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It seems to be a tough ride for AT&T Inc as it has been told that the Federal Communications Commission has lashed out at the proposed $39 billion acquisition of T-Mobile USA by the company. It has been made clear in the report released by the FCC that this business association would pave the way for AT&T to create monopoly in the market, thereby stimulating customers to pay higher prices.
Before the 109-page analysis by the FCC was made public, it has been known that the Justice Department had filed a lawsuit against the same deal. This report has made it clear that the company had vested interest in acquiring T-Mobile. This deal is told to leave only Omaha, Neb., with significant wireless competition, rest would be dominated by AT&T.
While the decision to make the report public has not gone down well with AT&T's, it has been told by AT&T's top Washington lawyer, Jim Cicconi, that this report has no value under the purview of law. However, the FCC has asserted that this report was released to ensure that there is nothing hidden in the deal and the reaction from the company has cleared that the company is certainly trying to shield their true intention behind the deal.
The FCC couldn’t find a single positive behind the deal improving wireless network quality and that’s what the deal is being facing such strong opposition. Even AT&T’s claim that they were in dire need of T-Mobile's spectrum to build out its next-generation wireless network across most of the U. S has been turned down by the FCC. While the AT&T is putting up its best defense to ensure that the deal goes through, the FCC stand has made it clear that road ahead is not that easy, and to let it go through, the company must have to introspect a lot.