FCC releases analysis on AT&T deal, AT&T responds

On Tuesday, the U.S. Federal Communications Commission (FCC) released a 109-page analysis and findings report on AT&T’s (Dallas, Texas, U.S.A.) proposed $39 billion acquisition of T-Mobile USA (Bellevue, Wash., U.S.A.).  In the report, the FCC said the acquisition would limit competition and higher prices for customers.

The release of the analysis comes the same day that the FCC allowed AT&T to withdraw its acquisition application so the network operator could focus on the upcoming lawsuit with the U.S. Department of Justice (DOJ), who filed a lawsuit against AT&T in late August.  The trail is set for February.

In response to the analysis, AT&T released a statement from Jim Cicconi, senior executive vice president of external legislative affairs, which called the FCC’s decision to release the analysis “troubling.”

“This report is not an order of the FCC and has never been voted on,” says Cicconi. “It has no force or effect under law, which raises questions as to why the FCC would choose to release it.  The draft report has also not been made available to AT&T prior to today, so we have had no opportunity to address or rebut its claims, which makes its release all the more improper. ”

In the report, the FCC said that AT&T submitted an Economic model, but that it “does not provide any basis to conclude that there would be no harm to consumers.”

Instead, the FCC states that the Economic Model submitted leads them to believe that prices will increase, therefore hurting consumers.

In an attempt to salvage the deal, it is reported that AT&T is now looking to sell assets to make the deal more attracted to the FCC and DOJ.  Leap Wireless (San Diego, Calif., U.S.A.) and MetroPCS (Richardson, Texas, U.S.A.) are allegedly potential candidates for an asset sale.

According to a Reuters report, AT&T would have to sell up to 40% of T-Mobile assets to make the deal go through.

Related Articles

Blocking AT&T, T-Mobile deal could hurt rivals

FCC chief seeks added review on AT&T, T-Mobile deal

Judge allows Sprint suit against AT&T, T-Mobile deal


Featured Reports

Current State of Fifth Generation (5G) Cellular and 5G Technologies

This research provides an in-depth assessment of both technical issues (enabling technologies, 5G standardization and research initiatives, spectrum bands, etc.) and business areas (market drivers, challenges, use cases, vertical market applications, regulatory issues, trial commitments, introduction strategies, and impact to CSPs), as well as analysis of the emerging 5G ecosystem.

Click to learn more

Understanding and Capitalizing on Mobile Payment Systems

Mobile payments is rapidly expanding with solutions, applications, and services. Mobile payments systems include technologies and solutions that deliver electronic commerce features directly across mobile-wireless devices. This report provides an understanding of mobile payments technologies, systems, major players and solutions, and an overall forecast for mobile payments for five years.

Click to learn more

More Featured Research

Access the exclusive new series of market research reports brought to you through the partnership of Mind Commerce research and TelecomEngine.com.

See all reports