Calypso Wireless (fka CLYW)

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FCC in uncharted terrain on AT&T-T-Mobile


Faced with an unprecedented turn of events, the Federal Communications Commission must figure out how to handle the AT&T/T-Mobile deal now that the companies have asked to withdraw their applications from the agency.

AT&T and T-Mobile owner Deutsche Telekom asked the FCC on Wednesday night to dismiss their merger applications without prejudice, which means the companies would be free to refile an amended application at any time. The companies made clear that they plan to continue to fight to win approval from the Justice Department, either at trial or through a settlement.

FCC officials have three options:

• They can allow AT&T and Deutsche Telekom to withdraw the applications without prejudice, meaning the companies could refile at any time.

• They can allow the proceeding to end with prejudice. In that case, the companies would not be able to resubmit their applications later.

• They can go forward with its process to send the case to an administrative law judge and deny the companies’ request.

The FCC has never faced this situation in a merger proceeding. The last time the FCC chose to send a merger proceeding to an administrative hearing was in 2002 when EchoStar and DirecTV tried to merge. The companies ended up dropping the deal entirely.

The request to withdraw the merger application from the FCC came a day after Chairman Julius Genachowski asked the three other commissioners to vote to designate the mega-deal to an administrative hearing, a rare move on the FCC’s part to try to block the deal. An administrative hearing would draw out the review process for another year or more.

"The Commission today received a request from AT&T and Deutsche Telekom to withdraw their applications regarding AT&T's acquisition of T-Mobile,” said an FCC spokeswoman. “The Commission will consider that request."

The chairman’s office has circulated the hearing designation order to the other commissioners. A vote was expected in the next several days.

Read more: http://www.politico.com/news/stories/1111/69094.html#ixzz1ek5S36gu