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Possible AT&T Concessions to Save Its Merger with T-Mobile

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WASHINGTON, December 5, 2011 – With its proposed merger facing roadblocks on two fronts, AT&T has withdrawn its Federal Communications Commission application in order to focus on the Department of Justice’s antitrust suit.

One of the ways that AT&T may try to gain the DOJ’s approval would be to sell off parts of the company it is attempting to acquire, T-Mobile.  This sale would be in response to the DOJ’s assertion that the merger, as proposed, would severely decrease competition in the wireless market.

Some experts have speculated that AT&T will try to sell up to 40% of T-Mobile.  T-Mobile has both customers and spectrum that it could sell, presumably to smaller, non-Verizon carriers.  However, this sale would have to gain DOJ approval as well.

If AT&T does sell off some of T-Mobile’s assets, it would be defeating the purpose of its merger, to increase its customer base and gain valuable spectrum for further 4G rollout, the latter being the bigger blow to AT&T’s ability to compete with Verizon.  If AT&T went through with this plan, it would likely improve its chances of DOJ approval, but not significantly.

Should AT&T fail to complete the merger it would owe Deutsche Telekom, T-Mobile’s parent company $4 billion in break up fees, $3 billion in cash and $1 billion in spectrum. AT&T notified the Securities and Exchange Commission that if it were to take this $4 billion dollar hit, it would occur in the fourth quarter.

Editor’s Note: This story has been updated from the week of November 28.

FCC

Federal Communications Commissioner Brendan Carr Optimistic About Finding Common Ground at Agency

Samuel Triginelli

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Screenshot of FCC Commissioner Brendan Carr from C-Span

WASHINGTON, December 5, 2011 – With its proposed merger facing roadblocks on two fronts, AT&T has withdrawn its Federal Communications Commission application in order to focus on the Department of Justice’s antitrust suit.

One of the ways that AT&T may try to gain the DOJ’s approval would be to sell off parts of the company it is attempting to acquire, T-Mobile.  This sale would be in response to the DOJ’s assertion that the merger, as proposed, would severely decrease competition in the wireless market.

Some experts have speculated that AT&T will try to sell up to 40% of T-Mobile.  T-Mobile has both customers and spectrum that it could sell, presumably to smaller, non-Verizon carriers.  However, this sale would have to gain DOJ approval as well.

If AT&T does sell off some of T-Mobile’s assets, it would be defeating the purpose of its merger, to increase its customer base and gain valuable spectrum for further 4G rollout, the latter being the bigger blow to AT&T’s ability to compete with Verizon.  If AT&T went through with this plan, it would likely improve its chances of DOJ approval, but not significantly.

Should AT&T fail to complete the merger it would owe Deutsche Telekom, T-Mobile’s parent company $4 billion in break up fees, $3 billion in cash and $1 billion in spectrum. AT&T notified the Securities and Exchange Commission that if it were to take this $4 billion dollar hit, it would occur in the fourth quarter.

Editor’s Note: This story has been updated from the week of November 28.

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The $3.2 Billion Emergency Broadband Benefit Program: What’s In It, How to Get It?

Tim White

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Pool photo of FCC Acting Chairwoman Jessica Rosenworcel by Jonathan Newton

WASHINGTON, December 5, 2011 – With its proposed merger facing roadblocks on two fronts, AT&T has withdrawn its Federal Communications Commission application in order to focus on the Department of Justice’s antitrust suit.

One of the ways that AT&T may try to gain the DOJ’s approval would be to sell off parts of the company it is attempting to acquire, T-Mobile.  This sale would be in response to the DOJ’s assertion that the merger, as proposed, would severely decrease competition in the wireless market.

Some experts have speculated that AT&T will try to sell up to 40% of T-Mobile.  T-Mobile has both customers and spectrum that it could sell, presumably to smaller, non-Verizon carriers.  However, this sale would have to gain DOJ approval as well.

If AT&T does sell off some of T-Mobile’s assets, it would be defeating the purpose of its merger, to increase its customer base and gain valuable spectrum for further 4G rollout, the latter being the bigger blow to AT&T’s ability to compete with Verizon.  If AT&T went through with this plan, it would likely improve its chances of DOJ approval, but not significantly.

Should AT&T fail to complete the merger it would owe Deutsche Telekom, T-Mobile’s parent company $4 billion in break up fees, $3 billion in cash and $1 billion in spectrum. AT&T notified the Securities and Exchange Commission that if it were to take this $4 billion dollar hit, it would occur in the fourth quarter.

Editor’s Note: This story has been updated from the week of November 28.

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FCC

What You Need To Know About the More-Than-$7 Billion Emergency Connectivity Fund

Derek Shumway

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Photo of Kamala Harris proceeding to break the deadline on coronavirus relief deliberations from the Los Angeles Times

WASHINGTON, December 5, 2011 – With its proposed merger facing roadblocks on two fronts, AT&T has withdrawn its Federal Communications Commission application in order to focus on the Department of Justice’s antitrust suit.

One of the ways that AT&T may try to gain the DOJ’s approval would be to sell off parts of the company it is attempting to acquire, T-Mobile.  This sale would be in response to the DOJ’s assertion that the merger, as proposed, would severely decrease competition in the wireless market.

Some experts have speculated that AT&T will try to sell up to 40% of T-Mobile.  T-Mobile has both customers and spectrum that it could sell, presumably to smaller, non-Verizon carriers.  However, this sale would have to gain DOJ approval as well.

If AT&T does sell off some of T-Mobile’s assets, it would be defeating the purpose of its merger, to increase its customer base and gain valuable spectrum for further 4G rollout, the latter being the bigger blow to AT&T’s ability to compete with Verizon.  If AT&T went through with this plan, it would likely improve its chances of DOJ approval, but not significantly.

Should AT&T fail to complete the merger it would owe Deutsche Telekom, T-Mobile’s parent company $4 billion in break up fees, $3 billion in cash and $1 billion in spectrum. AT&T notified the Securities and Exchange Commission that if it were to take this $4 billion dollar hit, it would occur in the fourth quarter.

Editor’s Note: This story has been updated from the week of November 28.

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