Although AT&T Inc.’s acquisition of T-Mobile USA Inc. will be scrutinized by federal regulators, the deal ultimately could be approved, according to a new report from Medley Global Advisors L.L.C., especially as the proposed merger likely will happen during the 2012 election cycle.
“We believe the merger of AT&T and T-Mobile, both of which utilize GSM-based technology, should be assessed in a context broader than anti-trust and public interest contours of the transaction itself. No government review of a major corporate merger takes place in a vacuum, and this one will be no exception,” wrote analyst Jeffrey Silva, noting the Communications Workers of America union has already given its blessing to the merger.
“Policymakers will have to analyze AT&T/T-Mobile on a granular, market-by-market basis, but also take account in the transaction’s potential impact on consumers and the industry landscape overall,” Silva wrote.
A map from American Roamer that shows overlap between the two companies. The purple areas represent the overlapping properties.
See where AT&T, T-Mobile have overlapping properties: Analyst says regulators should assess at market-by-market level
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