AT&T’s Proposed T-Mobile Acquisition Faces New FCC Challenges

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When AT&T first announced its plans to acquire T-Mobile, everyone from the companies involved to industry pundits seemed convinced the deal would go through. Even in the face of voices calling the move anti-competitive, the prevailing belief seemed to be that there was too much money involved and support from large corporations for it not to just shove its way through the FCC and become a reality. Month after month, though, the tide slowly started changing against the merger, attracting new opposition in the form of a Department of Justice lawsuit. Optimism towards the purchase going through feels like it’s at an all-time low, and now the FCC has thrown another wrench in the works, revealing its intent to put the deal up to an administrative hearing.

The FCC would only hold such a hearing if the purchase overcomes the DoJ opposition it’s currently facing. In that circumstance, the FCC would require AT&T to make its case as to why this merger, and the apparent effective duopoly it would create, would be in the public interest. Initial reports show strong support within the FCC for undertaking this step, suggesting it’s a very likely possibility in the event AT&T triumphs against its first-round lawsuit.

We’re still a long way off from the deal’s fate being decided in either direction, but if its current trajectory plays out, T-Mobile had better start re-thinking its plans for the future.

Source: The Wall Street Journal, Sascha Segan

Via: IntoMobile

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About The Author
Stephen Schenck
Stephen has been writing about electronics since 2008, which only serves to frustrate him that he waited so long to combine his love of gadgets and his degree in writing. In his spare time, he collects console and arcade game hardware, is a motorcycle enthusiast, and enjoys trapping blue crabs. Stephen's first mobile device was a 624 MHz Dell Axim X30, which he's convinced is still a viable platform. Stephen longs for a market where phones are sold independently of service, and bandwidth is cheap and plentiful; he's not holding his breath. In the meantime, he devours smartphone news and tries to sort out the juicy bitsRead more about Stephen Schenck!