Feeds

AT&T hits back: 'T-Mobile USA merger will be great, actually'

FCC's condemnation of proposed union not fair, says telco

The essential guide to IT transformation

AT&T have hit back at a staff analysis from the FCC slamming its proposed merger with T-Mobile USA, saying the regulator "cherry-picked" facts to support its views.

The Federal Communications Commission published its report on the proposed union yesterday, despite AT&T's protests, and accused the firms of trying to mislead it on staffing and other benefits.

Today, the carrier said that the report was not a fair analysis.

"The document is so obviously one-sided that any fair-minded person reading it is left with the clear impression that it is an advocacy piece, and not a considered analysis," Jim Cicconi, senior VP of external and legislative affairs said in a written statement.

"In our view, the report raises questions as to whether its authors were predisposed. The report cherry-picks facts to support its views, and ignores facts that don't. Where facts were lacking, the report speculates, with no basis, and then treats its own speculations as if they were fact."

The statement goes on to lay out arguments against the FCC's issues with jobs and competition and its assertions that the two firms don't need each other to expand LTE to 97 per cent of the population.

AT&T, the largest wireless carrier in the US, wants to slurp T-Mobile USA, the fourth largest, in a deal that has riled the FCC and the Department of Justice.

The regulators feel the resulting company would violate anti-competition laws and wouldn't create the jobs and other benefits that the two firms say it will.

At the end of last week, AT&T and Deutsche Telekom withdrew their merger application from the FCC, but insisted the deal wasn't dead and they would continue to pursue it with the DoJ, returning to the FCC later.

But the move has been interpreted by many as the beginning of the end for the deal.

AT&T and T-Mobile USA parent Deutsche Telekom have reportedly talked about forming a joint venture with assets from their US operations if the merger falls through.

People familiar with the matter told the Wall Street Journal the plan wasn't really fleshed out and was just something they had as a back-up, but that they might be going back for a second look given the regulatory opposition to the merger.

The reason AT&T wants T-Mobile USA so badly, and is willing to take a $4bn hit if the deal can't go down, is that it wants additional wireless capacity to support smartphones. A joint venture that gave the carrier that capacity could be an elegant solution that may sidestep the competition concerns.

A Deutsche Telekom spokesman told The Register that the company doesn't comment on rumours and speculation, but added that it was continuing to pursue the sale of its US subsidiary to AT&T.

"Our focus, as we communicated last Thursday, is on the lawsuit initiated by the DoJ. We will submit a new application for approval, together with our partner AT&T, to the FCC at an appropriate time," he added. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.