UPDATED 07:38 EDT / NOVEMBER 23 2011

FCC to Take AT&T-T-Mobile Deal to Administrative Court

Ever since AT&T announced it plans to acquire T-Mobile, it’s been jumping hurdle after hurdle trying to make this tall order of a deal work out.  The Federal Communications Commission Chairman Julius Genachowski is one of the biggest obstacles that AT&T faces in the T-Mobile deal.  From the very beginning, he’s questioned the impact of the deal where competitors are concerned, determining whether or not T-Mobile’s acquisition would monopolize the market since AT&T and T-Mobile are the only ones who operate on the GSM level.

And now Genachowski presents another hurdle for AT&T, as he aims to refer the deal for an administrative hearing before the judge.  The deal is viewed as not only a move to monopolize the market, but jobs are also on the line if the merger pushes through.

“The record clearly shows that – in no uncertain terms – this merger would result in a massive loss of US jobs and investment,” said Genachowski.

AT&T claims that the merger will greatly benefit the public, as it would facilitate in bringing LTE to rural parts of the US.  In addition, AT&T claimed that the merger would allow them to accommodate the increasing demand from consumers, as well as providing the best quality of service.

AT&T’s senior vice president for corporate communications Larry Solomon was clearly disappointed by how things are unfolding and stated, “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.”

Consumer groups and AT&T rivals, who are opposing the deal, are elated with Genachowski’s proposal as he is protecting not only consumers but is fostering an atmosphere for healthy competition.

AT&T is clearly pissed off at the FCC as their senior executive VP for external and legislative affairs Jim Cicconi stated, “This notion, that when government spends money on broadband it creates jobs, but when a private company spends money it doesn’t, is clearly wrong on its face, and raises questions about the credibility of anyone at the F.C.C. who would make such a claim.”

Aside from the FCC, AT&T is also facing legal hurdles from Sprint and C Spire Wireless, who are also blocking the deal.


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