California public utilities commission investigating AT&T’s T-Mobile acquisition

Legal

The Public Utilities Commission in California will investigate AT&T’s planned acquisition of T-Mobile, The Wall Street Journal reported on Friday. The Golden state is one of three states that Sprint has asked to investigate the deal — the other two are West Virginia and Louisiana. “We believe a thorough investigation will reveal the negative implications for pricing, choice, and innovation critical to California’s economy,” Sprint’s public affairs manager, John Taylor, said. “Sprint is pleased that the commission will open up a proceeding to investigate the proposed takeover of T-Mobile by AT&T.” AT&T originally filed its informal notice with California’s Public Utilities Commission on May 3rd, and Sprint protested the filing on May 19th when it asked for a review of the merger. The regulators will consider three options, one of which is a choice to notify AT&T that its purchase is not “pre-approved” after the standard 30-day time period after an application is submitted. Sprint has opposed the acquisition from day one, and its CEO Dan Hesse said the deal would “stifle innovation” in the U.S. wireless market.

[Via The Wall Street Journal, AllThingsD]

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59 Comments
  • http://twitter.com/DikaiaKnight Carlos A.

    Just FYI, Sunshine State is the nickname for Florida, not California

    • Champ

      Cali also uses it as a nickname. But the original Sunshine State is FL

      • Drew

         Umm, no… it’s the Golden State. Thanks for playing..

      • http://twitter.com/stickyicky97 stickyicky97

        Actually, it’s the Illegal Immigrant State!

      • Joel

        You are ignorant sticky get a life

      • Anonymous

        @ Joel:

        So, illegal immigrants don’t go there? Why do people stick up for illegal immigrants so much? The keyword is “illegal”.

      • serpentor

        @Franklin_Bluth:disqus Why do people stick up for illegal immigrants so much?

        For the same reason people fought to end slavery even though it was legal to own slaves.

        For the same reason people fought for a woman’s right to vote even though it was illegal for them to vote.

        For the same reason people fought to end prohibition even though alcohol was illegal.

        We can have a conversation on the logistics of illegal immigrants and their impact but opposing it just because it’s “illegal” is intellectually lazy.

        Do you drive? Do you follow the posted speed limit because it would be “illegal” to do otherwise?

      • AT&T is the debil!

         I love how Serpenter equates the failed domestic policies of a Country or region, to slavery, a denied vote to legal citizens (why don’t you make it illegal to give up your last name when marrying someone) , and alcohol prohibition (speeding is kind of the same thing numbskull). But then again, this post was about a State, where plastic trash bags have been deemed public enemy #1, that is going to declare antitrust issues a local issue. Who cares if it is a federal issue, California knows better. Oh, I am opposed to the merger.

      • serpentor

        AT&T, you miss the whole point of my reply, which is saying it’s retarded to accept the legality or illegality of any such thing just because it is law at the moment. And I exhibited some examples to make my point.

      • serpentor

        AT&T, maybe this will make my point clearer for you…

        If Franklin_Bluth argues against illegal immigrants simply on the basis they are “illegal” than by the same token, if the Congress passes a bill and POTUS signs into law granting amnesty and opening the flood gate for new immigrants, Franklin_Bluth would then have to change his position because it’s now legal. 

        And if that did happen I don’t think Franklin_Bluth would welcome immigrants old and new with open arms because they’re not “illegal” anymore.

      • http://twitter.com/stickyicky97 stickyicky97

        I find it hilarious when people stick up for illegal immigrants.  The overwhelming majority of illegals pay not income tax which helps finance our vital infrastructures and education systems.  So it’s okay for these people to have complete disregard for laws, come here illegally, live off our system with little to no contribution…….but suddenly they deserve the same rights as legal citizens.  Give me a break.  This is no where close to the comparison of the civil rights or slave-abolishment movements.  I’m all for illegals gaining citizenship with the agreement that they’ll pass English and American History classes, pass drug and background tests/checks, agree to either serve in our military for 2 years or go to a university (scholarship exempt) and earn a degree, or otherwise be deported.  If these are too many demands, go back to your home country, submit paperwork, and earn your citizenship the legal way……or just move to the butthole of America that is now California!  What a great state!

      • Bullet Tooth Tony

        You do realize immigrant labor is responsible for providing us food?  Because, well… nobody else will do that terrible job?  So if you want to eat today, tomorrow, or the day after… maybe you should change your attitude a little bit.

        Oh… and there’s no official language in America… so why would they need to pass an English class?  And a citizenship test will hit on everything historically relevant for an adult, but there’s too much of a backlog to ever really worry about that… so why pass a American history class?  There’s no precedent for drug testing, and it’s unconstitutional, so why even bring that up?  Is being poor reasonable grounds for being on drugs?  And finally, a college degree would over qualify farm hands for their jobs… so again, you’re creating a problem with our ability to go buy food…

        ….maybe it’s time to turn off Faux News, you hit on all the hyperbole’s they force feed… but you have no concept of the reality of the situation and how it would affect, literally, everyone.

      • serpentor

        illegal immigrants still pay sales taxes. And switching to a flat federal sales tax would solve this problem.

        They don’t pay social security taxes, but they also won’t get any SSI anyway, so that’s not an issue.

        And on the issue of taxes, you do realize most all large U.S. corporations pay no taxes, right?

        But I like you mention taxes paying for infrastructure and education because I got the feeling you were a conservative and they poo poo the idea of spending any money on those things.

      • serpentor

        So, if you pay income taxes then you deserve all the rights of citizenship?  Thank you for your support of GAY MARRIAGE.

        idk whether you do or not, but see as you’re so anti-liberal, seemed like a good bet to make.

      • serpentor

        “live off our system with little to no contribution”
        You make it sound like they have it good here. Fact is they come here and work doing shitty jobs for low pay so I can have delicious Cinnamon Toast Crunch in the morning for $5 a box instead of $8.

        But I have to commend you and Franklin_Bluth and others who make a conscious decision to PAY MORE for the things you buy because you’re against illegal immigrants and aren’t tempted to take advantage of the things that come from their labor.

      • serpentor

        It just occurred to me why you’re so hung up on illegal immigrants not paying income tax. You live in North Carolina which takes in $1.10 from federal income tax for every dollar it pays. California on the other hand only gets back 79 cents for every dollar they pay.

        So, two things…

        1. You and your state should stop being a leach and living off us wealthier LIBERAL states.

        2. For all the illegal immigrants CA has and all the income tax they’re shorting this country, CA still feeds all you poorer states like North Carolina. And you know what’s worse? If all the illegal immigrants did pay federal income tax, CA would get back even less money than they do now.

        Again, you and your state should stop living on the backs of us LIBERAL states.

        Thank you.

    • Anonymous

      To quote Dr. Dre in ‘California Love’: “We in that sunshine state with a bomb ass hemp beat.” I would trust him; he’s a doctor. /sarcasm

      • Marcus Christopher McFann

        Actually, its “We in that sunshine state where the bomb ass hemp be.”

      • http://twitter.com/fareedwarrad Fareed Warrad

         Um seriously wtf does this or the convo of illegal immegrants have anything to do with the fucking article? WTF is wrong with you people?

  • http://www.droiddoes.com/ Norm

    Not having Tmobile will not negatively impact California. That state is already in the red.

  • Anonymous

    Are ppl gunna actually comment on this article or will there be a lot of F-AT&T, or leave T-Mobile alone?  I already understand u guys feelings, but instead of just F-AT&T or leave TMO alone, why not post why u are opposed to it.  Here I’ll start…i have AT&T and i dont care for this merger because u T-Mobile fan boys are way too annoying.  U go on and on about how great TMO is, when in actuality it is only great because its cheap.  If u guys loved TMO so much and was so dedicated to it D.T wouldn’t of sold it off to the highest bidder.  IF TMO was such an awesome company they wouldn’t be posting a loss it seems every quarter.  Maybe if they were so great they would be the ones buying out AT&T…wait they cant…maybe they would be the ones to buy out Sprint and expand…wait they cant…maybe they would launch an LTE network to compete with AT&T’s thats coming withing the next few months or VZW that’s already in place…wait they cant.  Give me a break, u fan boys jokers, at least if something happens to my phone i get a new one from AT&T the next day without fail…i dont have to pay for shipping like u TMO faithfuls…actually i have never had to pay for shipping…like ever…all hail the amazing TMO customer service.

    • eliashz

      @ItsMeBeaches We are opposed to it because generally competition is better for all consumers, regardless of whether you’re with AT&T or T-Mobile or Sprint or whomever. You’re right, DT is obviously trying to dump T-Mobile, and T-Mobile can’t afford to buy Sprint or AT&T, but so what? That doesn’t mean that this merger will hurt consumers in the long run – you included. It’s already so bad for consumers with just 4 major providers that fanboys are left to bragging that they get a phone shipped next day free ha ha ha. 

      • Anonymous

        If a company cannot afford to stay afloat, how can one fault another company for buying them?  Believe me i want to see T-Mobile stay afloat because i like their plans, but its obvious they cant do so.  What options do they have?  D.T wants to dump them, they cant survive on their own…should they just keep trying until they fail?

        Actually i wasn’t bragging about my phone being shipped for free…i dont really brag about AT&T, i just get annoyed hearing all the bashing…customer service is just fine for me…when they screw up i tell them i want my money back, and i always get it, i dont have dropped calls…my only complaint about AT&T is their prices, but thats my complaint with every company…in this day and age voice and text should not be as expensive as it was 10 years ago (i know the plans have changed, but the prices haven’t.)  I like that T-Mobile keeps the price down (soft of) but they are going to fail and be bought out anyways…why shouldn’t they be allowed to sell out to the highest bidder?  If VZW wants to buy them 40 billion and AT&T passes, then VZW wins…dont fault AT&T for doing something everyone in their position would do…its called good business.

        BTW there are 4 carriers now and for the most part these companies are being less and less consumer friendly.  TMO has basically introduced a tired data plan.  VZW will dump unlimited data soon, and its a matter of time before Sprint follows suite.  There are 4 companies now and they are all in bed together, i really dont see much of a difference when TMO folds.

      • rickd

        Tmo is doomed.

      • Xdannyhouston

        I love how he’s bashing tmo and raving AT&T as if it’s the best. Listen up so I can school you kid. everything in this world is based on profits. Even though tmo has posted bad quaters, doesn’t mean they wouldn’t be able to survive alone. DT stockholders are unsure about the future profits of tmousa and this isDTs solution. Why just leave your 33 billion dollar company and say good luck versus selling them to regain lost profits??? You wouldn’t tmo is still number four and where I’m from (chicago) not only did I get faster 3G but I had fewer dropped calls. but now I have AT&T and I work for them so I see both sides

    • Anonymous

      Sprint is being a total big crybaby…and this whole “stifle innovation” crap…since when have American telecoms innovated anything besides new ways to rape and pillage consumer pocketbooks. 

      • Anonymous

        Sprint is doing what the big boys always do, they are trying to throw their hands up and get the best concessions available when the deal goes through.. 

        Sprint knows it will, they want to make sure they bleed ATT dry in the process and get everything they can to make sure that happens..I ain’t mad at Sprint.  ATT and Verizon do it all the time, they throw their weight, money and underhanded political connections around every chance they get.. Kudos to Sprint for not just laying down while it happens.

    • Drew

      Are you f’n kidding me??  Your first line in the “..why not post why u are opposed to it” is “…i have AT&T and i dont care for this merger because u T-Mobile fan
      boys are way too annoying. I stopped reading after that. You’re an idiot…

    • http://www.facebook.com/joseph.singer Joseph Singer

      U need to learn the difference between a text message and a reply on a web site.

    • http://www.facebook.com/profile.php?id=100000722296108 Herman Guerra

      Dude you said and it still doesnt register…Its CHEAP.

    • serpentor

      How about this one – I can use my galaxy tab as a mobile hotspot (no rooting) and tmo doesn’t bother me about it.

  • Gus

    California is not the Sunshine State.  California is the Golden State.  The Sunshine State is Florida.

    • Bigduckdong

      you’re late to the party on this one gus

      • Gus

        Um no I’m not late to the party.  My comment was posted 15 minutes after the first one above.  And I entered my post to clarify that California was the Golden State.  And my post was the first one to say what California was …not just what it wasn’t.   

    • Anonymous

      You are right! I am NOR*CAL.. California is not the Sunshine GOLDEN State.  California is the Golden State.  The Sunshine State is Florida .

  • http://twitter.com/stickyicky97 stickyicky97

    fuck california!  That state just needs to break off and fall into the Pacific.  Bunch of Liberal retards!

    • Anonymous

      I like your initiative, but for you to call liberals “retards” can be condescending to mentally handicapped, as most of them are smarter than your average liberal.

    • Jon

      You’ve clearly never been to Orange County. It’s a giant cultural wasteland comprised of chain store strip malls and middle-aged trophy wives with fake lips. It’s a conservative utopia where God seems to shit out sterile personalities who enjoy nice weather.

      • Anonymous

        You are also looking at an area with more “green friendly” government initiatives than pretty much anywhere else in the U.S., something that is largely advocated by liberals. It’s also an area where much of Barack Obama’s stimulus money went. People in Orange County were staunch supporters of Barack Obama because they wanted “change” without ever really know what kind of change they would be receiving. Conservative my ass. People associate “rich” with “conservative”, but I think the Screen Actors Guild would’ve taught you a lesson in making that assumption.

      • Jon

        I don’t associate rich with conservative. Actually, quite the opposite. I associate religious sect as conservative for the most part, which includes Catholic Hispanics (even the illegal ones) and Baptist African communities. Remember when Prop 8 went through in “liberal” California? California is a big state… just because LA and SF are the most talked about doesn’t mean it’s run by us alone. 

        Just to reiterate, I don’t associate rich with conservative. I associate it with bible thumpers, rednecks, and vinyl siding.

      • Anonymous

        So, how many rednecks are there in Orange County? How much vinyl siding are we talking here?

      • Jon

        There are a lot of rednecks in California, especially inland and north.  Btw, Orange County voted for McCain in 2008… so much for their “staunch support” goofball.

    • serpentor

      “fuck california! That state just needs to break off and fall into the Pacific.”

      I mean, you do realize that’s where a lot of this tech stuff started and still comes from, right?

      What kind of tech innovations has North Carolina given the world?

      You proudly proclaim yourself a tech geek, but yet you revile the very source and culture of its birth place.

    • DJ_Chameleon

      What is stupid is your comment. Regardless if I agree or disagree with your opinion of Californians, it has no place in a tech blog and makes you look like a unthinking hater. By the way, I’m in Seattle and have no particular love of Californians either. they have totally inflated our real estate market and their sports teams annoy me so I’m not commenting to defend Californians. You on the other hand are acting the fool.

  • Mark owens

    stickyicky97  you got that right all over the place.

  • Pholey22

    What the hell does public utilities have to do w/ a private company. AT&T wireless is not a public utility. Your water and electric company are examples of a public utility. GOV’T just trying to impose more and more regulations and go figure its the over-regulated state of California. You Cali’s keep living for the Govt. Are you not smart enough to make your own decisions?!? Do they really have to tell you where and what to eat, what wireless company they want you to use, what you can pack for your kids lunch. If you want to regulate something, regulate that border!!

    • Droidman101

      Idiotic much? Its just that sprint chose it as a state to investigate.
      And yes, cell phone service can now be considered a public utility.

  • Robert MacDonald

    CEO Dan Hesse said the deal would “stifle innovation” in the U.S. wireless market.  DAN IS JUST MAD BECAUSE SPRINT IS A DIEING COMPANY AND IF TMOBILE BECOMES ATT THEN SPRINT WILL EVEN LOOSE MORE.  SPRINT JUST SHUT YOUR DOORS AND MOVE ON.  YOUR A SHITTY COMPANY ANYWAYS.

    • Anonymous

      What makes them shitty? I have no complaints about my signal and i pay over $10 less per month than ATT?? Really I want to know why they suck?

  • Anonymous

    Wow sprint what a bunch of crying bitches. Waa waaa there going to be to big…… waa waaa we are going to be the smallest carrier waa waaa. Glad I left sprint long ago they suck.

  • Droidman101

    Actually, sprint’s gaining on att (not like they’d get to att/vzw’s level in the near future anyways though).

  • Formersprintpcsemployee

    Sprint is funny.  They are trying to cast themselves as a carrier for the people but in reality they are simply scared for their very existence.  They are not fighting this tooth and nail so Americans can have cheaper choices for wireless service.

    If DT wants to sell T-Mobile then who are we to force them to stay here seriously?  Can the government really stand in the way and force a company who wants to sell out to stay just because a bunch of value conscious customers on rate plans not even offered anymore are offended?  

    AT&T already stated they will honor T-Mobile rate plans.  If there are customers really only in it for price there still will be the Sprint’s and Metro’s of the world who will gladly have them.

    AT&T will offer T-Mobile subs all the 700 and 850 MHz goodness they never had.  That means they’ll start to get service in underground garages and inside building where they never had service before.  They’ll have access to a M2M community of 130 million users.  They will instantly gain lots of rural coverage (off highway) and in some national/state parks where they had none before.  They will get access to a real LTE network.  T-Mobile subs will get access to new data plans that don’t throttle them down to dial up speeds should they wish to use more data.  

    See the secret is not to try and stop the buyout.  The secret is just to make AT&T agree to certain consumer friendly concessions.  AT&T already claims they are building a real 4G network to cover 97% of Americans.  They will honor T-Mobile rate plans by integrating them into their own.  They will provide T-Mobile subs new phones that will work better with their network.  

    Think smart not stupid and irrational.  Help make AT&T a better company to do business with by sharing your thoughts instead of acting like a welfare state with an overzealous sense of entitlement.   

    • Guest

      So when at&t rolls out their LTE network and if the merger goes through do you really think people with older t-mobile plans will be able to keep them and get an LTE phone?

      While t-mobile does throttle the speeds after you hit the limit of
      whichever data plan you have it is technically unlimited…just not
      unlimited at full speed.  at&t will never go back to an unlimited smartphone data plan so no integration with t-mobile data plans. 

  • Anonymous

    Ahh, CEO Dan Hesse need to move on and focus on sprint and customers more important than his anxiously about ATT and TMO merger. 

  • Phonewhore

    Isn’t this a matter for the SEC and FCC to review, not individual states? California, you are deep in the red, use your resources for more important things.

    • Formersprintpcsemployee

      These “state,” reviews are only reviews.  They don’t decide any matters.  All that happens is that they file their findings to the Feds.  

      Sprint figures that the more bad reviews they send to the Feds the more likely the deal will be stopped.  Pathetic Sprint once again wasting time and money on the dealings of another company when it should be focusing internally.  

  • http://twitter.com/fraliex Brent Fraliex

    I love how people say they love competition. If AT&T didn’t buy T-Mo who do you think will be next in line? Oh Sprint!!! Imagine that Sprint attempting to block a merger because they want to merge with that same company. Which doesn’t make since since T-Mo is GSM and Sprint is CDMA.

  • Anthonyfexas

    I don’t know about anyone but I thought that sprint was the best priced plans it’s simple when they merge and you hate them go to sprint? And sprint is birthing so much and dd you forget they have two smaller carriers tha they market, Metro pcs, and boost?

    Just saying you screw you over and leave we have the final say!

  • JAMES

    DEAL IS NOT GOING TREW : )

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