FCC wants hearing on AT&T, T-Mobile takeover

The US Federal Communications Commission (FCC) added its influential voice on Tuesday to those opposing AT&T's proposed $39 billion takeover of T-Mobile, the US unit of Deutsche Telekom. FCC chairman Julius Genachowski has asked the other four commissioners on the body for AT&T's acquisition of T-Mobile to be subject to a hearing before an administrative law judge, FCC officials said. AT&T would have to prove at such a hearing that the takeover, which is already being opposed by the Department of Justice, would be in the public interest. "The record clearly shows that -- in no uncertain terms -- this merger would result in a massive loss of US jobs and investment," a senior FCC official told reporters. The Justice Department filed a lawsuit to block the deal on August 31, saying it would harm competition. The case is scheduled to go to trial in Washington on February 13. The FCC-proposed hearing would only go ahead if the suit fails. Larry Solomon, AT&T's senior vice president of corporate communications, said the FCC's stance was "disappointing" and the company was "reviewing all options." "It is yet another example of a government agency acting to prevent billions in new investment and the creation of many thousands of new jobs at a time when the US economy desperately needs both," Solomon said. AT&T, T-Mobile, Sprint Nextel and Verizon Wireless provide more than 90 percent of the mobile wireless connections in the United States. Verizon currently holds a 31 percent share of the US wireless subscriber market followed by AT&T with 27 percent, Sprint Nextel with 14 percent and T-Mobile with nine percent.