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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MaskedPixelantehttp://www.playstationtrophies.org/news/news-15838-Sony-Cuts-the-Price-of-PlayStation-TV-Today.html Sony cuts the price of the Vita TV in the UK, still wont force developers to make their stuff compatible with it.03/27/2015 - 10:49am
Andrew EisenMechaCrash - It's true, there are a lot of examples of crap adaptations. But there are increasing numbers of great adaptations such as the Marvel movies. That said, it's certainly going to be an uphill battle at Sony, especially with Tom Rothman around.03/27/2015 - 10:45am
ZippyDSMleeOh live action crap...I dunno with hollywood being stuck in the 90s grimdarkblack mode I can not see how anything would work well other than SNK or Akira.. then again Akira is a bit of head trip...03/27/2015 - 10:11am
MechaCrashI meant Hollywood in general. If they did a Robotech movie, it'd just be a slightly tweaked Macross, because usually when people talk about Robotech, they just mean the first third. Nobody cares about the Masters/Southern Cross or Invid/MOSPAEDA stuff.03/27/2015 - 9:36am
ZippyDSMleeYes Macross is good..... robotech....not so much..... Now Pizza Cats that's the definitive TV dub, if not best dub ever I'd put it up there with COwboy Bebop just becuse the Pizza Cats dub is fun as heck and crazy,Medabots and Fighting Foodons are decent.03/27/2015 - 9:20am
InfophileAged well plot-wise, I mean. The animation is showing its age, but if you don't mind that, the plot holds up quite well03/27/2015 - 6:52am
InfophileRobotech may be 30 years old, but it's actually aged pretty well. Plus, one of the three Japanese franchises that went into making it, Macross, is coming out with a new series soon. So it's far from forgotten or out-of-date03/27/2015 - 6:50am
ZippyDSMleePapa Midnight: Care to take a look at this and tell me what you think about it? http://www.amazon.com/Frisby-FS-5010BT-Surround-Speakers-Bluetooth/dp/B00EYX1N2S/03/26/2015 - 10:27pm
Matthew Wilson@AE I think he means both.03/26/2015 - 9:23pm
ZippyDSMleeuhg either a nap after being up 30 hours or working on my comp blah. Oh wow when did the the all shout box page show 3 times as many shouts 0-o03/26/2015 - 8:30pm
Andrew EisenMechaCrash - Sony in particular or Hollywood in general?03/26/2015 - 7:38pm
Matthew Wilson@mach no way in hell, so that is why I want them to stay away.03/26/2015 - 7:21pm
MechaCrash"Get the movie right" is preferable to "stay away," but do you really think they won't screw it up?03/26/2015 - 7:19pm
Craig R.And yes, 90's games. Damn near all of my fav computer & console games were from that decade03/26/2015 - 7:00pm
Craig R.I'd take the NCAA seriously if they'd bite instead of bark03/26/2015 - 6:59pm
Andrew EisenConster - Sure, give me a few minutes.03/26/2015 - 3:05pm
Consterhttp://sanfrancisco.cbslocal.com/2015/03/26/salesforce-ceo-says-company-is-cancelling-all-programs-in-indiana-over-lgbt-discrimination-fears/ http://edition.cnn.com/2015/03/25/politics/mike-pence-religious-freedom-bill-gay-rights/index.html03/26/2015 - 2:55pm
ConsterApparently Salesforce and the NCAA are also upset over SB 101. I know they're not video-games related, but maybe add a line to the article?03/26/2015 - 2:54pm
Andrew EisenThat said, I doubt that if the movie gets made, it will be similar to either version of the show. But, Star Wars movies will be out again and the designs are still pretty awesome so it's got a chance.03/26/2015 - 2:34pm
Andrew EisenPeople my age and older with disposable income and a fondness for nostalgia.03/26/2015 - 2:32pm
 

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