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

Posted in

Comments

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

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

 
Forgot your password?
Username :
Password :

Shout box

You're not permitted to post shouts.
ZippyDSMleehttp://gamepolitics.com/2015/01/30/pewdiepie-and-other-youtube-stars-criticize-nintendos-new-revenue-sharing-program#comment-29809502/01/2015 - 7:11pm
ZippyDSMleeASked a question, that might not be incoherant and useless.02/01/2015 - 7:11pm
Andrew Eisen"Let me sink my claws into your flesh to prove my love!"02/01/2015 - 5:49pm
Goth_SkunkAs for her hindclaws, I'm incredibly blessed: She trims those herself. It's amazing!02/01/2015 - 5:47pm
Goth_SkunkThankfully she's not scratching anywhere she isn't supposed to, but when she climbs up into my lap and kneads at my stomach or arm, I prefer dull claws to the pinpricks she had today.02/01/2015 - 5:47pm
Andrew EisenSure, sure. If she's scratching things she's not supposed to, trimming is a better solution than declawing. Hard for them to groom with no claws.02/01/2015 - 5:41pm
Goth_SkunkShe does, but those items don't do a thing to keep claws dull. In fact, they help sharpen them. Cats are going to scratch. It's instinctive. Even if they've been declawed, they'll still execute the behaviour on a surface pleasant to them.02/01/2015 - 5:36pm
Andrew EisenAn indoor cat I'm guessing. Does she not like to use scratching posts or things of that sort?02/01/2015 - 5:28pm
Goth_SkunkOff-Topic Sunday: I hate trimming my cats front claws. Not because she makes it more trouble by fidgeting, she's actually well behaved. I'm just anxious as hell that I'll trim too deep and cut into the quik. :(02/01/2015 - 5:27pm
WonderkarpMonte : Its kind of hard to ignore that commentary when companies you patron invite the commentators into their halls to "Better Themselves".02/01/2015 - 4:33pm
CultofZoidbergWhen are they going to release Brigandine Legend of Forsena on Steam, i don't trust Torrent, and a used copy is about 80 dollars02/01/2015 - 3:23pm
prh99MechaTama: I don't know his motive for asking, he could be just trying to cause trouble. If not he waited too long and in either case should just give up.02/01/2015 - 1:39pm
MonteIf you don't like someone's commentary; simply ignore them. Do not give them ANY kind of attention; even negative attention gives them traffic. If they're wrong and their opinions cant stand on their own merits, they will simply fade away into obscurity.02/01/2015 - 1:17pm
IanCBut of course no one on the GG side has been harassed. Nope. None at all. BS. Both sides are acting like children. No, I take that back, CHILDREN are better behaved.02/01/2015 - 12:25pm
MechaTama31Of course, that advice is only really useful if you are one of the harassers...02/01/2015 - 11:50am
prh99Maybe it's time to rethink your strategy if your enemy doesn't have to make stuff up.02/01/2015 - 5:01am
prh99Also if you don't like someone, harassment and scandals will only get them more attention. Zoe Quinn would probably not be as well known if not for various harassers.02/01/2015 - 5:00am
prh99Personally, I just clicked the three vertical dots the first YouTube recommended one, haven't seen one since. Too bad I can't get rid of Pewdiepie video recommendations that easily.02/01/2015 - 3:19am
prh99Just don't watch the videos, who cares what she does or doesn't do. If her audience likes it so be, if they think she's doing something she shouldn't they'll stop watching.02/01/2015 - 3:14am
WonderkarpAndrew Yoon Died http://www.gamerevolution.com/news/rip-andrew-yoon-3096901/31/2015 - 10:26pm
 

Be Heard - Contact Your Politician