The proposed mega merger between AT&T and T-Mobile USA has some major regulatory hurdles to clear.

The merger was announced Sunday and already has ignited a fierce battle among politicians in Washington and consumer groups who fear it will lead to higher prices.

As expected, competitor Sprint is voicing its opposition to the whopping $39 billion deal, what Bloomberg is reporting as the biggest acquisition worldwide in more than a year. Sprint says it could seriously disrupt wireless competition in the country. Itself viewed as a potential merger partner for T-Mobile, Sprint’s objections appear self-serving, as it will be one of the companies hardest hit if the deal materializes, but most industry experts agree close scrutiny is needed to protect consumers from potential price hikes and less choices if the market is overly concentrated. The Federal Communications Commission, because of the transfer of wireless spectrum licences, must approve the deal, and the Department of Justice will likely review it for antitrust issues.

The proposal combines the nation’s second largest mobile phone carrier, AT&T, with the fourth largest. The Wall Street Journal reported Monday that the deal widens the gap between Sprint and its two larger rivals, and would place it last among the national wireless carriers. Sprint's shares, which have gained 19 percent this year through Friday’s close, WSJ noted, fell 12 percent to $4.43 Monday morning.

“If approved, the merger would result in a wireless industry dominated overwhelmingly by two vertically-integrated companies that control almost 80 percent of the U.S. wireless post-paid market,” said Overland, Kan.-based Sprint in a statement. “AT&T and Verizon are already by far the largest wireless providers. A combined AT&T and T-Mobile would be almost three times the size of Sprint, the third largest wireless competitor.”

There is now speculation that regulators could take up to a year to study the proposal and would likely require some divestitures and expansion of rural coverage if the deal wins approval. Read more here.

To post a comment, please log into your IND account. If you do not have an account, click the "register" button to create one. Facebook comments can be used as an alternative to creating an account at theIND.com.

Loading
Chart
ABiz Stock Watch
o Home Bancorp 20.12 ▲0.02 (0.10%)
o Frank's International 24.66 ▲0.21 (0.86%)
o IberiaBank Corp 66.66 ▲0.24 (0.36%)
o LHC Group 21.10 ▼0.27 (-1.29%)
o MidSouth Bancorp 16.43 ▲0.18 (1.11%)
o Petroquest Energy 5.44 ▼0.06 (-1.09%)
o PHI Inc. 41.90 ▲0.81 (1.97%)
o Superior Energy 31.63 ▲0.06 (0.19%)
o Stone Energy 45.60 ▲0.62 (1.38%)
o Teche Holding 76.82 ▼0.12 (-0.16%)
o Facebook Inc. 59.72 ▲0.63 (1.07%)
o Twitter Inc. 44.42 ▼1.10 (-2.42%)
o Gannett 26.64 ▲0.69 (2.66%)
NYSE:HBCP

Home Bancorp

Company ID [NYSE:HBCP] Last trade:20.12 Trade time:3:59PM EDT Value change:▲0.02 (0.10%)
NYSE:FI

Frank's International

Company ID [NYSE:FI] Last trade:24.66 Trade time:4:03PM EDT Value change:▲0.21 (0.86%)
NYSE:IBKC

IberiaBank Corp

Company ID [NYSE:IBKC] Last trade:66.66 Trade time:3:59PM EDT Value change:▲0.24 (0.36%)
NYSE:LHCG

LHC Group

Company ID [NYSE:LHCG] Last trade:21.10 Trade time:3:59PM EDT Value change:▼0.27 (-1.29%)
NYSE:MSL

MidSouth Bancorp

Company ID [NYSE:MSL] Last trade:16.43 Trade time:4:02PM EDT Value change:▲0.18 (1.11%)
NYSE:PQ

Petroquest Energy

Company ID [NYSE:PQ] Last trade:5.44 Trade time:4:01PM EDT Value change:▼0.06 (-1.09%)
NYSE:PHII

PHI Inc.

Company ID [NYSE:PHII] Last trade:41.90 Trade time:12:48PM EDT Value change:▲0.81 (1.97%)
NYSE:SPN

Superior Energy

Company ID [NYSE:SPN] Last trade:31.63 Trade time:4:04PM EDT Value change:▲0.06 (0.19%)
NYSE:SGY

Stone Energy

Company ID [NYSE:SGY] Last trade:45.60 Trade time:4:06PM EDT Value change:▲0.62 (1.38%)
NYSE:TSH

Teche Holding

Company ID [NYSE:TSH] Last trade:76.82 Trade time:4:00PM EDT Value change:▼0.12 (-0.16%)
NYSE:FB

Facebook Inc.

Company ID [NYSE:FB] Last trade:59.72 Trade time:4:00PM EDT Value change:▲0.63 (1.07%)
NYSE:TWTR

Twitter Inc.

Company ID [NYSE:TWTR] Last trade:44.42 Trade time:4:00PM EDT Value change:▼1.10 (-2.42%)
NYSE:GCI

Gannett

Company ID [NYSE:GCI] Last trade:26.64 Trade time:4:02PM EDT Value change:▲0.69 (2.66%)
Advertisement

Economic Indicators

  • Real Estate Data
    Real Estate
     
    Rentals
     
    Commercial
     
     
  • Energy Data
    Oil
     
    Gas
     
     
  • Taxable Sales
    Register
     
  • Unemployment Rate
    Employment
     
 

Read the Flipping Paper!

Click Here for the Entire Print Version of
ABiz
 
Advertisement
Advertisement