FCC Likely to Stay Neutral on Wireless Competition

Apparently, the Federal Communications Commission is expected to take a neutral position on whether the wireless industry is competitive in a coming report on the mobile market.

The FCC's latest assessment of competition in the wireless industry is likely to be closely read by industry observers hoping to find clues as to how the agency will rule on AT&T's proposed $39 billion deal to acquire T-Mobile USA from Deutsche Telekom AG. The FCC and the Justice Department are reviewing the deal.

The FCC's annual report on competition in the wireless industry, which could be released next month, is expected to conclude—as it did last year—that the wireless-phone market has grown more concentrated over the years. But the agency will remain neutral on whether the wireless industry is competitive, sources said.

Prior to 2010, the FCC found that the mobile-phone market was "effectively competitive" and more rules or regulations weren't needed to protect consumers and smaller competitors.