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Report: FCC official doubts AT&T + T-Mobile deal will sail through

An unnamed FCC official told the Wall Street Journal this week that "there's no way the chairman's office rubber-stamps" the recently announced merger between AT&T and T-Mobile USA. The official didn't go into further details, but said that the organization hadn't even begun preliminary research into the merger, and that even if the deal does eventually go through, "It will be a steep climb to say the least."

So, not exactly a vote of confidence from the FCC so far. Still, that's far from an official statement, and certainly both AT&T and T-Mobile are going to do everything possible to try and get this deal through. As we posted before, Sprint is the most likely opponent to the deal, and has asked federal regulators to take a close look at the potential effects. The earliest reports we got said that the transaction was planned to take about a year, so the FCC will likely have a decision within that time frame.

[via BGR]



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An unnamed FCC official told the Wall Street Journal this week that "there's no way the chairman's office rubber-stamps" the recently...
 

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Michael

It is sad to see government get involved in a transaction between two private companies. It is even more sad to see that people aren't outraged that the FCC even has a say in the matter.

The simple fact is that a true monopoly can't survive in the free market (and if it does it deserves to). The only way a true monopoly survives is when government interferes via legislation (due to lobbying power) to give them an advantage.

March 25 2011 at 10:16 AM Report abuse rate up rate down Reply
tcahill2

"there's no way the chairman's office rubber-stamps"

This is news because they usually always say, "yeah, the chairman will rubber stamp it"??

March 24 2011 at 10:20 PM Report abuse rate up rate down Reply
Nick

The reason they're saying this will take "a year" is because by that point ALL of the major US carriers will have deployed their "LTE" networks. Once this happens the excuse that AT&T will stifle GSM innovation.

March 24 2011 at 7:55 PM Report abuse rate up rate down Reply
Brent

This deal is good for AT&T and bad for consumers. AT&T gobbling up T-Mobile USA and their customer base is going to leave Sprint as the single national carrier that distinguishes itself through lower prices, in which case would leave Sprint less incentive to keep their prices low with no competition from T-Mobile in the race to the bottom. Strangely, Sprint and Verizon may both benefit from this merger as I've been hearing a lot of T-Mobile customers say they want nothing to do with AT&T. I also don't necessarily buy this as significant to AT&T improving its network. They may be getting a bunch of towers in the acquisition but they're also getting the T-Mobile customers that have been using them. What may happen in densely populated areas instead is that the T-Mobile customers that get moved over start feeling the effects of AT&T's overload.

March 24 2011 at 6:47 PM Report abuse rate up rate down Reply
KIVERS

You won't get any of that. Did Comcast give their customers anything when they bought NBC? Nope!

This has to do with money and influence, two things that at&t has plenty of. The deal will go through, but the FCC will have a dog & pony show for the public so we think they actually did something.

March 24 2011 at 5:55 PM Report abuse rate up rate down Reply
1 reply to KIVERS's comment
jbelkin

Yea, Comcast had to concede a list of thing (including net neutrality) - I'm not saying they're earth shattering or they won;t try and weasel out but it's better than nothing ... remember if you don;t ask ...

March 24 2011 at 8:37 PM Report abuse rate up rate down Reply
jbelkin

The deal will most likely go through as it's clear that being 3rd in the US telco race is not much of a story BUT this is the time to tell the FCC what conditions we want going forward that AT&T will capitulate to as part of the deal:

1) They must offer an unlimited data-web plan (some price cap for 5 years) that is really UNLIMITED. This will force Verizon to match it in some close manner.

2) All phones must be sold unlocked. Of course, it won't matter much as where are you really going to go but it does make using it internationally easier ...

What else?

March 24 2011 at 5:03 PM Report abuse rate up rate down Reply
1 reply to jbelkin's comment
Joshua

Tethering must be included in the unlimited data package. I don't use tethering, but its lunacy to have to pay EXTRA when you have an unlimited data plan.

March 25 2011 at 10:16 AM Report abuse rate up rate down Reply
waiownsyou

As long as both carriers start using the same towers so I can get better coverage and less radiation going through my body, the happier I am.

Also, T-Mobile customers are usually cheap and whiny so with any hope, they'll complain enough so that AT&T will lower their damn prices.

March 24 2011 at 4:48 PM Report abuse rate up rate down Reply
1 reply to waiownsyou's comment
HKM

Hmmm sounds like typical mindless moron who likes to be anally penetrated by the DeathStar. Then again what else would you expect from someone who is mostly using iPanzy4. Now sorry to burst your bubble about TMo user being cheap not everyone like to be raped with overprice BS like you as you don't know any better. But ATM I have a phone which you can't afford the accessories I bought extra costs more than your POS phone that you are most likely using. Fact is in past 12months I have spent total of close to 1.4k just on the device.

Now I know you are brain dead so you don't actually have any clue but go do some resarch and you will find out why we hate this at&Tmobile merge. Hell my price will go down by +$25/month according to the current AT&T price and in every part from min/text/web the service will go down. So use your 11IQ maybe download an app for that on your POS phone that was 2years old and behind the curve when it was even in production and provide some logic or get raped.

March 25 2011 at 6:44 PM Report abuse rate up rate down Reply
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