WASHINGTON – AT&T Inc. faces a “very steep climb” to win the vote of Michael Copps, one of five Federal Communications Commission members, for its merger with Deutsche Telekom AG’s T-Mobile USA Inc., Copps said in an interview.
The FCC should ask “some very serious questions about what residue of competition would be left if this merger is approved,” Copps, a Democrat, said in an interview to be broadcast April 2 on C-Span’s “The Communicators” and made available by the network.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
Learn More
AT&T said on March 20 it had agreed to buy T-Mobile USA in a $39 billion deal that would combine the second- and fourth- largest U.S. wireless operators to create the country’s largest. The acquisition, which would leave three major national wireless providers including Verizon Wireless and Sprint Nextel Corp., needs approval from the FCC and Justice Department.
The companies have said they expect regulators to take up to a year to review the deal. Copps, whose term on the commission has expired, may serve until the current session of Congress adjourns, or until lawmakers approve a replacement.
“It’s unclear whether he will still be at the commission when the deal is voted upon, because of his departure from the FCC at year’s end,” Jeffrey Silva, a Washington-based analyst for Medley Global Advisors LLC, said in an interview today. It could take eight to 12 months for regulators to complete their review, he said.
Merger Review
Copps cast the sole vote against Comcast Corp.’s acquisition of General Electric Co.’s NBC Universal as the agency approved the deal in January. “This is maybe even a steeper climb” because the deal would give “a lot of power, a lot of influence” to AT&T, he said.
Copps said he didn’t know how long the merger review would take. “There’s some speculation it could be the better part of a year,” he said. “We’ll just have to wait and see.”
Regulators may call for divestitures, Copps said. “This is something that would be a very steep climb for me in the first place,” he said.
Net-neutrality regulations that bar companies from interfering with subscribers’ Web traffic are “certainly important,” Copps said. Comcast agreed to abide by net- neutrality rules as it won the FCC’s approval for its purchase of NBC.
AT&T fell 10 cents to $30.61 in New York Stock Exchange composite trading on Thursday. The shares are up 9.6 percent since the T-Mobile deal was announced.
