FCC chief signals opposition to AT&T-T-Mobile merger, seeks hearing

FCC Chairman Julius Genachowski has signaled disapproval of AT&T’s $39 billion bid to take over Bellevue-based T-Mobile USA. According to several media reports and information one carrier opposing the deal, Genachowski is circulating a draft order designating AT&T’s proposed acquisition of T-Mobile for a hearing before an administrative law judge. If a hearing were to be approved by the other four FCC commissioners, the administrative law judge would be asked to decide if the deal is good for consumers and for the industry, according to The Wall Street Journal. The move is another serious roadblock to AT&T gaining regulatory approval for the deal. In August, the Justice Department filed an antitrust lawsuit to block AT&T’s proposed takeover of T-Mobile. CNET says that it would be a rare move, and is an indication that the FCC does not believe the merger is in the public’s best interest. AT&T says the deal would speed up innovation, create more wireless spectrum and also expand broadband service to neglected small towns and rural areas. T-Mobile execs also have defended the proposed merger. The move to put the breaks on the deal was applauded by rivals, such as Sprint, which also has opposed the merger. “As Chairman Genachowski said in August when the Justice Department filed its antitrust lawsuit against AT&T, the record before the FCC presented, ‘serious concerns about the impact of the proposed transaction on competition,’” said Vonya McCann, Sprint’s senior vice president of government affairs, in a statement. “That record is complete and more than justifies moving this matter to an Administrative Law Judge for a hearing. We appreciate Chairman Genachowski’s leadership on this issue and look forward to the FCC moving quickly to adopt a strong hearing designation order.”