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C Spire pleased with decision by FCC to block AT&T/T-Mobile merger

November 23rd, 2011 Comments off

Executives with C Spire were pleased with the news from Tuesday that the chairman of the Federal Communications Commission took steps  to block the proposed $39 billion merger of the mobile phone companies AT&T and T-Mobile USA.

“We are pleased the FCC has taken this important step toward a formal, administrative hearing to resolve questions regarding AT&T’s claims regarding its takeover of T-Mobile,” Eric Graham, vice president of Strategic and Government Relations for C Spire Wireless, told the Mississippi Business Journal. “C Spire Wireless has long asserted that this acquisition would be harmful to competition, the wireless industry and consumers. This action shows that Chairman Genachowski — like the Department of Justice — recognizes the harm inherent in AT&T’s bid to eliminate a competitor from the marketplace.”

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The chairman, Julius Genachowski, made the move after the commission’s staff concluded that the deal would harm consumers, kill jobs and result in an overly concentrated wireless phone industry, F.C.C. officials said.

The decision puts another large roadblock in front of AT&T, the nation’s second-largest wireless phone company, in its effort to buy T-Mobile, the fourth-largest carrier. In August, the Justice Department filed a federal antitrust lawsuit to block the merger, saying it would stifle competition.

Mr. Genachowski on Tuesday notified the other three F.C.C. commissioners that he intended to refer the proposed merger to an administrative law judge for a trial-like hearing in which AT&T would be required to show that the deal was “in the public interest.” The commission — currently composed of three Democrats, including Mr. Genachowski, and one Republican — is likely to vote on the chairman’s plan in the next couple of weeks, an agency official said.