Documents from the FCC analysed by The Wall Street Journal show the extent to which the agency resisted a deal for AT&T (NYSE: T) to buy T-Mobile.
The documents said that the merger would stifle competition in most of the nation’s cities and cause increases in what consumers would pay for wireless service.
The Wall Street Journal reports that
Federal regulators issued a stinging 109-page analysis of AT&T Inc.’s proposed $39 billion acquisition of T-Mobile USA, saying it would limit competition in virtually every U.S. city and lead to higher prices for customers.
The AT&T deal has been in trouble for weeks. The telecom has even said it will take a charge of $4 billion for money it would have to pay T-Mobile parent Deutsche Telekom as a break-up fee. AT&T has considered divesting more wireless assets to close the deal. Wall Street remains skeptical.
Deutsche Telekom is left with the prospect of trying to operation the No.4 US wireless carrier in an increasingly competitive market.
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