AT&T Doesn't Show Its Cards in FCC Filing

AT&T signaled tough negotiations lie ahead over its proposed $39 billion acquisition of T-Mobile by not volunteering any regulatory conditions in a 381-page filing with the Federal Communications Commission that outlines the public-interest benefits of the deal. Critics complain the transaction could result in higher prices, fewer choices, and obstacles for competitors, especially those requiring access to AT&T’s nationwide network.

By contrast, Comcast and NBC Universal, whose joint venture was strongly opposed by a coalition of cable networks and advocacy groups, made a series of pro-consumer commitments early on to assuage concerns about the combination, which won approval in January. Instead, AT&T emphasizes in its submission that the wireless carrier is facing a severe shortage of spectrum and needs to combine with T-Mobile to free up more airwaves that it can use to deploy new services, including superfast 4G wireless broadband. Joan Marsh, vice president of federal regulatory with AT&T, insisted at a briefing that it is “way too early” to discuss possible conditions. Gary Phillips, associate general counsel with AT&T, noted that the company already has acknowledged that it expects the FCC and/or Justice Department, whose approvals are required for the deal, to impose restrictions. Marsh said the transaction is necessary for T-Mobile because it also faces spectrum constraints and has an added problem: no immediate plans for deploying 4G service. She argued that the wireless marketplace is sufficiently competitive to absorb this corporate union, which would remove the fourth-largest nationwide mobile carrier (T-Mobile) from the marketplace. Despite the possibility it might have to divest some assets to win approval of the purchase, Marsh said AT&T would still fulfill its promise of extending 4G service to 97 percent of Americans.