The chairman of the Federal Communications Commission has come out against the merger of cellphone giants AT&T and T-Mobile. Julius Genachowski made his position known in a document he circulated to fellow commissioners Tuesday. Genachowski recommends sending AT&T’s proposed $39 billion takeover of T-Mobile to an administrative law judge for review and a hearing. That’s what the FCC does when it opposes a merger. According to an FCC official familiar with the matter, an agency analysis concluded the merger would result in higher prices for consumers, less innovation, less investment in the U.S. and fewer U.S. jobs. The review also cast doubt on AT&T’s claim that only the merger would allow it to build out “4G” high-speed wireless Internet access to cover 97% of the population, up from about 80%. The agency concluded AT&T would likely do so anyway to remain competitive with Verizon Wireless. The official wasn’t authorized to speak publicly, The Associated Press reports. AT&T spokesman Larry Solomon says in a statement that the chairman’s action was “disappointing.” The FCC would be the second government agency to oppose the deal. The Justice Department filed a lawsuit with the U.S. District Court in Washington in August to stop it. That trial is expected to start Feb. 13. Genachowski’s proposed order recommends the administrative law judge begin the hearing after the trial is done. Read the full story from The Associated Press here.
Today’s poll question: Do you think consumers would benefit from an AT&T takeover of T-Mobile?
