisenGoth - Card has been involved with only a small handful of games so if one were to boycott games for his involvement, they wouldn't be missing out on many games.03/05/2015 - 9:29pm
Goth_Skunk@Craig: Only if you're not interested in seeing it end.03/05/2015 - 9:27pm
Craig R.Instead of calling people the "anti gamergate faction", you could just call them "sane"03/05/2015 - 9:23pm
Goth_SkunkWhat do you mean 'almost every game in existence'? Card is a writer, not a game developer.03/05/2015 - 9:18pm
Andrew EisenBut I too wonder how many people who cry boycott actually follow through. I vaguely remember a few years ago a bunch of people boycotting one of the CoD games and were all found playing it on Steam.03/05/2015 - 7:53pm
Andrew EisenAn interesting quandary but not equivalent as boycotting games that Card was involved with leaves you with... well, almost every game in existence.03/05/2015 - 7:51pm
 

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