FCC Moves To Block AT&T Acquisition Of T-Mobile

The merger of the wireless companies was already on the ropes after the Justice Department said it would challenge the deal in court. Now FCC Chairman Julius Genachowski is circulating a draft order that would add an important additional barrier to the deal: It would ask an administrative law judge to consider whether the combo would serve the public interest — after the end of the Justice trial, due to begin in February.That would significantlydelay and complicate the AT&T and T-Mobile’s merger plans. The last time the FCC did this — in 2002 when Echostar wanted to merge with DirecTV — the companies scrapped their plan. Genachowski’s proposal followsa conclusion by FCC staff thatconsumers would be harmed if AT&T and T-Mobile merge. The agency found that it would result in less competition in 99 of the 100 biggest markets (the exception is Omaha). Staffers also concluded that the deal would not improve deployment of 4G services, and would result in substantial job losses from AT&T’s efforts to cut costs. If the FCC decides not to approve a merger like this, then it has to send the case to an administrative law judge for a court-like hearing that would look at whether the deal would serve the public interest. The judge’s conclusion would then go back to the full FCC for a vote.