FCC Chairman wants a judicial review of proposed AT&T purchase of T-Mobile

FCC Chairman wants a judicial review of proposed AT&T purchase of T-Mobile
The FCC waited a long time to reach a conclusion on the proposed purchase by AT&T of T-Mobile. On Tuesday, FCC Chairman Julius Genachowski sent a draft order to his fellow commissioners saying that FCC staff has found that if the deal is completed, it would lead to a lower level of competition in the industry along with job cuts. As a result, the FCC Chairman wants an administrative law judge to review the deal

Genachowski's order still needs to be voted on and approved by a majority of commissioners and if it passes, the review would prolong the closing of the deal well beyond the early 2012 timetable that AT&T had in mind for closing the deal. The carrier responded by saying, "The FCC’s action today is disappointing. 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 US economy desperately needs both."

The Department of Justice has already sought to block the deal by suing to block the $39 billion purchase by AT&T of the nation's fourth largest carrier. And while AT&T has promised to bring 5,000 jobs back to the States after the deal closes, both the DOJ and the FCC appear to fear a sharp drop in competition that could occur as a result of the merger. Competition and not jobs might be the main issue as recently, the CWA said that a purchase of T-Mobile by AT&T could lead to the creation of as many as 96,000 jobs.

The nation's third largest carrier, Sprint, has been vocal in asking the government to block the deal which would leave AT&T as the largest carrier in the U.S., passing over the current number one ranked Verizon Wireless. Even with that incentive, if a possible closing of the deal starts to push out toward the end of 2012 or into early 2013, it might force AT&T to pull the plug on the whole idea.

source: Reuters via AndroidCentral

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15 Comments

1. ZEUS.the.thunder.god unregistered

disappointing

11. gaby1451

Posts: 119; Member since: Mar 30, 2011

Elaborate.

2. vvelez5

Posts: 623; Member since: Jan 29, 2011

Lots of government agencies looking to block capitalism.

3. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

@vvelez - fixed it for you: "Lots of capitalists looking to avoid competition." Any time you remove a competitor, the end result is less employment and higher rates. AT&T is hoping that by repeating a lie (higher employment and lower rates ), it will be confused for the truth. Some will even confuse the lie for truth. But that doesn't make the lie true.

7. nickjjay

Posts: 79; Member since: Oct 10, 2011

Thats a good way to put it. Just becuz im personally against big governent, doesnt mean that i cant also be against anti-competative behavior. ATT has its roots in anti-competative behavior. Even tho Cingular bought them out, it looks like they still have that same distructive mentality that monopolies are the way to go.

13. vvelez5

Posts: 623; Member since: Jan 29, 2011

Let me put it this way Droid_X_Doug. You have money to buy a product that you want and whoever is trying to sell that product is willing to sell it to you for a price you two agree on. Then someone who has nothing to do with the deal starts crying saying they don't want you to buy the item because it isn't fair that they couldn't buy it. (Sprint wanted to buy TMO but AT&T offered more money) So another group comes by and says the same thing. You can't buy it because it isn't fair for little Sprint who didn't have the money in the first place. Sound fair to you? Also of course if you remove a competitor there is less competition but that is the name of the game of capitalism. Someone wins and someone loses and there will always be someone else looking to take the losers place (C Spire, Metro PCS) The idea that people can't win or lose in a capitalistic society isn't capitalism. That's how it works. Anytime you have government stick there nose in any type of business everything gets screwed up.

14. godsarmylds

Posts: 36; Member since: Mar 05, 2010

Sorry i dissagree concerning this situation. ATT and Sprint are two very different companies and the merger affects the industry differently based on who does the purchase. ATT Already very large and plans over priced for what they even offer their customers. Sprint lot smaller company and prices very customer friendly. I hope you can connect the dots from this point. It makes more sense for Sprint to be able to purchase tmo. It make very little sense to allow att to purchas tmo.

15. vvelez5

Posts: 623; Member since: Jan 29, 2011

In a capitalistic society, that isn't your decision to make. The one who wants to sell the company and the one who wants to buy it has that decision. Also the same thing will happen if Sprint buys TMO because that is one less competitor regardless. Also ATT's plans are similar to Verizon except for the data plans which ATT offers more flexibility than Verizon. DT doesn't want TMO anymore. They are looking to sell it and get rid of it. So why can't they sell their product? That's like saying you arent allowed to have a garage sale because your next door neighbor doesn't have the money to buy whatever you are selling but someone does.

4. hitechredneck

Posts: 103; Member since: Nov 21, 2011

Block at&t but don't tax overseas american companies. what a joke. So keep the deal out so at&t will back out. Deutsche telekom has already said the deal is going through. I like to see the deal go through just to give verizon a run for their money like at&t's new LTE network. Can't wait to see what 2012 has to offer, looks like it might be quite the year.

5. jtech

Posts: 101; Member since: Jul 14, 2011

Screw capitalism, screw this stupid deal finally they agencies are doing something right. If at&t buys out tmo it becomes a monopoly and prices sky rocket no matter what the liers at at&t say

6. BattleBrat

Posts: 1476; Member since: Oct 26, 2011

At&t's network actually isn't bad, the people I know who have a problem with at&t's network use Iphones, so you do the math.

8. JGuinan007

Posts: 699; Member since: May 19, 2011

The deal will go through ths gov needs to grand stand and politcians needs to hoot and holler til their pockets are greased enough

9. nickjjay

Posts: 79; Member since: Oct 10, 2011

i hope you are wrong

10. nickjjay

Posts: 79; Member since: Oct 10, 2011

.......

12. rendHELL

Posts: 304; Member since: Nov 09, 2011

good job sprint.... dont let them merge....

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