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AT&T, T-Mobile Merger May Hit Roadblock Following FCC Hearing

On Tuesday, Julius Genachowski, chairman of Federal Communications Commission, distributed an order about the ruling that AT&T and T-Mobile's pending merger is not in the interest of the public and thus it must be referred to any administrative law judge.

The full commission is yet to vote for this proposal but, in case it receives approval then the commission will be having the power to effectively reject this deal. Categorically, the commission does not have the power to block any transaction but, still it can approve and disapprove with conditions and also refer the cases to administrative law judges.

According to an FCC official, while reviewing the acquisition deal, the commission discovered that the merging of AT&T and T-Mobile will end up in unprecedented concentration and also massive layoffs.

To reach the conclusion the commission reviewed almost 200,000 pages of documents, held meetings with 100 stakeholders which includes 30 meetings with AT&T and T-Mobile, reported PC Mag (opens in new tab).

The senior vice president of corporate communications for AT&T, Larry Solomon, said that the commissions move is "disappointing".

Solomon said, "It is yet another example of a government agency acting to prevent billions in new investment and the creation of many thousands of new jobs at a time when the US economy desperately needs both."

Ravi Mandalia

Ravi Mandalla was ITProPortal's Sub Editor (and a contributing writer) for two years from 2011. Based in Ahmedabad, India, Ravi is now the owner and founder of Parity Media Pvt. Ltd., a news and media company, which specializes in online publishing, technology news and analysis, reviews, web site traffic growth, web site UI. Ravi lists his specialist subjects as: Enterprise, IT, Technology, Gadgets, Business, High Net Worth Individuals, Online Publishing, Advertising, Marketing, Social Media, News, Reviews, Audio, Video, and Multi-Media. He has also previously worked as Dy. Manager - IT Security at (n)Code Solutions.