From the outside in

Tuesday, August 9, 2011

AT&T Hits Obstacle In T-Mobile, Qualcomm Spectrum Acquisitions

via TechCrunch by Jordan Crook on 8/9/11

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The FCC has just informed good ol’ big blue that its proposed acquisitions of T-Mobile and Qualcomm’s 700MHz spectrum will be reviewed together, rather than as separate transactions. This wouldn’t really be a big deal except for the fact that AT&T may be biting off more than it can chew. By reviewing the two proposed acquisitions together, the FCC is forcing AT&T to justify such massive purchases of spectrum.

In a letter to both AT&T and Qualcomm, the FCC writes: “The Commission’s ongoing review has confirmed that the proposed transactions raise a number of related issues, including, but not limited to, questions regarding AT&T’s aggregation of spectrum throughout the nation, particularly in overlapping areas. As a result, we have concluded that the best way to determine whether either or both of the proposed transactions serve the public interest is to consider them in a coordinated manner at this time.”

Well, AT&T may not be too happy to hear that, but we’re glad the FCC plans to proceed with caution. The acquisition of these companies’ spectrum is a coordinated effort by AT&T. That’s not to say that AT&T has some evil genius plot to screw us by taking over the world one spectrum acquisition at a time, but more that these purchases could inadvertently disrupt innovation, raise prices, and a bevy of other fateful consequences.

Then again, the acquisitions could just lead to my AT&T iPhone getting some service for a change.



Company:
T-MOBILE
IPO:
DT

T-Mobile is a mobile telephone operator headquartered in Bonn, Germany. It is a subsidiary of Deutsche Telekom. T-Mobile has 101 million subscribers making it the worlds sixth largest mobile...

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Company:
QUALCOMM
Launch Date:
1985
IPO:
NASDAQ:QCOM

In July 1985, seven industry veterans came together in the den of Dr. Irwin Jacobs’ San Diego home to discuss an idea. Those visionaries—Franklin Antonio, Adelia Coffman, Andrew Cohen,...

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