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 EisenOkay, so I guess I'm not making sense of #notyourshield because it doesn't make any sense.09/18/2014 - 5:28pm
Andrew EisenI'd really only count three as being "death of gamer" articles and only one as arguably going a bit far with "gamers are young white dudes" stuff.09/18/2014 - 5:17pm
Andrew EisenMost are really just a look at the crap that happened the previous day when Sarkeesian's new video came out and almost all are exceedingly clear that they're talking about the specific gamers who are being obnoxious.09/18/2014 - 5:17pm
Andrew EisenKrono - Yep, I had only seen two. I looked at the 12 you sent and while I had seen a few of them, I didn't think to count them. Some aren't about gamers at all. One's just highlighting two others. One is a Gamasutra community member blog post.09/18/2014 - 5:15pm
Michael Chandrawould clearly not apply, since they weren't used as shield. It's more "hey, just because I don't agree with you doesn't mean I'm CISWASP."09/18/2014 - 5:08pm
Michael ChandraIn comparison though, the more extreme views would be fairly countered with "you don't speak for me". But the batshit crazy people tend not to even use others as the shield to defend their batshit crazy ideas and insults, so at that point #notyourshield09/18/2014 - 5:06pm
Michael ChandraWhich is of course real silly because when there are so many horrible stories and statistics too, it's utterly irrelevant whether some don't mind.09/18/2014 - 5:00pm
Michael ChandraIn this context it would be women claiming they don't see a problem with the stuff, so stop claiming women don't like it!09/18/2014 - 5:00pm
Michael Chandra"You don't speak for me. I am not your shield. You cannot use me to defend your own opinion."09/18/2014 - 4:59pm
Michael ChandraAE, if we leave aside the falsehoods some use with the term, the idea is regarding minorities and such.09/18/2014 - 4:58pm
Michael ChandraKrono did just a bit earlier in the shoutbox prh99.09/18/2014 - 4:56pm
Andrew EisenI still don't get the what #notyourshield is supposed to mean. Who is unfairly using who as a shield for what?09/18/2014 - 4:43pm
prh99Didn't said anything about #notyourshield or it's origins. Assuming your comment was directed at me.09/18/2014 - 4:28pm
prh99Leigh Alexander is right though, no one has to cater to them (trolls). I think a lot of them would likely continue playing even if scantily clad women were omitted or protagonist was female.09/18/2014 - 4:21pm
Michael ChandraSo no, normal gamers feeling attacked was not what sparked #notyourshield and only a fool would suggest otherwise.09/18/2014 - 4:21pm
Michael Chandra#NotYourShield was kickstarted by 4chan people, so don't go and make nonsense claims about that.09/18/2014 - 4:20pm
prh99those toxic individuals conduct their trolling under. It could have easily been under the Men Rights banner etc, they are just generally unpleasant and angry people who can't stand people disagreeing with them. 09/18/2014 - 4:00pm
prh99The whole gamer identity is the scapegoat some have latched onto in the wake of gamergate. I am sure it will fade, only to be replaced with the next thing, it always is. I am not so sure removal of identity will fix the problem, it's just the banner..09/18/2014 - 3:55pm
E. Zachary KnightAs for the whole "death of gamer" thing, I am personally patiently waiting for the day when being a person who plays games is as much of an identity as a person who reads books, watches tv/movie, listens to music. It will happen.09/18/2014 - 2:42pm
E. Zachary KnightThought I would share this io9 article as a bit of a rebuttal to the earlier Spider-man/Spider-woman comparison: http://io9.com/10-stupid-arguments-people-use-to-defend-comic-book-sex-163638182409/18/2014 - 2:41pm
 

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