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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Papa MidnightIt's not bad so far, but I am honestly not sure what to make of it (or where it's going for that matter)07/28/2014 - 9:44pm
Matthew Wilsonis it any good?07/28/2014 - 9:36pm
Papa Midnight"Love Child" on HBO -- anyone else watching this?07/28/2014 - 9:27pm
MaskedPixelanteNah, I'm fine purple monkey dishwasher.07/28/2014 - 4:05pm
Sleaker@MP - I hope you didn't suffer a loss of your mental faculties attempting that.07/28/2014 - 3:48pm
MaskedPixelanteOK, so my brief research looking at GameFAQs forums (protip, don't do that if you wish to keep your sanity intact.), the 3DS doesn't have the power to run anything more powerful than the NES/GBC/GG AND run the 3DS system in the background.07/28/2014 - 11:01am
ZenMatthew, the 3DS already has GBA games in the form of the ambassador tittles. And I an just as curious about them not releasing them on there like they did the NES ones. I do like them on the Wii U as well, but seems weird. And where are the N64 games?07/28/2014 - 10:40am
james_fudgeNo. They already cut the price. Unless they release a new version that has a higher price point.07/28/2014 - 10:19am
E. Zachary KnightMatthew, It most likely is. The question is whether Nintendo wants to do it.07/28/2014 - 10:12am
Matthew WilsonI am sure the 3ds im more then powerful enough to emulate a GBA game.07/28/2014 - 9:54am
Sleaker@IanC - while the processor is effectively the same or very similar, the issue is how they setup the peripheral hardware. It would probably require creating some kind of emulation for the 3DS to handle interfacing with the audio and input methods for GBA07/28/2014 - 9:30am
Sleaker@EZK - hmmm, that makes sense. I could have sworn I had played GB/GBC games on it too though (emud of course)07/28/2014 - 9:23am
E. Zachary KnightSleaker, the DS has a built in GBA chipset in the system. That is why it played GBA games. The GBA had a seperate chipset for GB and GBColor games. The DS did not have that GB/GBC chipset and that is why the DS could not play GB and GBC games.07/28/2014 - 7:25am
IanCI dont think Nintendo ever gave reason why GBA games a reason why GBA games aren't on the 3DS eshop. The 3DS uses chips that are backwards compatable with the GBA ob GBA processor, after all.07/28/2014 - 6:46am
Sleakerhmmm that's odd I could play GBA games natively in my original DS.07/28/2014 - 1:39am
Matthew Wilsonbasically "we do not want to put these games on a system more then 10 people own" just joking07/27/2014 - 8:13pm
MaskedPixelanteSomething, something, the 3DS can't properly emulate GBA games and it was a massive struggle to get the ambassador games running properly.07/27/2014 - 8:06pm
Andrew EisenIdeally, you'd be able to play such games on either platform but until that time, I think Nintendo's using the exclusivity in an attempt to further drive Wii U sales.07/27/2014 - 7:21pm
Matthew WilsonI am kind of surprised games like battle network are not out on the 3ds.07/27/2014 - 7:01pm
Andrew EisenWell, Mega Man 1 - 4, X and X2 are already on there and the first Battle Network is due out July 31st.07/27/2014 - 6:16pm
 

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