Codebreaker

More trials for AT&T

Marc Sanchez Nov 23, 2011

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.’”

 

 

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.