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FCC official says 'no way' to AT&T's move to buy T-Mobile USA

The $3 billion question
Fri Mar 25 2011, 12:23

US TELECOM AT&T is likely to face an uphill regulatory struggle to buy T-Mobile USA.

Last week AT&T announced that it planned to buy Deutsche Telekom's T-Mobile USA business for £24 billion ($39 billion), which would make AT&T the largest mobile operator in the US. While AT&T announced its decision, the US Federal Communications Commission (FCC) still has to approve the deal after going over it with a fine toothed comb before it can go ahead.

One FCC official told the Wall Street Journal, "There's no way the [FCC] chairman's office rubber-stamps this transaction. It will be a steep climb to say the least." The official added that the FCC hasn't even begun to formally evaluate AT&T's proposal and will examine the deal to see if it is in the public interest.

Should the FCC approve the AT&T buyout, the purchase of T-Mobile USA would make AT&T the largest mobile operator in the US with 129 million subscribers. It would also become the only GSM network operator in the country.

Despite that, AT&T's spokesman Michael Balmoris said, "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's executives are similarly confident that the deal will go through, although the company has set aside $3 billion to pay Deutsche Telekom if the deal is not approved.

AT&T could end up waiting over a year for the FCC and the US Justice Department to make their minds up on various aspects of the deal, however major deals have gone though before in spite of FCC officials having voiced such concerns.

With a $3 billion deal cancellation payout at stake, AT&T will agressively press the claim that its buyout of T-Mobile USA will not hinder competition. Mobile customers may, however, think differently. µ

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Comments
I DESPISE AT&T

Every time I turn around, AT&T is taking over one of their competitors. My husband and I were very comfortable with SBC telephone service UNTIL AT&T took over. After that, we dropped that telephone service like a hot potato and never looked back since. THERE IS NOTHING THAT AT&T CAN SAY OR DO TO PERSUADE ME TO ACCEPT THEIR OFFERS!!!!! My husband and I have been with T-Mobile since 2004 and have had no desire to switch to another cell phone provider. If AT&T gets their money-grubbing paws on T-Mobile, then I hate to say that the long term clientele between T-Mobile and my family will come to a screeching halt. WE WILL GO AND GIVE OUR MONEY TO ANOTHER CELL PHONE SERVICE PROVIDER!!!! I have NEVER liked AT&T. They will never change! I will NEVER like AT&T! Their promises are worth as much as the toilet paper they wipe their butts with. AT&T WILL NOT GET A CENT FROM ME OR MY FAMILY!!!!!

posted by : Anonymous, 19 October 2011 Complain about this comment
i hate att

The only reason I became a T-Mobile customer was because att overcharges exageratedly I ended up with bills of us to $600 forvreceiving texts I didn't reply to and they even offered to changevthis if I stayed I didn't I have moved on to T-Mobile to avoid having art I truly dislike that company. If they merge I am going to leave to sprint. Adding on they also bought out bell and started overcharging me in the past as well as with Cingular everywhere I turn to avoid having anything to dobwith this company ends up being bought out it is obvious they get rid of the competition. Also if the FCC approves they most likely would do it by getting paid off

posted by : juggernaught, 13 June 2011 Complain about this comment
AT&T is crap

AT&T is a rip off . Stole $150 from us.
they wanted $150 deposit to before they would hook us phone and internet. Phone was to have unlimited long-distance for 39.00 per month. as per sales person . Internet 19.95. they said it would be on in 3 to 5 days. After 1 week nothing , tons of calls from a borrowed phone and hours of waiting on hold, phone only finally got connected (no inet) . tried to make a long distance call and got recording "this line has long distance block" call more endless hours on hold and finally told them just disconnect it! (they never hooked up internet)....Got first month bill for $89.00 (for making one call that would'nt connect)....they never paid back or acknowleged the $150 deposit .....and turned the $89.00 bill over to a debt collector(making credit rating for us bad). FUK AT&T They IMMEDIATE answer when you call to buy service. But when you want refund or complaint wait for hours on hold only to be given run-around! Had service a whole 3 days before we told them shove it.

posted by : Robbed by AT&T, 29 March 2011 Complain about this comment
Please NO!!!

I left AT&T out of disgust due to their treatment of longstanding customers, and switched to T-Mobile. The service has been fantastic ever since! This would just be throwing the consumer right back into the fire.

posted by : Ken, 28 March 2011 Complain about this comment
Out of context.

Headline is out of context and distorts the truth. Not journalism.

posted by : Ron Davis , 26 March 2011 Complain about this comment
You will pay much more if FCC approval!

1. most low end users--poor people useing T-Mobile, they are happy about the coverage and price they paid.
2. Now they have to pay at least $10 to $50 more monthly--bcz no way atnt will be able to keep two price system.
3. all poor people will be raped--either pay more or their phones become junk. atnt no long need to sim lock to their phones, phone price will go up greatly even with two-years contract.
4. atnt has enough money to lobby FCC.Cingular bought AT&T,atnt bought Cingular...all are richman's game.
5. if FCC approval,what you can do about it? all poor users will sent fax to their congress man and put the FCC chairman in Jail?...

posted by : Johnny, 25 March 2011 Complain about this comment
Goodbye Android Freedom

T-Mobile's UMA service and prices are amazing. If you bought a phone outright, you saved on the monthly bill. Plus T-Mobile had unlimited data. I'll miss all of that.

What concerns me more is that AT&T locks down their Android phones. While we techies can easily figure out how to sideload apps, many won't take the time to learn how. T-Mobile sold pure Google phones and didn't care if you tethered with one running the current Android OS. AT&T would like to charge you tethering is you bye an Atrix dock. Ugh.

Glad I am out of contract. Wish the Government would remember why it broke up AT&T in the first place. I do not approve of this acquisition by the Borg.

posted by : Kimberly Burgess, 25 March 2011 Complain about this comment
NO AT&T

I've been w/Tmobile for over 7 yrs & love it! AT&T couldn't even hook up my internet right. Why would I trust my cell service to them? I'll cancel my service if they buy out tmobile! That's a guarantee!!!!

posted by : Lisa, 25 March 2011 Complain about this comment
Poor coverage? Poor network.

@ashton - If you want better coverage, just move to Verizon. Problem solved.

posted by : Morely the IT Guy, 25 March 2011 Complain about this comment
Just Stamp AT&T on T-Mobile

The ONLY way for this acquisition to succeed is by just stamping AT&T on all aspects of what T-Mobile currently does. Basically, change nothing how T-Mobile currently runs except the name it runs under. If they start eliminating the workers, everything that made T-Mobile what it is will go downhill like AT&T's service today! AT&T would only benefit by letting T-Mobile run how it is currently running now...and learning from their success.

posted by : T-MobileValues, 25 March 2011 Complain about this comment
1 Major Issue is The Divide in Tech

I actually like the idea of ATT getting more resources and expand the network. That is in customer best interest.

The down side that I have considered is that there will be the major divide in the GSM and CDMA. Headsets will basically become exclusive and be virtually useless on other choices.

The one major thing I would like to see in place is that the government force both companies to use both technologies. Set out a roadmap for both to cross adapt so that this divison does not further lock customers in, and make us have to get a new phone eversingle time we want to change service providers. The link between phone and provider seriously needs to be severed on accessing voice and data networks. We need a standard for hardware, software difference is fine, but this industry seriously needs to standardize around a flexable hardware config just like Wifi, bluetooth etc...

posted by : Mr. Anderson, 25 March 2011 Complain about this comment
Hell to the no

T-mobile's customer service is great. All communications with them have been handled cheerfully, swiftly, and competently.

AT&T customer service is an insult to anyone with an IQ above plant life. It took me over a year to convince them that I had closed my account, while they continued to bill me. Hours and hours of circular queues and incompetent customer disservice Hell.

I would rather have my tonsils removed through my rectum than ever deal with AT&T.

posted by : Mistermike, 25 March 2011 Complain about this comment
So What?

Deutsche Telekom is selling TMO, its a business choice, i believe either way if the buyout happens it happens if not, i dont see TMO being around much longer either way. Service is spotty to say the least even in big markets such as Denver, San Diego and Los Angeles. Customer service is so-so most of the time you can someone in India so theres a language barier. TMO doesnt care if your service is working as long as they get there money.

I have complained to tmo numerous times in the past for no service, dropped calles, data outages and never recieved a credit on my bill, or an answer. Also consistant over charges on my bill as well. As for coverage, we would actually get real 4G with the merger unlike the advertising tmo is using saying 4G when it is only 3.5G (HSPA+) which by ITU standards is no where near 4G, we would see better coverage and expanded coverage as well.

As far as phones are concerned if TMO USA was using the Worldwide Standard for frequencies no one would need to purchase a new phone when and if the takeover happens so you can blame AT&T for everything a lot of it is TMO USA fups that are causing so much "concern".

posted by : Nick, 25 March 2011 Complain about this comment
Ma-Bell here we go again...

Instead of spending the money on improving their lousy customer relations and mediocre dropped-call phone service, AT&T is attempting to spend billions to wipe out a superior (and only) GSM phone service competitor. can you say- Ma-Bell GSM monopoly...

posted by : P Stewart, 25 March 2011 Complain about this comment
no att

All I know is I do not like atnt, can't stand them, I. Love tmo, but if this deal goes through,I think the prices will go up, service will go down, I will not be a tmo customer no more, I would go to verizon, or sprint if I had to,

posted by : love tmo, 25 March 2011 Complain about this comment
Of course it will be approved...

How often is a M&A not approved in the US?

And, yes, in nearly all cases, M&A is not in the public interest and reduces competition. But the FCC and FTC are heavily populated with industry sympathetic resources (typically former industry executives themselves), so there will be a dog & pony show, but it will be approved in the end with some number of pointless concessions to show that a fight did indeed occur.

Want a recent example? Look no further than the Oracle / Sun M&A...prices have already gone up and are looking to go higher...

posted by : unbound, 25 March 2011 Complain about this comment
Really Bad Idea

I have experienced an AT&T take over before with Cingular. The prices went up, service went down, and the technology didn't keep up. I have been with T-mobile for 7 years and love it! The new HSPA+ has been excellent in my area. I fear they (AT&T) are coming to ruin a good thing once again.

posted by : Bryan Baker, 25 March 2011 Complain about this comment
NO WAY!!

I have been with T-mobile for almost 8 years now and I love them. I never drop a call anywhere but my friends who do have At&t drop calls all the time! If they do buy out T-mobile I will be canceling my services and going somewhere else.

posted by : KD, 25 March 2011 Complain about this comment
T-mobile cheap and best

As long as you live in city T mobile have very good service, the best thing they have is the pricing, I will oppose this merger we will not have much choice left.

posted by : John Ding, 25 March 2011 Complain about this comment
clusterfu*k

The only "help" those of us w/Tmobile will get from AT&T is prices jacked up & their clusterfu*k of a data network(which has been made worse since they added the Apple Idiot phone).
The only so called positive I have heard from the public is ohhh can Tmobile get the Idiot phone now?? If that was to happen I'm moving over to TC&AS...two cans and a string. Is everyone so up their own a$$ that they are forgetting the shady crap AT&T did in the past that caused the government to step in!?

posted by : sinclair, 25 March 2011 Complain about this comment
Wishfull thinking

There is no way this merger will be in the best interest of consumers.... and there is no way the FCC is, in the end, going to block it. Large corporations spend millions of dollars during election campaigns to ensure that our elected officials don't get in their way.

posted by : Intruder, 25 March 2011 Complain about this comment
wow

fu** the FCC, it shouldnt be up to them..if tmobile and at&t both agreed to it then let it be there are other carriers...screw the fcc. for the people who auctually want better coverage this is the time when they can look forward to the merger...stop trying to intervene on everything

posted by : ashton, 25 March 2011 Complain about this comment
Grow the Death Star: NOT!

I'm a former AT&T subscriber, and despite training its agents to act super friendly and supportive, the Corporation's core customer-hostile policies, poor geographic coverage, and lousy network reliability compelled me to cancel early and accept paying the termination fee in order to escape its clutches. And, I'm an iPhone owner who opted out before Verizon got the iPhone! The last thing we need is for the Death Star to become the sole GSM carrier in the USA.

posted by : Bravo Six, 25 March 2011 Complain about this comment
Monopoly

This is simple. Go look at the rates for AT&T, Verizon, Sprint, T-mobile. They are all the same except for T-mobile. Once T-mobile is gone so is the competition....

posted by : Jim, 25 March 2011 Complain about this comment
Nice Job

This would have been a nice job if it weren't for the out of context title. Seriously, there is a difference between "No way" and "no way it will get rubber stamped". Way to get your page count up.

P.S. Like how I took my comment out of context to title my comment?

posted by : MarcusMarcus, 25 March 2011 Complain about this comment
Atnt must not take over!

Do not let this happen! I absolutely love tmobile, and refuse to have atnt. If I wanted and, I would have moved,my contract was expired at tmobile. I did a lot of research and decided to stay with tmobile and ive been with them for ten years now. Please dontlet this happen!

posted by : Alexis Cooper, 25 March 2011 Complain about this comment
Atnt must not take over!

Do not let this happen! I absolutely love tmobile, and refuse to have atnt. If I wanted and, I would have moved,my contract was expired at tmobile. I did a lot of research and decided to stay with tmobile and ive been with them for ten years now. Please dontlet this happen!

posted by : Alexis Cooper, 25 March 2011 Complain about this comment
YES DOUBTFUL!

I agree, what a BS! In the public interest and competition will flourish!
Yeah right!
Almost everywhere I go, people are overall skeptical and not happy about AT&T buying T-Mobile!
I don't appreciate it either.
I hope the FCC says no.

posted by : Chris, 25 March 2011 Complain about this comment
Misleading & inflammatory Headline

FCC official says "No way"...when in reality he says" no way it will get rubber stamped."

You be bad trolls

posted by : Tom, 25 March 2011 Complain about this comment
I have doubts

I'm a T-Mobile customer but my phone is mostly a paperweight with no signal unless I am close to a major highway. My phone is for emergency use only. I'm not into texting or any of the other things people use their phones for. Mine is a bare bones phone with no bells and whistles that does nothing but make and take calls. There's an occasional voice mail. For this service, I pay $10 a year to renew my minutes. IF AT&T buys T-Mobile out, I'm wondering if my calling area would expand. If AT&T buys T-Mobile out, I'm wondering if my plan would change to one with a price increase. Hmmmmmmmmm. No way to know unless it happens.

posted by : Tommie, 25 March 2011 Complain about this comment
Doubtful

AT&T's spokesman Michael Balmoris said, "We are confident that the facts will demonstrate that the deal is in the public interest and that competition will continue to flourish."

Wow, really?! What a load of BS! How does this help competition?

posted by : John, 25 March 2011 Complain about this comment
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