More trials for AT&T
Yesterday, Federal Communications Commission chairman, Julius Genachowski, asked commissioners for an agency hearing to look into the AT&T/T-Mobile merger. This is a pretty big blow to AT&T, which is already facing an antitrust trial brought on by the Justice Department based on the merger. The FCC hearing could take months, maybe even a year, and will come after the Justice Department proceedings, which are set to start in February of next year.
From the Wall Street Journal:
The unusual decision by the Federal Communications Commission to call the hearing – its first such move in nine years – adds a new roadblock and forces AT&T to consider an unpalatable range of options.
AT&T’s Rock: Carry on with both cases, trying to prove that the nation’s number two carrier scooping up the number three doesn’t hurt competition.
AT&T’s Hard place :Drop the bid and pay T-Mobile $3 billion plus billions more in precious wireless spectrum.
AT&T claims that a merger would be good for jobs. In fact, it says it would create close to 100,000 jobs, but “an FCC official said the combination would lead to ‘massive job losses.’”
As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.
Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.
Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.