OVERNIGHT TECH: AT&T fighting to save T-Mobile deal
AT&T is scrambling to fend off multiple attacks on its proposed $39 billion purchase of T-Mobile.
The company urged a federal judge Thursday to throw out lawsuits from rivals Sprint and C Spire Wireless (formerly Cellular South). AT&T argues the two wireless companies lack the appropriate legal standing to challenge the merger.
Also on Thursday, AT&T was preparing to file a statement with the Federal Communications Commission (FCC) to rebut criticism from consumer groups Public Knowledge and Free Press when it received a letter from FCC Wireless Bureau Chief Rick Kaplan. In the letter, Kaplan questions AT&T's claim that the deal would create as many as 96,000 American jobs, saying AT&T "to date has produced almost nothing" to support the job-creation claim.
AT&T went ahead and sent its statement to the FCC combating the consumer groups' allegations, but added a footnote to respond to Kaplan's letter. The company said it would issue a fuller response soon, but for now, the FCC should review AT&T's arguments responding to the consumer groups.
"The transaction will allow the combined company to dramatically expand network capacity, thus directly benefiting consumers by reducing dropped and blocked calls, increasing data speeds, and putting downward pressure on prices," AT&T argues in its letter. "In the process, the merger will spur billions of dollars in additional investment, create thousands of jobs, and significantly narrow the digital divide while advancing the Administration’s rural broadband objectives."
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