FCC Chief Declares AT&T/T-Mobile Merger a Turkey, Prepares it for Slaughter

FCC Chairman Julius Genachowski dropped an unwelcome Thanksgiving treat on AT&T's lap Tuesday by announcing he wants an administrative hearing on the carrier's plan to gobble up T-Mobile.

By Brad Reed
Tue, November 22, 2011

Network WorldFCC Chairman Julius Genachowski dropped an unwelcome Thanksgiving treat on AT&T's lap Tuesday by announcing he wants an administrative hearing on the carrier's plan to gobble up T-Mobile.

SLIDESHOW: 2011's hottest tech M&A deals

TOUGH WEEK: AT&T reports attempted customer data hack

Genachowski today submitted a proposal for an administrative hearing on the $39 billion merger that AT&T first proposed earlier this year. If the full commission decides to request such a hearing before an administrative law judge, it could effectively end AT&T's T-Mobile takeover bid if the judge rules concurs with the FCC's assessment that the merger would not be in the public interest.

Slideshow: Match Made in Hell: 7 Worst Tech Mergers and Acquisitions

And even if AT&T and T-Mobile successfully countered the FCC's arguments at the hearing it would still further hold up the proposed acquisition for another year. As noted by The Wall Street Journal's Amy Schatz, the FCC hasn't sought such a hearing since 2002 when it requested one for a proposed merger of EchoStar and DirecTV. In that particular case both companies eventually decided to drop the merger proposal.

Essentially the FCC's actions today mean that AT&T and T-Mobile will have the opportunity to make their case for why the merger is in the public good before an administrative law judge. The FCC will counter.

AT&T was predictably not happy about Genachowski's decision and said it was reviewing "all options" to keep the merger afloat.

"The FCC's action today is disappointing," said Larry Solomon, AT&T's senior vice president of corporate communications. "It is yet another example of a government agency acting to prevent billions in new investment and the creation of many thousands of new jobs at a time when the U.S. economy desperately needs both."

The proposed administrative hearing is yet another headache for AT&T, which also faces a civil antitrust suit filed by the U.S. Department of Justice aimed at blocking the merger. In its initial filing of the antitrust suit, the DOJ argued that the proposed merger would significantly damage competition in the wireless industry, especially since T-Mobile has historically offered low-cost wireless voice and data services for customers. The DOJ also contended that any efficiencies gained by combining AT&T and T-Mobile spectrum would not be enough to offset the damage done to U.S. consumers by further consolidation of the wireless industry.

In the wake of the DOJ suit last summer, Genachowski issued a public statement that didn't directly support or oppose the DOJ's suit but that acknowledged that the FCC also had "serious concerns about the impact of the proposed transaction on competition."

AT&T's proposed merger with T-Mobile has come under criticism from consumer groups, rival wireless carrier Sprint and analyst firms such as the Yankee Group, who contend that the merger will lead to the emergence of a duopolistic wireless telecom market controlled largely by Verizon and AT&T. Were the merger to pass regulatory muster, it would be the fourth major wireless carrier merger in eight years, following AT&T-Cingular in 2004, Sprint-Nextel in 2005 and Verizon-Alltel in 2008. AT&T would become by far the largest wireless carrier in the United States with more than 130 million subscribers.

Read more about data center in Network World's Data Center section.

Originally published on www.networkworld.com. Click here to read the original story.
What is Tech Briefcase?
TechBriefcase is a new, free service where IT Professionals can Search, Store and Share IT white papers and content like this. Learn more
Bookmark content
Speed up your research efforts with content across the web.
Search and Store
Find the white papers you need. Create folders for any topic.
View Anywhere
Open your briefcase on your iPhone, tablet or desktop. Share with colleagues.
Don't have an account yet?
As more and more CIOs are beginning to see significant benefits from letting employees choose the device they use to get their jobs done, the Bring Your Own Device (BYOD) trend is spreading. According to the Computerworld Consumerization of IT Study, about half of the 604 respondents said their organizations allow employees to do work using their own devices either away from the office or at work. Whether these devices are smart phones, tablets, or laptops that are used in the office or while working remotely, companies that embrace this trend are finding their employees are more productive and experience greater job satisfaction. What's more, enterprises can significantly reduce up front costs and allow for flexible work hours by letting employees use their device of choice anytime, from anywhere.
In this paper, we analyze the delivery of live and on-demand mobile video content. It focuses on specific ways in which organizations can follow best practices to ensure the experience of video communication is maximized for viewers, while keeping corporate networks running smoothly.
There's no denying that the wisdom of a company resides in the heads of those directly responsible for the non-routine work of the organization. There's also no denying that management teams are looking to find better employee communications solutions and reduce costs. This is coupled with increased demand to better manage projects, customer service, product launches, training, and sales by workforces that are separated by time zones and using mobile devices. This need for wide-scale communications at lower cost is fueling recent organizational demand for scalable, affordable enterprise video and employee generated video content or "EGC"
The wave of video in the enterprise will continue to rise as the communication medium and the enabling technologies become ubiquitous in our daily personal and business lives. Businesses must be fully aware of the challenges and requirements of deploying an enterprise video solution. With a proper approach, adequate preparation, and skilled analysis, your organization will be able to accurately build an effective, scalable YouTube for the Enterprise framework that leverages your existing IT infrastructure and is aligned with your business goals.
This whitepaper aims to identify those users, the reasons they exist and to outline what your organization can do about them.
A mid-sized business needs the same financial performance control and measurement capabilities as a large corporation, but in a solution that's affordable, easy to implement and scalable. This guide simplifies the search by helping CFOs understand the 10 must-have characteristics of today's best financial performance management solutions.
Date/Time: June 5, 2012, 11:00 a.m., EDT, 4:00 p.m. BST / 3:00 p.m. UTC

Please join us for this webcast, as Dr. Barry Devlin, Founder and Principal, 9sight Consulting, describes what operational analytics can do for your business and reviews an architectural approach that will enable you to make it a reality.
Have you been thinking about what it would take to start using virtualization? Or do you know the basics and want to find out more? No problem. This webcast is designed for anyone with little to no knowledge of virtualization technology. Attend this webcast to learn:

-A basic overview of the business value of the technology and some key capabilities that make virtualization so valuable to IT and the businesses you serve.
-The basics for creating virtual machines and the key choices that can be made along the route to deployment.
View this on demand webcast to learn if moving business communications to the cloud is right for your business. Featured industry experts DMG Consulting LLC president, Donna Fluss, Frost & Sullivan principal analyst, Michael DeSalles, and Interactive Intelligence senior vice president, Joe Staples discuss this topic and help you answer your pressing questions at the conclusion of this web event.
In this webcast, Vantage Point Performance's Michelle Vazzana will reveal how to coach your reps to better performing pipelines.
In this webcast produced by the Sales Management Association (SMA), Forrester's Scott Santucci will explore the new sales paradigm and discuss how businesses must transform their selling models into dynamic, communications-intensive systems, empowering individual sellers to define, create and deliver value to customers.
SAP Sales OnDemand is intuitive, leveraging social collaboration capabilities you already know how to use. It enables fast, effective team collaboration and account management to help you sell more effectively. Watch the video to see how!
Newsletter Sign-Up »

Receive the latest news test, reviews and trends on your favorite technology topics

Choose a newsletter
  1. View all Newsletters | Privacy Policy
Sponsored Links

High performance. Delivered. Click to see Accenture's client successes

Master the cloud with the power of convergence from HP

Connect with IT leaders redefining mobility at the Enterprise Mobile Hub

Choose New and manage one device instead of 170

Choose New for 8x the firewall and NAT performance

Check out a smart way of mobilizing your business with enterprise-ready Samsung Mobile.

Redefine your data center with HP servers.

Enhance your business with Windstream IT Solutions. Speak to someone local.

BlackBerry® Mobile Fusion. Different mobile devices. One platform.

CYBERMARYLAND | Learn Why Maryland is the Epicenter for Cybersecurity

Get Ethernet speeds from 1 Mbps to 10 Gbps - Comcast Business Class

Cognizant. Leading in Business, Application & Technology Services

Collaboration: driving better business outcomes

Gain cutting-edge insights at MIT in 2-5 day executive programs.

Click to see how Accenture has delivered high performance to clients

Complimentary Gartner Report on BYOD: Media Tablets & Beyond. View Now

Elevate storage agility and efficiency with HP 3PAR storage.

Choose New and slash the number of devices you manage

Customized information views & Twitter events at New Fulcrum Point

Splunk translates machine data into "aha" moments for IT and the business.

ManageEngine Desktop Central - Automate and Audit Your Desktop Management! Learn More...

Cloud Readiness Starts with Intel® Technology

Visit the Virtually There Learning Page to learn how to use virtualization to your competitive advantage.

Free: Hunter Muller's "The Transformational CIO."

Join us for an upcoming Microsoft 365 live online demo event.

Discover your easiest path to unified communications

Virtualizing Your Infrastructure Just Got Easier

Connect with global CIOs now at Enterprise CIO Forum

Resource Center