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WASHINGTON (CNN PAKISTAN NEWS) -
Communications regulators
released a staff report
criticizing AT&T Inc's $39 billion
plan to purchase T-Mobile USA,
even though they agreed on
Tuesday to let the companies
withdraw their request for
approval.
AT&T and T-Mobile USA owner
Deutsche Telekom AG said last
week they wanted to
withdraw their application with
the Federal Communications
Commission to focus on
defending the transaction from
an antitrust lawsuit brought by
the U.S. Justice Department.
The FCC released on Tuesday an
FCC staff report that found the
touted benefits of the
transaction do not outweigh
the competitive disadvantages.
FCC officials cited staff findings
that the deal would
significantly diminish
competition and lead to
massive job losses.
The staff report also concluded
the merger would not result in
significantly more build-out of
next generation 4G wireless
service than would occur
absent the transaction.
AT&T called the FCC's decision to
release the report "troubling."
"It is simply a staff draft that
raises questions of fact that
were to be addressed in an
administrative hearing, a
hearing which will not now
take place," said Jim Cicconi,
AT&T's senior executive vice
president of external and
legislative affairs.
He added the report had not
been made available to AT&T
prior to the public release.
"We have had no opportunity
to address or rebut its claims,
which makes its release all the
more improper," he said.
AT&T has argued the deal will
accelerate its expansion of
high-speed wireless service to
nearly all Americans and create
jobs.
An antitrust expert with
telecommunications experience
expected the report would be
troubling for AT&T during its
court battle.
Public interest groups had
urged the FCC to release the
report, saying it likely came to
conclusions AT&T would rather
have kept quiet.
The FCC said the companies
were free to come back to the
commission with a new
application.
FCC Chairman Julius
Genachowski said the agency's
review has been focused on
"fostering a competitive market
that drives innovation,
promotes investment,
encourages job creation and
protects consumers.
"These goals will remain the
focus if any future merger
application is filed," he added.
The Justice Department went to
court in August to oppose
AT&T's takeover of T-Mobile on
antitrust grounds. A trial in that
case is due to begin on
February 13.