Regulators Reviewing T-Mobile’s Acquisition by AT&T

Regulators in California are reviewing wireless carrier AT&T’s $39 billion acquisition of rival T-Mobile.

An acquisition as big as this has hardly run into trouble from state regulators as companies generally focus on getting federal approval by the Department of Justice and the Federal Communications Commission.

California, along with some other US states is delving into the acquisition even as AT&T is trying hard to convince federal regulators to approve the acquisition, which will make the company the largest mobile phone operator in the United States.

According to Bloomberg, California’s Public Utilities Commission, led by commissioner Catherine Sandoval, has launched a series of investigations on the impact of the acquisition on the state’s rural areas, businesses and the wireless technology market.

Meanwhile, consumer interest group Consumer Watchdog has written a letter to U.S. Attorney General Eric Holder and FCC Chairman Julius Genachowski, advising against the acquisition, claiming that it will lead to higher prices.

“Once known for its low prices, T-Mobile has already begun increasing its rates and decreasing options in anticipation of the merger,” Consumer Watchdog said in the letter.