What Will AT&T Deal Mean for Sprint?

Lora Bentley

Federal Communications Commission Chairman Julius Genachowski opted not to comment after AT&T announced its intent to purchase T-Mobile for $39 billion. As such, there's been no official comment from the regulator. But that doesn't mean other FCC officials aren't talking about the deal.

 

Speaking on condition of anonymity, one of them told The Wall Street Journal:

There's no way the chairman's office rubber-stamps this transaction. It will be a steep climb to say the least.

Some analysts have said the acquisition will most likely be approved in the end, but not without restrictions. For instance, AT&T may have to divest some of its broadband spectrum.

 

Others, however, have indicated that Sprint and AT&T may both get part of T-Mobile before the whole thing is over. eWEEK reports analysts at Citadel Securities suggest that AT&T will likely be content to acquire however much of T-Mobile the regulators will allow and to divest as much as it needs to. The divested portions, then, could be picked up by Sprint, which reportedly was interested in T-Mobile.

 

For its part, Sprint plans to take its problems with the deal to Congress, according to The Huffington Post. The House Judiciary Committee has indicated it will hear testimony on the merger, and though the article isn't specific, it makes sense that Sprint would air its concerns there.



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