FCC Riles AT$T By Releasing Report on T-Mobile MergerNov 29, 2011 4:40 PM
The U.S. Federal Communications Commission has allowed AT&T to withdraw its application to buy the mobile licenses owned by T-Mobile USA, as AT&T had requested, but the agency has also released a staff report that disputes many of the benefits the two mobile carriers claimed the merger would produce.
AT&T and T-Mobile parent Deutsche Telekom withdrew their application to the FCC to transfer the mobile licenses after the agency announced on Nov. 22 that staff there had found the US$39 billion acquisition to be contrary to the public interest. The FCC on Tuesday granted the request to withdraw the license transfer application, but released the 157-page staff report on the merger despite opposition from AT&T.
AT&T and T-Mobile "have failed to meet their burden of demonstrating that the competitive harms that would result from the proposed transaction are outweighed by the claimed benefits," the staff report said. "The potential loss [of T-Mobile as a] competitive force in the market is a