(Image source: Techno Buffalo)

 

BY MALLORY PERRYMAN

 

You're watching multisource business news analysis from Newsy

 

AT&T’s plan to buyout T-Mobile may be a no-go with the FCC. That is- according to The Wall Street Journal. No, scratch that. According to an anonymous FCC official…quoted in The Wall Street Journal.
 
"There's no way the chairman's office rubber-stamps this transaction. It will be a steep climb to say the least,’ said an FCC official.... The official declined to comment on the record.”

That article set the techosphere on fire. TG Daily declared “FCC takes stand on T-Mobile, AT&T merger”

And The Inquirer proclaimed “FCC official says 'no way' to AT&T's move to buy T-Mobile USA”

But Network World’s John Cox says- hold on a second.
 
“A perfunctory, noncommittal statement… made by an anonymous FCC ‘official,’ is being widely interpreted by anyone with a computer keyboard as an official FCC position on the deal. As quoted, the official's statement actually is what's known as a ‘straw man’ argument -- one that appears to refute a proposition by substituting one that is superficially similar.”

Official statement or not, a blogger for The Unofficial Apple Weblog says- there will be a battle.
 
“So, not exactly a vote of confidence from the FCC so far…  Sprint… has asked federal regulators to take a close look at the potential effects.”


But a TG Daily blogger points out, it’s not like AT&T and T-Mobile didn’t think about all this before they proposed the merger.
 
“AT&T made the deal even sweeter by telling T-Mobile if the FCC didn't approve the transaction, it would still fork over $3 billion for the hassle...it must mean AT&T has exceeding confidence in its ability to sway the FCC. “

Finally, a blogger for DSLReports points out- the FCC has a history of approving mergers it is initially skeptical of. Case in point: the Sirius Satellite Radio and XM Satellite Radio merger.
 
“The problem of course is that the FCC generally does rubber stamp such deals, often applying conditions that offer the illusion of an interest in consumer welfare -- but which usually don't require the companies to do anything they hadn't planned to do already.”

If AT&T's T-Mobile acquisition gets approved, it will be the fourth major wireless carrier merger in eight years.
 
 

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AT&T, T-Mobile Deal: Hard Sell to FCC?

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Transcript
Mar 28, 2011

AT&T, T-Mobile Deal: Hard Sell to FCC?

(Image source: Techno Buffalo)

 

BY MALLORY PERRYMAN

 

You're watching multisource business news analysis from Newsy

 

AT&T’s plan to buyout T-Mobile may be a no-go with the FCC. That is- according to The Wall Street Journal. No, scratch that. According to an anonymous FCC official…quoted in The Wall Street Journal.
 
"There's no way the chairman's office rubber-stamps this transaction. It will be a steep climb to say the least,’ said an FCC official.... The official declined to comment on the record.”

That article set the techosphere on fire. TG Daily declared “FCC takes stand on T-Mobile, AT&T merger”

And The Inquirer proclaimed “FCC official says 'no way' to AT&T's move to buy T-Mobile USA”

But Network World’s John Cox says- hold on a second.
 
“A perfunctory, noncommittal statement… made by an anonymous FCC ‘official,’ is being widely interpreted by anyone with a computer keyboard as an official FCC position on the deal. As quoted, the official's statement actually is what's known as a ‘straw man’ argument -- one that appears to refute a proposition by substituting one that is superficially similar.”

Official statement or not, a blogger for The Unofficial Apple Weblog says- there will be a battle.
 
“So, not exactly a vote of confidence from the FCC so far…  Sprint… has asked federal regulators to take a close look at the potential effects.”


But a TG Daily blogger points out, it’s not like AT&T and T-Mobile didn’t think about all this before they proposed the merger.
 
“AT&T made the deal even sweeter by telling T-Mobile if the FCC didn't approve the transaction, it would still fork over $3 billion for the hassle...it must mean AT&T has exceeding confidence in its ability to sway the FCC. “

Finally, a blogger for DSLReports points out- the FCC has a history of approving mergers it is initially skeptical of. Case in point: the Sirius Satellite Radio and XM Satellite Radio merger.
 
“The problem of course is that the FCC generally does rubber stamp such deals, often applying conditions that offer the illusion of an interest in consumer welfare -- but which usually don't require the companies to do anything they hadn't planned to do already.”

If AT&T's T-Mobile acquisition gets approved, it will be the fourth major wireless carrier merger in eight years.
 
 

'Like' Newsy on Facebook for updates in your news feed

Get more multisource video news analysis from Newsy

Transcript by Newsy

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