December
14
AT&T puts T-Mobile deal
AT&T puts T-Mobile deal
“This is clearly not the fair and objective analysis to which any party is entitled, and which we have every right to expect,” Jim Cicconi, head of AT&T’s external affairs, said in a response posted Thursday morning on AT&T’s website.AT&T believes the FCC may have already made up its mind to oppose the merger before analyzing the facts, he suggested. “We believe that the utter absence of balance is clear, and demonstrates that the document lacks all credibility.”
AT&T and T-Mobile will have to submit a status report by Jan. 12, telling the court whether it intends to proceed with the current merger, pursue a revised deal, or drop the whole thing entirely.AT&T would get the assets it was looking for in the first place, T-Mobile would only have to handle marketing and customer support, and Deutsche Telekom would get the huge cash infusion it wants.In the ongoing battle of words, the FCC responded to AT&T’s allegations by calling its analysis unbiased and thorough.
It added that AT&T didn’t bring any new arguments to the table on Thursday.Though AT&T would own all of T-Mobile’s cell towers and spectrum, T-Mobile could sell its service independently and essentially pay rent to AT&T to use their infrastructure. AT&T also claimed that T-Mobile customers would be forever protected from price increases, because AT&T would agree to honor their current contracts for an unlimited time.
But the DOJ fired back. It told the court that its antitrust lawsuit against AT&T was unnecessary if AT&T was no longer applying for the merger. Judge Huvelle signaled her agreement, noting that if AT&T resubmitted its FCC, the whole antitrust proceeding might have to begin all over again.The FCC released the report even though, in a surprise move, AT&T said on Thanksgiving that it is no longer seeking the regulator’s approval for the merger.
Many analysts say they believe that AT&T’s withdrawal was in part an attempt to prevent the FCC from going public with its reasons for opposing the deal.AT&T and T-Mobile will have to submit a status report by Jan. 12, telling the court whether it intends to proceed with the current merger, pursue a revised deal, or drop the whole thing entirely.Though AT&T would own all of T-Mobile’s cell towers and spectrum, T-Mobile could sell its service independently and essentially pay rent to AT&T to use their infrastructure.
