FCC official: ‘No way chairman’s office rubber stamps’ AT&T’s T-Mobile acquisition

By on Mar 24, 2011 at 2:39 PM
General March 24, 2011

Speaking to The Wall Street Journal on Thursday, an anonymous Federal Communications Commission official said “there’s no way the chairman’s office [will] rubber-stamp” AT&T’s $39 billion acquisition of Deutsche Telecom-owned T-Mobile USA, and that the approval process will be “a steep climb at least.” The FCC official went on to say that the FCC has not even started to evaluate the deal and that it will be scrutinized and denied or accepted based on whether or not it will be in the best interest of consumers. Similar deals have been doubted before, though, and the WSJ points to the merger between XM Satellite Radio and Sirius Satellite radio, which FCC chairman Kevin Martin said would be a high hurdle to approve back in 2007. Current FCC Chairman Julius Genachowski said Tuesday during his speech at the CTIA Wireless 2011 trade show, which we live blogged, that “healthy competition produces greater innovation and investment, lower prices, and better service.” AT&T’s purchase of T-Mobile is seen as likely decreasing the amount of competition in the U.S. wireless market, with just three major carriers competing for customers. But Genachowski has yet to comment on the acquisition proposal. As we said in an earlier editorial, T-Mobile customers could come out on top with this deal — if it ends up being approved.

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  • http://www.closetheborder.com Johnny Test

    Dumb asses! How can anyone compare sat radio with cell phone service. XM most likely was going out of business without the merger. Totally different situation. The FCC will approve the deal because lots of money will change hands, wink, wink. I expect there will be a few rich Feds after this gets approved.

  • Miro

    I won’t come on top if the ATT-Tmobile merger is approved. My bill would go up $480 in a 2-year contract at AT&T if I want the same setup we have now with T-Mobile

  • Ben

    Like, what did you expect him to say? of course they “Rubber Stamp” these acquisitions, the FCC is just as buyable as the rest of the US politicians.

  • Martina

    I haven’t seen anyone saying anything about the approx. 42,000 T-Mobile employees that might lose their jobs because of this. AT&T is known for handing out pink slips after they swallowed up another competitor in the past. About 30 years ago AT&T Ma Bell was split up by the government because of monopoly, now it’s on the same track again, I hope that this deal will be rejected !!

  • Pattyluve Ryan2

    No major gsm carrier means monopaly . Monopaly means one and that means only one gsm . I’m a tmobile customer and ill jump ship if this deal go thrue . I will not pay my money to at&t who if they let buy tmobile will almost own the world .

  • Anonymous

    NO-WAY any consumer comes out “on top” with a merger like this. Especially T-Mo customers… TODD

  • http://twitter.com/alessiotilli alessio tilli

    If history serves me correct CEO of Ma Bell at the time right after the break said that he wanted to once again become the largest telecom company and look they did it. It was all part of a master plan.

  • http://www.facebook.com/people/John-Alexander-Thacker/597252629 John Alexander Thacker

    XM and Sirius were both on the verge of bankruptcy (and obviously do compete with other in-car entertainment options.) AT&T and T-Mobile are not.

  • raptor

    BGR, you do great reporting but your economics are kind of terrible. The deal will not be a great deal for tmobile. People with tmobile have a choice of any provider and have chosen tmobile through the years. If we wanted a different network, we would switch to a better network. Clearly, for tmobile customers, there are a different set of priorities.

  • Tlak367

    Considering ATT is just a money grubber, and a rip off, I would NEVER USE ATT AGAIN, they are a bunch of thieves in my opinion or just plain incompatant.

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