Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

The AT&T and T Mobile deal in danger

By Ritika Sharma Subscribe to RSS | November 26th 2011 | Views:
loading
 
  



The chairman of the Federal Communications Commission (FCC), Julius Genachowski took steps Tuesday to thwart AT&T's proposed $39 billion takeover of T-Mobile USA.

Genachowski circulated a draft order among other commissioners asking for an administrative hearing on the acquisition. The FCC is the second government agency to question the AT&T/T-Mobile deal. The Department of Justice (DOJ) filed a civil antitrust lawsuit at the federal court Washington in August to block it.

The move was made after FCC officials concluded the AT&T's acquisition of T-Mobile will shrink competition among wireless carriers, lead to higher prices, less investment, massive job losses and hurt consumer interest. Larry Solomon, senior vice president for corporate communications at AT&T, called the F.C.C.’s action “disappointing.”

He 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 U.S. economy desperately needs both. At this time, we are reviewing all options.”

“The record clearly shows that in no uncertain terms this merger would result in a massive loss of US jobs and investment,” said senior FCC official. If the FCC’s request goes through, the administrative hearing won't begin until after the DOJ trial against AT&T, which is scheduled to start Feb. 13.

AT&T’s arguments:- Meanwhile, AT&T claims the acquisition will lead to billions of dollars in investment and create as many as 96,000 quality jobs in the United States.

They also have plans to use T-Mobile’s towers and airways to improve wireless service quality to customers and expand the 4G network across most of the country, especially in rural areas.

Rejecting every part of AT&T’s arguments, a senior FCC official said, “The record clearly shows that in no uncertain terms this merger would result in a massive loss of US jobs and investment.”

2nd major govt hurdle:- The FCC is the second government agency to question the AT&T/T-Mobile deal. The Department of Justice (DOJ) filed a civil antitrust lawsuit at the federal court Washington in August to block it.

If the FCC’s request goes through, the administrative hearing won't begin until after the DOJ trial against AT&T, which is scheduled to start Feb. 13. The move was made after FCC officials concluded the AT&T's acquisition of T-Mobile will shrink competition among wireless carriers, lead to higher prices, less investment, massive job losses and hurt consumer interest.

With both the DOJ and FCC opposing the deal, experts say the chances of it going through are slim. If the deal fails AT&T will pay T-Mobile a break-up fee of around $6 billion in cash and spectrum rights under terms of its merger proposal.

Craig Moffett of Bernstein Research said to investors, “Ever since the Department of Justice filed in August to block AT&T’s deal to acquire T-Mobile, the deal was on life support. Yesterday, the FCC disconnected the respirator.”

Ritika Sharma - About Author:
Here you can get the latest updates about Finance news. Get more details about Finance and investment news .

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/management-articles/the-at-t-and-t-mobile-deal-in-danger.htm

Related Management Articles Subscribe to RSS

The country has come together with the state news of India
Published by Nidhigupta on July 11th 2012 | Business
We all understand that it is essential to have proper news not just about the country as a whole but...
 
World wide web features news headlines today
Published by Nidhigupta on May 17th 2012 | Business
Newspapers are a major source of information. Online news is also much in demand. News websites pla...
 
Hot updates about the latest India news
Published by Nidhigupta on June 15th 2012 | Business
In India, people have started developing a keenness for educating themselves with the most recent an...
 
India news gaining lot of attention
Published by Nidhigupta on May 3rd 2012 | Business
Many people might consider India to be a country of the third world. However, very quick development...
 
Where does bankrupt stock come from
Published by Julia Roger on January 17th 2012 | Business
Obviously when a company gets into trouble it inevitably involves debts. Amounts of money need to be...
 
Get updates about world news
Published by Nidhigupta on May 12th 2012 | Business
How much ever we deny it the fact is that the whole world is connected to each other and any event t...
 
How to start real estate news letter
Published by Dany on April 19th 2012 | Business
Real estate news letter is considered to be an effective advertising and marketing tool for real est...
 
The latest news that reflect poor conditions of mother earth
Published by Nidhigupta on July 19th 2012 | Business
However, the breaking news is not just limited to these natural calamities. Human still undertake m...
 
Get updated about latest state news.
Published by Nidhigupta on May 15th 2012 | Business
Approximately, today, India's population is around 121 crore. Every second of every day, several eve...
 
The recent progress made by online news
Published by Nidhigupta on June 26th 2012 | Business
Latest news is the news that has occurred in the recent past i.e. recently. Information is the most ...
 
Do you need to get rid of your Bankrupt stock?
Published by Mary Porter on June 28th 2012 | Business
The turbulent global economy has left many companies with bankrupt stock that they cannot shift, eit...
 
Stay tuned to the latest India news
Published by Nidhigupta on June 21st 2012 | Business
Nowadays, breaking news has become a state of art. If not delivered fresh, it may become stale the ...
 
Get updated with the latest India news
Published by Nidhigupta on June 6th 2012 | Business
India is a very unpredictable country. Anything can happen anywhere and at anytime in this nation. A...
 
Why should businessmen read Indian business news
Published by Nidhigupta on July 2nd 2012 | Business
Since the post-independence period, India's business and trade economy has grown and has flourished ...
 
Essential Investment Training provides you with valuable training for novice and experience stock traders alike
Published by James Blee on June 16th 2012 | Business
Essential Investment Training is a reputable business that allows the average person the ability to ...
 
Keep yourself updated with all the bihar news
Published by Nidhigupta on July 10th 2012 | Business
Bihar, sited in the eastern parts of the beautiful lands of India is very rich in heritage and cultu...
 
Get Top news that woes the World
Published by Nidhigupta on May 7th 2012 | Business
News can be anything that is relevant and interesting to the readers. These days it is important for...
 
Get success in stock market with Stock Market Browser
Published by William Jackson on July 30th 2012 | Business
Stock Market Browser has come up as a beneficial and ideal tool that is capable of taking an instant...
 
Bollywood news- a boon or a disadvantage
Published by Nidhigupta on July 24th 2012 | Business
We are all fond of the bollywood celebrities and the spicy bollywood gupshup for which we are glued ...
 
Updates of world news through internet
Published by Nidhigupta on May 28th 2012 | Business
The most greatest aspect of these news channels is that there has been a complete merger of various ...