U.S. FCC seeks review of AT&T merger with T-Mobile USA

“The chairman of the Federal Communications Commission took a step toward blocking the proposed $39 billion merger of the mobile phone companies AT&T and T-Mobile USA after the commission’s staff concluded that the deal would result in an overly concentrated industry and harm consumers, F.C.C. officials said Tuesday,” Edward Wyatt reports for The New York Times.

“The decision by the chairman, Julius Genachowski, puts a second large roadblock in front of AT&T, the nation’s second-largest wireless phone company, in its effort to buy T-Mobile, the No. 4 carrier,” Wyatt reports. “In August, the Justice Department filed a federal antitrust lawsuit to block the merger, saying it would stifle competition.”

Wyatt reports, “Mr. Genachowski on Tuesday sent to the other three commissioners a proposed order to refer the merger to an administrative law judge for a trial-like hearing in which AT&T would be required to show that the deal is ‘in the public interest.'”

Read more in the full article here.

[Thanks to MacDailyNews Readers “Fred Mertz” and “Lynn Weiler” for the heads up.]

Related articles:
Verizon CEO McAdam: AT&T should be allowed acquire T-Mobile USA – September 22, 2011
U.S. DOJ won’t explain decision to challenge AT&T’s purchase of T-Mobile USA – September 21, 2011
Sprint files lawsuit to block proposed AT&T and T-Mobile USA transaction – September 6, 2011


    1. The consumer won’t be hurt by a T-Mobile bankruptcy. One, they’ll more than likely continue to operate. And two, another party (AT&T, a solvent regional carrier, Apple…) will be able to buy T-Mobile’s assets for a lot less than AT&T is offering to pay. The only “losers” here will be T-Mobile shareholders. But you know what? That’s how capitalism is supposed to work.

  1. Reduce the legal problems to put up cell sites, this will benefit the customer. Yet, they burden the process even further in the name of helping the customer. I would perfer to have better coverage. Yet a admin law judge must decide for me. Take a poll and let it settle the question.

  2. What indicators are there that T-Mobile will file bankruptcy? It’s possible I missed something. However, in my view one company’s potential for failure should not be the basis for allowing a merger.

    In my view, I think AT&T is being disingenuous in claiming jobs will be created. The question is, “How many jobs will be lost as AT&T removes duplication?”

  3. I’m a t mobile customer and I think it is a great company. I’ve tried AT&T and despise the company, wasn’t it AT&T that created the infamous 300 page bills for the original iPhone? How soon people forget. BTW, use an iPod touch for web and gaming as I prefer phones that are just for calls and text. T mobile is nowhere near bankruptcy they are profitable and have been growing, it’s just about money and power.

    1. Thats all good you don’t like AT&T. The 300 page bill was a one to,e fluke in which if you remember the iPhone had its own separate plan which caused problems in the billing and was solved immediately. And yes tmobile is near bankruptcy and has been not been very profitable at all and has been losing customers consistently over the years. Go and read why their parent company is wanting to sell them.

  4. It may surprise some, but many of us don’t need a smart phone. My ideal device would be an Ipod touch with a phone and text.Web/ email via wifi. That way maybe one might have at most a $25 per month phone bill.
    Most of us don’t need to be wired all the time, A simple phone call/ text will keep us all in touch with the important stuff. The rest can wait until you can find wifi.

  5. Really? Then why can’t ATT buy them now and risk the difference?

    Because that’s how REGULATED capitalism works!
    (the T-Mobile shareholders do not represent a larger voting block-lobbying power than Verizon/Sprint side)

    ¡¡¡Viva lé Castro/Chavez!!!

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