A new report from the Federal Communications Commission isn’t tipping its hand on how it will come down on the potentially huge AT&T, T-Mobile deal.
The governmental agency said, “a merger can potentially form a stronger provider that restrains competitors from engaging in anticompetitive behavior, or may increase the likelihood that the merged firm may itself, or in coordination with other firms, would obtain or maintain market power.” So, basically the FCC is saying the AT&T, T-Mobile deal could be a good thing or it could be a bad thing. Thanks, guys!
Basically, the FCC is staying neutral on the issue of whether there mobile market is truly competitive and how an AT&T, T-Mobile deal would impact that competition. Under the latest administration, the FCC has been very, very nice to the wireless industry, as it has been on the tip of the spear about the spectrum crisis and it has changed a lot of rules in favor of the mobile industry.
For that reason, I do believe that the AT&T, T-Mobile deal will go through in the first quarter of 2012 but I think that will be the last major merger that the FCC allows in the wireless space for a long, long time. Let us know what you think will happen in the comments, friends.