FCC Chairman: ‘Serious concerns’ over impact of AT&T, T-Mobile merger

By on Aug 31, 2011 at 12:41 PM
Business August 31, 2011

In response to the U.S. government’s lawsuit against AT&T’s planned $39 billion acquisition of T-Mobile, Federal Communications Commission chairman Julius Genachowski issued the following statement on behalf of the FCC :

By filing suit today, the Department of Justice has concluded that AT&T’s acquisition of T-Mobile would substantially lessen competition in violation of the antitrust laws. Competition is an essential component of the FCC’s statutory public interest analysis, and although our process is not complete, the record before this agency also raises serious concerns about the impact of the proposed transaction on competition. Vibrant competition in wireless services is vital to innovation, investment, economic growth and job creation, and to drive our global leadership in mobile. Competition fosters consumer benefits, including more choices, better service and lower prices.

AT&T responded to the DoJ lawsuit earlier and said that it plans to ask for an expedited hearing and is confident that the merger is “in the best interest of the consumers and our country.”

Tags:
, , , , , , ,
60 Comments

Related Articles

  • Anonymous

    My eyes must have gone through a merger; is it me or, doesn’t the FCC Chairman look a bit like a grown-up Jonathan – hmmmmmm

    • Anonymous

      ..GUYS,, i cant believe this!! me and my sister just got two i-pads for $42.77 each and a $50 amazon card for $9. the stores want to keep this a secret and they dont tell you.
      go here, EgoWin.cöm

      • Anonymous

        Oh Natalie – how’s the weather in Lagos today? :-)

      • Anonymous

        really? I got $50 cash for only $2, cause it cost me $2 to buy the soda I was drinking when I hacked your paypal and took $50. 

  • http://www.twitter.com/slinky317 slinky317

    Next up: AT&T announces they plan to buy Cricket.  ’Cause they sure as hell ain’t buying T-Mobile anymore…

    • delusion ftl

      Aww, why ruin cricket?  :-)

    • Anonymous

      they can always buy U.S. Cellular

  • Govamentcheese

    Guess verizon pays the government more than AT&T does. They didn’t oppose verizon buying alltel a few years ago. Its pretty hypocritical of the government to allow Vzw to position itself to be the number one carrier and then deny at&t the same right

    • http://www.droiddoes.com/ Norm

      Of course they do, with the great DROID lineup Verizon seems to find no problem beating all three carriers.

      • zacamandapio

        Norm,
        Which DROID do you currently own?

      • Plazmic Flame

        I’m pretty sure it’s the DROID Dildo

      • http://www.droiddoes.com/ Norm

        DROID CHARGE 4G LTE actually…soon to be the Samsung DROID Galaxy S2 4G LTE.

      • http://profiles.google.com/raythelegend1 Raymond Wilson

        they’re getting a droid prime to be exact no GSII

    • http://twitter.com/GRZLA Grizzly Atoms

      Verizon isn’t lobbying against AT&T on this, Sprint is. With T-Mobile gone there would be only one GSM carrier in the US, we currently have two CDMA carriers. You do not know what you are saying.

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

      Alltel was very very small. I think they used the verizon infrastructure.

    • http://www.twitter.com/slinky317 slinky317

      You can’t really compare Alltel to T-Mobile.  Alltel was a really small player, whereas T-Mobile is FOURTH in the market.

      Additionally, the VZW/Alltel merger helped AT&T as well, since they were forced to divest 105 Alltel markets. AT&T acquired 79 of those markets.

      (Edit: changed third to fourth)

      • Anonymous

        Third? I don’t think they’re bigger than Sprint.

      • http://www.twitter.com/slinky317 slinky317

        You’re right, I’m sorry about that – they’re the fourth biggest carrier. The point still stands though.

    • Anonymous

      Apples and oranges.  AT&T is trying to buy another top tier carrier with a nationwide presence, while reducing the number of players from four to three.  Verizon was buying a vastly smaller regional carrier which has virtually no impact at the national level.

    • Pavel Bure

      I’m not sure if you know your facts correctly. Do you remember Cingular? Do you remember how Verizon was number one in terms of subscribers until Cingular merged with AT&T and renamed themselves to just AT&T? Do some research how the original Bell was finally broken apart to prevent a monopoly.

      Then Verizon buys Alltel and gives a decent chunk to AT&T because Alltel already had GSM infrastructure (in addition to its great CDMA network) which it used for roaming agreements to other GSM carriers that needed coverage in those areas. Now Verizon is #1 again in subscribers, network coverage and infrastructure something AT&T has never achieved. They never achieved this since they launched the iPhone and continue to be currently plagued by dropped calls and poor 3G coverage.

      Point of this story…Verizon puts its money back into its infrastructure (backhaul) and improves upon its outstanding network. 3G (EVDO Rev A) is rock solid. Obviously not as fast as HSPA/HSPA+ but way more reliable. Now…with Verizon continually overlaying LTE over its network is second to none whereas AT&T doesn’t re-invest and expand its current network/infrastructure in new technology but instead wants the easy way and insists on buying another network.

      Verizon invests money back, expands, updates and improves its infrastructure. AT&T does not and wants to take the easy way out.

      • Anonymous

        You realize no company in america has invested more than at&t 2 years running right? Not just telecom but any

    • John Barrett Jr.

      what do you mean they  won’t be buying out t-mobile?

    • Anonymous

      Alltell was a mostly rural provider where verizon did not have much spectrum. T-mobile and att’s networks overlap quite a bit more.

    • Anonymous

      Govamentcheese;  You hit the nail right on the head, we in the good ole’ US of A have the best politicians that money can buy.

  • http://twitter.com/GRZLA Grizzly Atoms

    If this deal went through then we would see Verizon trying to buyout Sprint. Verizon already is following AT&T on most of its pricing policies including data. Fuck AT&T.

    • Anonymous

      Grizzlys a beast…

    • Nobodymcnobody

      Verizon and AT&T are he same company using different network structures. They mimic each other Verizon copied AT&T’s Data plan after AT&T copied Verizon’s early termination fee etc, etc, if you say fuck AT&T your saying Fuck Verizon, and if you don’t realize that your an idiot.

  • Anonymous

    unfortunately the deal is not gonna happen in my opinion. i was really looking forward to it. 

    • Anonymous

      There is nothing fortunate to this deal. Were you looking forward to $200/month phone bills, 2GB LTE data caps that you can reach in less than an hour an half and $20 a month text plans that should be free?

      • Anonymous

        first of all people that have high bills are stupid or dont care to look at their bill to understand their plan and change things to reduce it. 2nd 2gb is plenty for most people and i use wifi at home and at school. i dont get on youtube or stream porn or netflix on my phone like you. you want calls to be free too? you want free data with that? please. you dont have to use their texting service. you can set up a google voice account and have texts forwarded to your email. you can block texts. texting, data and calling options are just that, options. no one forces you to get them or use them. you can get a unlocked smartphone and have no data plan. it is your choice. i think you should look into cricket cuz you obviously need someone to tell you what plan you want and how much to pay for it. 

      • Booboolala2000

        Where mobile data usage is going, 2GB is not near enough. At least cox offers you unlimited data at a relatively low cost, you have the option to increase speed. You don’t have those options with mobile. Yet.

      • http://twitter.com/GRZLA Grizzly Atoms

        You sound like a moron. When you buy a smart phone you are 100% REQUIRED to purchase and text and data plan.

      • Anonymous

        this is for grizzly. i used to work for att u idiot. there are ways around the data plan even if u have an iphone or any smartphone. you can block data. and u definitely dont have to get a text plan. thats just what they tell you and you are stupid enough to say “really, like, like, ok, guess thats what i, like, will have to do” so dont tell me i am a moron sir if u dont know what you are talking about. plus i even said if you get an unlocked smartphone (say a nokia) u dont have to get a data or text plan. idiot

      • Anonymous

        I do own an unlocked phone. I have a total of five lines on three carriers and none of my bills are $200. I’ve been using Google Voice since it was Grand Junction and have unlimited data.

        You shouldn’t assume that I am the case that I’m referring to. My point is that this merger is clearly anticompetitive. 

        I’m not surprised that the DOJ has found it so, but I am surprised that they found an FCC Chairman that wasn’t asleep for the first time since the Clinton administration.

      • Anonymous

        The most alarming thing about your attitude is that it’s shared by other people. Keep bending over to these corporate giants, and they will own us forever. You’re right, nobody is forcing me to buy a texting plan, but that doesn’t mean I’m somehow not allowed to complain about the price.

      • Anonymous

        That’s alarmist nonsense.

      • http://twitter.com/GRZLA Grizzly Atoms

        Leo is clearly a 15 year old kid.

      • Anonymous

        This merger isn’t going to change the mentality of people like you whether it goes through or not. if you want unlimited data and cheap service you’re going to go to sprint anyways. If this merger doesn’t go through however I bet you t mobile is going to die slowly anyways, its going to be difficult to recuperate from trying to sell your business and failing. consumers and investors alike wont want anything to do with them, they’re too unstable.
        Also nothing should be free. Yes they make a lot of money off of texting and I’m sure it could be substantially cheaper, but they’re running a business and its called profit. if they sold everything at the cost that it COULD be, they couldn’t run an efficient business. they charge what people will pay, and if you don’t like it, like the above poster said, no one is forcing you to pay it

        tldr;

        if you dont like it gtfo

  • Anonymous

    Heh. He said “Vibrant”.  He’s still waiting for his Captivate to get a Froyo update.

    OOPS!

    Too bad AT&T. Next time you may want to update your Android devices. 

    • http://twitter.com/GRZLA Grizzly Atoms

      The Samsung Galaxy I’s came with froyo. They never got the update to Gingerbread.

      • zacamandapio

        Not here in the US.
        They came with 2.1 not 2.2.

      • http://twitter.com/GRZLA Grizzly Atoms

        Wow, that is pretty embarrassing. Looks like Sammy is on its way to recovery with their new crop of goodies though.

      • Anonymous

        Sorry, no. They came with Eclair, Android 2.1.

        I can go dig up an AT&T Captivate and show you if you like?

      • http://twitter.com/GRZLA Grizzly Atoms

        No need, I googled it right after you said that. 

  • http://twitter.com/n8d n8d

    Uhh…didn’t the FCC look at this MONTHS ago? Where were their “findings” and “concerns” at that point? They just tucked their tail and shut up until the DOJ stepped in, then all of a sudden “ooohhhhh….we have concerns too!”. STFU. 

    • Evernet

      No….the FCC didn’t look at this months ago…..they have a 6 month review window in which to investigate and review any merger…….they were only at 80+ days at the beginning of this week per the WSJ……get your facts straight…..

  • mike vruvas

    First of all Alltel was not small. They were in 39 states WITHOUT roaming agreements. As far as subscriber base they were largest of all regional players. The next 2 combined didn’t have the base Alltel did. It was enough to EASILY put Verizon in 1st.

  • Anonymous

    How silly. T-Mo’s coverage is spotty outside major cities, they’re hemorrhaging subscribers every quarter at an alarming rate, and they are in the process of losing some 5,000 retail outlets nationwide thanks to their RadioShack breach of contract. If someone doesn’t acquire them, they’re just going to go under on their own. How does THAT benefit consumers?

    • IPwn

      It allows for a startup company to purchase or come user new ownership spurring their ideas and creating new jobs with a new wireless provider

      • Anonymous

        A startup company for the sole purpose of acquiring the nation’s number four wireless carrier? Even if they could gather enough capital for that, what makes some random new small company better equipped to run T-Mobile than AT&T?

        A few years ago, Verizon sold some of their wireline business in northern New England to Fairpoint Communications, a much smaller company. There were various warnings at the time that Fairpoint was too small, too underfunded, undermanned and underequipped to take on such an acquisition, but it went through anyway. What happened? Customer service took a nosedive. Rollouts of fiber-to-home services for internet and television, which Verizon had been undertaking, came to a screeching halt. And Fairpoint ended up filing for Chapter 11.

        If you think anyone but AT&T is better equipped to handle T-Mobile, you’re kidding yourself.

  • Sukmysak

    AT&T can suck my balls.  The only people that want this are AT&T customers that hope this will help with customer service, but its not gonna help there nor is it going to help coverage or data speeds.

  • JR

    Well I just have to say to everyone that gave me grief, I TOLD YOU SO!  I posted many many times saying this will never happen and caught flak from everyone saying I’m crazy.

    It’s not a done deal yet and the court has to weigh in with a decision but it ain’t gonna happen folks. 

    I am very happy, now TMO will be much better, have more spectrum, money to expand it’s 42mbs network and LTE coverage.  Yippie.

    • Anonymous

      First of all, who says Deutsche Telekom is going to give that money to T-Mo USA? And second of all, what makes you think that cash compensation is going to be enough to save T-Mo USA from failing? Which it is most assuredly in the process of doing.

      • JR

        True, but the unused bandwidth ATT has to give TMO and the roaming agreements will help TMO USA only!

      • Anonymous

        They’ve already got roaming agreements, and it hasn’t helped them so far. And the bandwidth isn’t really going to make much of a difference. T-Mo is a sinking ship, and it baffles me how its customers would rather see it sink than get purchased. Either way, you lose your carrier, only if it sinks, the competition you have to choose from will be weaker.

  • http://relevanttech.weebly.com iamsupreme

    Nice eyebrows, handsome.

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

    ATT fucked us when they acquired Cingular. Ya, prices stayed stable for a few months, but when it came time to upgrade your phone customers had to go to the ATT pricing. ATT is evil and will continue to lead the way with high pricing. Then Verizon will follow. Sprint please expand you network so I can dump these assholes!

    • Lala

      I remember years ago everyone had a cingular go phone. It was I think $50 and you had no contract and it worked great. Wonderful deal. Literally everyone I knew had one of those things. Then it become At&t and everyone started paying a lot more for a lot less. 

      From the bottom of my heart I thank you DOJ. 

      Please don’t let At&t and vzw rape us. 

  • Anonymous

    doesn’t have to be a small company.. Maybe a cable company like comcast or time warner might like to get into wireless.

  • Kingreggin

    To block this would mean the government itself is commiting fraud. I suggest that Barrack Obama, who is really behind this action be executed for treason against our great nation.

blog comments powered by Disqus