AT&T and T-Mobile Merger Hits A Roadblock

Add Your Comments

(The Hosting News) – Due to the potential antitrust law concerns, the merger between T-Mobile and AT&T may have hard times ahead. The FCC regulatory committee charged with overseeing the proposed merger has told both companies to step back from moving forward with the negotiations, while they have a chance to review the case.

In an interview with the Wall Street Journal an FCC official stated, “There’s no way the chairman’s office rubber-stamps this transaction. It will be a steep climb to say the least.”

Current issues around the merger are based around potentially making AT&T the largest mobile provider in the U.S., and that it would be the only one offering a GSM (Global System for Mobile Communication) network. Sprint and Verizon currently operate on a CDMA (Code Division Multiple Access) network.

The FCC feels this merger would be a violation of the antitrust laws setup to prevent a single company from dominating an entire market. AT&T chief spokesperson Michael Balmoris stated, “We are confident that the facts will demonstrate that the deal is in the public interest and that competition will continue to flourish.”

AT&T has high confidence in the ability to sway the FCC on the ruling. During the merger proposition AT&T sweetened the deal to T-Mobile by offering $3 billion even if the FCC did not approve the transaction.

Source: AT&T and T-Mobile Merger Hits A Roadblock

Add Your Comments

You must be logged in to post a comment.