AT&T Inc. and T-mobile USA provided improper information for the AT&T’s planned $39 billion acquirement, as reported by the staff of Federal Communications Commission (FCC).
In the Tuesday’s report, it has been said that the companies’ application stay opened to “material questions of fact” such as how the merger will create more jobs. Another emphatic statement by AT&T is that the company will not make the new wireless data network fully for 97% of Americans, if it will not be permitted to purchase T-mobile USA, which has also been rejected by the FCC staff. Moreover, the companies remain unsuccessful to show that the merger is in the public interest leading to the conclusion by the Justice Department that the merger would reduce the competition but could lead to higher prices.
FCC Chairman Julius Genachowski said in a statement,
Competition is the engine of our free market economy and a cornerstone of the FCC’s mandate. Our review of this merger has had a clear focus: fostering a competitive market that drives innovation, promotes investment, encourages job creation and protects consumers.
Analysts are reporting virtually there are no chance of the deal being approved.
On the other hand, AT&T’s top lobbyist, Jim Cicconi, said,
This report is not an order of the FCC and has never been voted on. It is simply a staff draft that raises questions of fact that were to be addressed in an administrative hearing, a hearing which will not now take place. It has no force or effect under law, which raises questions as to why the FCC would choose to release it.
AT&T also showed that the report was not shown to them before releasing it in the public.
The Justice Department went to court in August to oppose AT&T’s takeover of T-Mobile on antitrust grounds. A trial in that case is due to begin on February 13.
Federal Communications Commission (FCC)