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FCC chairman seeks AT&T / T-Mobile merger review

Written by James Delahunty (Google+) @ 23 Nov 2011 10:17 User comments (2)

FCC chairman seeks AT&T / T-Mobile merger review Julius Genachowski wants proposed merger sent to administrative law judge.
The Chairman of the Federal Communications Commission sent a draft order to fellow commissioners in which he cites FCC staff findings related to the merger's impact on competition in the market, and on jobs.

"The record clearly shows that -- in no uncertain terms -- this merger would result in a massive loss of U.S. jobs and investment," an FCC official said, according to Reuters. AT&T's planned merger is already in the firing line of the U.S. Justice Department.

The DoJ went to court in August to oppose the purchase on antitrust grounds, with a trial due to commence in February. Any proposed administrative hearing at the FCC would only begin after the antitrust trial, effectively ensuring that another roadblock is prepared.

AT&T said it is disappointed with the FCC action, and disputes its findings related to job losses and investment. The No. 2 carrier in the United States cited $8 billion in broadband investment and commitments on job preservation and enhancement.

"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," said Jim Cicconi, AT&T executive, referring to a $4.5 billion annual fund to promote broadband to underserved communities, which the FCC says will create 50,000 jobs over six years.

Genachowski's order requires approval by a majority of commissioners to go ahead. He can be expected to get support of two fellow-Democrats on the panel, while the agency is left with just one Republican currently.

Tags: T-Mobile AT&T
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2 user comments

124.11.2011 0:44

Who actually came out on top in Cingular's acquisition of AT&T wireless. I guess we can welcome back Ma Bell.

This message has been edited since its posting. Latest edit was made on 24 Nov 2011 @ 0:45

If your fish seems sick, put it back in the water.

225.11.2011 14:50

The US Government needs to stand their ground on this topic. I left At&t and went to T-Mobile for a reason, damn it.

A corporate infrastructure can be the perfect place to make advancements in technology and manufacturing but it seems that so many of them (corporations) begin to lose quality and direction once they have inflated past a certain point. (HP)

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