Former FCC Chairman Says Government Will Prevail, Stop AT&T Takeover

Former FCC Chairman Reed Hundt has voiced an opinion on the Department of Justice decision to sue AT&T in order to block their takeover of AT&T and T-Mobile fans are going to like what he has to say. “AT&T is certain to lose” Hundt said to SNL expressing that the acquisition was clearly anti-competitive. “It’s an extremely easy case. The Department of Justice will win the case in court. No Question about it.”

AT&T had hoped that federal regulators would consider the takeover based on a market-by-market analysis, rather than by looking at the wireless market on a nationwide level. Hundt said that the Department of Justice would determine if the deal is anti-competitive or not based on both scenarios, market-by-market and nationally.

AT&T believes they will prevail in court or perhaps avoid court using a two-pronged strategy offering large enough concessions and sway the DOJ back onto the side of approving the takeover. While both AT&T and Deutsche Telekom remain confident that everything is still under control, it’s clear yet again that this deal will prove harder to accomplish than both companies originally thought.

BGR

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  • macman37

    Usually when we hear or read about a big decisive player (this situation 1 out 2) giving their opinion of a yay or nay, it’s typically a longer explanation.  A straight out blunt and to the point comment like this former FCC Chairman’s is very surprising and sums up how this failed merger will turn out.  According to Maggie Reardon’s cNet article, even though we have to wait until about next year to hear the FCC’s decision to let AT&T use T-Mobile’s frequency bands, it’s more than enough time for the DoJ to build up a very solid winning argument why this merger should not happen.

  • macman37

    Usually when we hear or read about a big decisive player (this situation 1 out 2) giving their opinion of a yay or nay, it’s typically a longer explanation.  A straight out blunt and to the point comment like this former FCC Chairman’s is very surprising and sums up how this failed merger will turn out.  According to Maggie Reardon’s cNet article, even though we have to wait until about next year to hear the FCC’s decision to let AT&T use T-Mobile’s frequency bands, it’s more than enough time for the DoJ to build up a very solid winning argument why this merger should not happen.

  • Derrick227

    i don’t give a f*** anymore, soon as my contract end on the 22nd of this month, i’m out and going back to prepaid……boostmobile here i come :D

    • ItsMichaelNotMike

      I hear Boost Mobile is good.  I like that if you pay the bill on time each month (easy to do if you auto-pay) that the unlimited everything bill after 18 months will decrease to $35 monthly. Wow. 

      Because I wanted the Motorola Triumph phone I went to Virgin Mobile and am paying $40 monthly for 2.5 GB data, 1200 talk minutes and unlimited texting.  My Motorola Triumph phone has a 4.1″ display, plays Adobe Flash, makes Skype WiFi calls, and plays NetFlix streamed movies. Oh, there’s no contract, no ETF nonsense, and since Virgin is a Sprint company, my phone uses Sprint’s towers.

      While I am enjoying the money savings, I am watching this “war” with interest after experiencing T-Mobile’s customer service degradation and after seeing numerous T-Mobile employees post in here, inter alia, that the customer is the enemy and we should take our business elsewhere.

      • TMOREP

        european prepaid service.. what i have in romania for a few days made me lol in comparison to the us.

        (orange) 4 Euro for 1500min w/in network + 75out, 1500sms w/in network + 75out.4!!!!! EUROS!!! wtf thats ~$6

      • TMOREP

        european prepaid service.. what i have in romania for a few days made me lol in comparison to the us.

        (orange) 4 Euro for 1500min w/in network + 75out, 1500sms w/in network + 75out.4!!!!! EUROS!!! wtf thats ~$6

      • TMOREP

        european prepaid service.. what i have in romania for a few days made me lol in comparison to the us.

        (orange) 4 Euro for 1500min w/in network + 75out, 1500sms w/in network + 75out.4!!!!! EUROS!!! wtf thats ~$6

    • ItsMichaelNotMike

      I hear Boost Mobile is good.  I like that if you pay the bill on time each month (easy to do if you auto-pay) that the unlimited everything bill after 18 months will decrease to $35 monthly. Wow. 

      Because I wanted the Motorola Triumph phone I went to Virgin Mobile and am paying $40 monthly for 2.5 GB data, 1200 talk minutes and unlimited texting.  My Motorola Triumph phone has a 4.1″ display, plays Adobe Flash, makes Skype WiFi calls, and plays NetFlix streamed movies. Oh, there’s no contract, no ETF nonsense, and since Virgin is a Sprint company, my phone uses Sprint’s towers.

      While I am enjoying the money savings, I am watching this “war” with interest after experiencing T-Mobile’s customer service degradation and after seeing numerous T-Mobile employees post in here, inter alia, that the customer is the enemy and we should take our business elsewhere.

  • Anonymous

    DOJ should be able to sum up this case with these simple questions:
     
    1.)  Why would it take a merger to bring back the 5,000 outsourced jobs? 
     
    “AT&T bragged to its investors in March that the merger would save tens of billions of dollars in the first four years by eliminating redundant customer-service jobs, closing duplicative retail stores and reducing other costs. About half of T-Mobile’s 40,000 employees could lose their jobs in a merger.”
     
    2.)  If so concerned about the American economy, why is AT&T still laying off american jobs to be outsourced in Costa Rica?
     
    3.)  Why not spend $3.5 billon to expand their LTE coverage to 97% of americans…instead of spending $39 billion to complete the same objective?
     
     
    To sum it up, AT&T is like a small child doing and saying anything to get their way.  Once they get their way it will be back to the normal/shady operations as always.  Their primary goal to to eliminate the competion by buying them and they are slowly making this happen…1 by 1.

    • ItsMichaelNotMike

      IMO you are correct, except that the DOJ need not ask your questions inasmuch as it already did.  The answers to your questions is why the Department filed the complaint, the Department did not believe anything AT&T was saying. (E.g. see the complaint allegations saying that AT&T’s real motivation is to take out a competitor, not to provide better service and lower prices to consumers.)

      AT&T is the typical defendant.  The Company makes some great sounding arguments and mounts a snazzy PR defense on TV, including with glitzy ads. Regardless, AT&T will lose the case because while the viewing public might be duped, the judge or jury will not be fooled by the defendant’s bullsheet.

      Moreover, the DOJ has access to information that the public is either unaware of or simply does not have time to digest.  For example, there have been lawsuits where AT&T has been sued for ripping off consumers. While the general public is not aware of the cases, the DOJ is fully cognizant of AT&T’s “rap sheet.”

      As I said before, AT&T is a lousy corporate citizen.  The Company is not fooling anyone at the DOJ.

      • Realcool2000

        Totally agree.

  • Really?

    Are your kidding? T buys the phones straight from the cell phone manufacturers just like Wal-Mart. Both entities source the phones for $5-$200 apiece and MARK IT UP. So T is trying to make profit on both the phone and the service. How do I know this? Well I bought a Nokia N900 ($400-$600 SRP) straight from the manufacturer/retailer (Nokia USA) on clearance for $200. An iPod touch retails at Target for $220 ( probably 50% -100% markup) and has basically the same manufacturing cost as a $600 iPhone 4. Did you not realize this?

    So T turns off its highest paying contract customers by not offering them the same deal it offers new customers. Some might say that all carriers do this. Well, the 850 Mhz carriers have better spectrum and can have this arrogant attitude, up to a point. T should know its place and treat the renewing contract customers better. Call loyalty and threaten to quit to get a deal? That a bad way to instill loyalty.

    In my business, all long-time customers get the same rates for the same service. If I tried to charge more, they would shop my competitors and I would lose. My business is successful.

    People who can’t pay their contract phone bills on time should be on prepaid. That’s really not the focus of any major carrier, except maybe for Sprint with all its MVNOs.

    I like T’s rates and the USA based CS reps that I’ve dealt with over the last few years. We are only with T because they have UMA/Wifi calling. If any of these factors change, we will reevaluate our carrier.

    Why pay a $200 contract termination fee when other carrier like Credo Mobile will pay it for you. I guess you’re not well read.

  • Anonymous

    some more good news this make my phone really happy, at&t get your LTE the hard working way, like verizon did.

  • Auser72

    It’s funny how article failed to mention the ATT leaked document that’s a stark contrast of the listed reasons and benefits of merger/acquisition. And isn’t lack of regulation of big business that is the root of the U.S. Financial problems right now?

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  • Anonymous

    .,. wow,, I just got a $829.99 iPad2 for only $103.37 and my mom got a $1499.99 HDTV for only $251.92, they are both coming with USPS tomorrow. I would be an idiot to ever pay full retail prices at places like Walmart or Bestbuy. I sold a 37″ HDTV to my boss for $600 that I only paid $78.24 for.
    I use EgoWîn.com

  • Anonymous

    .,. wow,, I just got a $829.99 iPad2 for only $103.37 and my mom got a $1499.99 HDTV for only $251.92, they are both coming with USPS tomorrow. I would be an idiot to ever pay full retail prices at places like Walmart or Bestbuy. I sold a 37″ HDTV to my boss for $600 that I only paid $78.24 for.
    I use EgoWîn.com

  • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

    Of course it the United States Government WILL prevail. AT&T doesn’t need T-Mobile to deploy 4G LTE nor do they need
    T-Mobile’s spectrum to grow. Simple as that, the merger needs to be
    blocked. AT&T can use its 39 BILLION dollars to deploy 4G LTE. The
    United States government, knows this and they will NOT put the United
    States of America’s economy in more jeopardy, than it already is just
    because AT&T doesn’t want to compete fairly. So AT&T and
    T-Mobile merger, say GOOD BYE! If T-Mobile wants to sell, its free to do
    so, just not to ANY of the current national wireless carriers in the
    United States. That means Verizon, AT&T nor Sprint Nextel can be
    potential candidates for T-Mobile. So DT, owner of T-Mobile, my advice
    for you is to find yourself another buyer that’s not in the United
    States!