FCC Provides Partial Explanation for AT&T Denial
Nov 29, 2011, 5:21 PM by Eric M. Zeman
The Federal Communications Commission today provided a peek at the reasoning it employed when examining AT&T's proposed acquisition of T-Mobile USA. The FCC said that its analysis indicates that combining AT&T and T-Mobile's networks would result in some network efficiencies, but it believes AT&T has overstated what those efficiencies will be. The FCC is concerned that the roaming and backhaul markets will be severely impacted if the merger is allowed; it believes that any cost savings realized by the merger (unlikely as they are) will not be passed down to consumers; it believes that AT&T will eventually upgrade its entire HSPA+ footprint to LTE anyway; and the FCC believes there will be significant job losses. The FCC says that the analysis provided by AT&T concerning efficiencies and job creation is flawed. The FCC will release its entire report later today.
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