Image via WikipediaThe federal telecommunications regulatory authority, FCC, has ordered AT&T Inc. to provide detailed information regarding its plans and effect of those plans of merger with T-Mobile USA. It was specifically mentioned to cover the verdicts of the effect this merger on the spectrum shortages, coverage overlaps and its plans to close any service in the future. The decision of AT&T acquiring T-Mobile USA from Deutsche Telekom AG in exchange for a $39 billion has been highly criticized and remains an extremely controversial one, since numerous sources claim that this merger will reduce the number of wireless carriers in the market and result in monopoly.The Federal Communications Commission posted a note on its website on this Friday, requesting both the companies participating in the merger to provide all their detailed plans and analyses it has kept for the merged company. AT&T is the second largest wireless carrier in U.S., and has cited spectrum shortages as the main motive behind its decision to buy T-Mobile USA, which is the fourth largest mobile provider of U.S. If this merger deal is approved and implied, it will make AT&T the number one leader of the U.S. market, overpowering the current leader Verizon Wireless, a joint venture of Verizon Communications and Vodafone Group Plc.
It is compulsory to seek an approval from FCC before the merger is put into action. FCC has asked for precise information regarding the under-used capacity, and any agreed future plans of both companies. Moreover, inquiry is made about the subscribers of both companies, whether they will have to change to the new company and will they face any raised prices or changes in services and quality or not. The agency also requested the list of areas where AT&T will no longer keep roaming agreements.
FCC stated that it expects complete disclosure on behalf of AT&T and T-Mobile USA as it expects them to provide detailed concrete plans it has after the merger, especially regarding the prices or change in other terms for providing "backhaul." Along with all these inquiries, FCC also asked for the result of the merger, whether it will lead to any coverage overlaps between AT&T and T-Mobile USA's network, or the areas where the cell sites, or other facilities, might have to be consolidated and/or removed.
Even after gaining the approval of FCC, both the companies are still bound to require an approval of Justice Department before it proceeds the deal.
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