AT&T’s takeover of T-Mobile may get blocked by FCC

 

By Posted 25 Mar 2011, 15:51

We told you recently about AT&T’s proposed takeover of T-Mobile USA, the deal which is said to be worth $39 may not get approval from the Federal Communications Commission. The deal will be studied by the FCC, who will want to see if it is the public’s interest.

Lawrence Latif from the Inquirer is reporting in an article, that a FCC official has told the Wall St Journal the deal may encounter problems getting approved. The official said “It will be a steep climb to say the least”. According to the official, the FCC has not even begun formally evaluating the proposed deal yet.

If the buyout gets the go ahead by the FCC it would make AT&T the largest cell phone operator in the US with 129 million users, and will also become the only GSM carrier in the country. Despite the comments a spokesman for AT&T Michael Balmoris said, “The facts will demonstrate that the deal is in the public interest”, and feels competition will continue to grow.

AT&T has put aside $3 billion to pay T-Mobile’s owners Deutsche Telekom in case the deal falls through, if not approved by the FCC. AT&T may have to wait up to a year before any decision is made though, but deals have gone through before despite FCC officials raising doubts.

Do you hope that the FCC blocks AT&T’s takeover of T-Mobile?

  • Eric Gillette

    I do hope the deal gets blocked. It's anti-competition.

    Also T-Mobile is great. AT&T sucks as a carrier.

    I have T-Mobile and love my service…people I know that have AT&T are always complaining about them.

    • Bob

      I agree that AT&T should not take over T-Mobile. I've had T-Mobile prepaid service for many years and I'm extremely happy with it because you don't have to purchase minutes every 30 or 60 days to keep your service active. In fact I buy a $25 prepaid minutes card and the minutes are good for a year and that's great since I only use my T-Mobile phone for emergencies. I'm afraid if AT&T takes over that type plan will go away because AT&T won't make enough money because they are greedy and I hate them.

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