DISH NETWORK MAY BE T-MOBILE'S BACK UP DATE IF AT&T STIFFS IT

Dish Network had reportedly been considered a potential candidate to receive divested T-Mobile assets from AT&T if it couldn't secure initial approval of its acquisition from the government. Dish, however, has publicly opposed the acquisition -- and now it's clear that there were some ulterior motives in wanting to see the merger fall through, because Bloomberg reported this morning that the satellite provider wants to merge its spectrum assets with T-Mobile if things don't go so rosy in the acquisition.

According to CEO Joseph Clayton "We want to... create a national wireless network, video, voice and data. We've got expertise in satellite TV, and we will in satellite broadband. The voice part, we'll need some help with.We want to... create a national wireless network, video, voice and data. We've got expertise in satellite TV, and we will in satellite broadband. The voice part, we'll need some help with."

A partnership with T-Mobile would ideally help both companies: it would help Dish get one step closer to its goal of a wireless network that bundles smartphones, tablets and satellite under the same umbrella, and would cast a bright light on T-Mobile's questionable future.

AT&T WITHDRAWS T-MOBILE MERGER APPLICATION FROM FCC

The Federal Communications Commission on Tuesday granted AT&T permission to withdraw its application to purchase T-Mobile USA for $39 billion. Two public policy groups, Public Knowledge and Media Access Project asked the FCC to publish its documents relating to the deal and to prevent AT&T from rescinding its application, although it appears it’s too late for that to happen. AT&T announced its intention to withdraw its application to purchase T-Mobile USA on November 24th when it explained that it was going to instead focus on a lawsuit brought against it by the Department of Justice. That case is expected to kick off in February. Should AT&T win, it is likely the wireless carrier will re-file its application with the FCC and begin its acquisition process all over again.

FCC RELEASES PUBLIC REPORT ON AT&T/T-MOBILE MERGER; NOT GOOD NEWS FOR AT&T

The Federal Communications Commission released a 109-page report on Tuesday evening that provides a great deal of insight into what the government agency thought of AT&T’s planned acquisition of T-Mobile USA. However, AT&T believes it is questionable exactly why the government agency decided to release the report since, hours before the report was released, AT&T successfully withdrew its merger application. The FCC said that the acquisition would give AT&T a “unilateral incentive” to increase its prices, which could have had an echo effect on the industry should Sprint and Verizon Wireless follow suit, The Wall Street Journal said. Read on for more.

AT&T promised the deal would create thousands of jobs and that it would bring back 5,000 call center jobs from overseas. The Communications Workers of America also argued the merger could create as much as 96,000 jobs for Americans. Even still, the FCC argued in the report that the acquisition would “result in a net loss of direct jobs.” As one might imagine, AT&T isn’t pleased with the FCC’s decision to release the report.

“The FCC has recognized that it is required by its own rules to dismiss our merger application,” AT&T senior executive vice president of external and legislative affairs Jim Cicconi said. “This makes all the more troubling their decision to nonetheless release a preliminary staff report on the merger. This report is not an order of the FCC and has never been voted on. It is simply a staff draft that raises questions of fact that were to be addressed in an administrative hearing, a hearing which will not now take place. It has no force or effect under law, which raises questions as to why the FCC would choose to release it. The draft report has also not been made available to AT&T prior to today, so we have had no opportunity to address or rebut its claims, which makes its release all the more improper.”

MOTOROLA MOBILITY SHAREHOLDERS OVERWHELMING APPROVE GOOGLE ACQUISITION

Motorola Mobility on Thursday announced that stockholders voted to approve Google’s proposed $12.5 billion merger. At the company’s special stockholder meeting on Thursday, roughly 99% of Motorola shares voting cast their vote in favor of the acquisition, which amounts to $40 per share in cash for complete ownership of Motorola Mobility Holdings, Inc. ”We are pleased and gratified by the strong support we have received from our stockholders, with more than 99 percent of the voting shares voting in support of the transaction,” Motorola Mobility CEO Sanjay Jha said in a statement. “We look forward to working with Google to realize the significant value this combination will bring to our stockholders and all the new opportunities it will provide our dedicated employees, customers, and partners.”

First announced back in August, Google intends to acquire Motorola Mobility and run it as a separate entity in terms of operations. As Google CEO Larry Page explained, however, patents are also a big part of the deal. Google intends to use the tens of thousands of patents it will control as a result of the merger as a new line of defense in a series of patent battles between its various Android partners and aggressively litigious companies like Apple and Microsoft.

AT&T/T-MOBILE DEAL WILL CLOSE LATER THAN EXPECTED

AT&T has pushed back the date it expects to close the books on its planned merger with T-Mobile and spectrum purchase from Qualcomm, The Wall Street Journal reported on Friday. The carrier had originally planned to close both acquisitions by March of 2012, although it now expects the required approvals to take as much as three months longer to gain. The carrier now says the deal should be approved by the end of the first half next year. AT&T recently ran into speed bumps with both deals. In August the Federal Communications Commission announced that it would review both AT&T’s spectrum purchase from Qualcomm and its merger with T-Mobile USA at the same time. Later that month, the U.S. government sued AT&T in an effort to block the T-Mobile acquisition. AT&T has argued that the T-Mobile purchase will provide jobs and improve wireless service for Americans. It also responded to the FCC lawsuit, saying it will “vigorously contest [the] matter in court.”

FCC SAYS AT&T HAS FAILED TO SHOW HOW T-MOBILE MERGER WILL CREATE JOBS

Rick Kaplan, chief of the Federal Communication Commission’s Wireless Telecommunications Bureau, sent a letter to AT&T on Thursday asking the carrier to clarify just how the proposed merger with T-Mobile USA will add jobs in the United States. “Our review of the information currently in our record suggests that AT&T’s responses on this issue remain incomplete,” Kaplan said. The FCC is giving AT&T until October 31st to address fully “all plans, analyses and reports discussing the creation or loss of jobs” if the merger is approved. AT&T must also disclose how many T-Mobile USA jobs will be eliminated and show how the merger will affect employment inside and outside of the United States during the next five years. AT&T CEO Randall L. Stephenson argued earlier this year that the proposed merger would be a “net job grower” in the United States. On August 31st, AT&T promised to bring 5,000 jobs back to the United States if the merger is approved, which was the same day the U.S. government filed a lawsuit in opposition of the deal.

AOL CEO PITCHES MERGER WITH YAHOO TO INVESTORS

According to Reuters AOL Inc CEO Tim Armstrong has been meeting with top shareholders in the past couple of weeks to push the idea of a sale to Yahoo Inc that could wring up to $1.5 billion of cost savings, according to sources with knowledge of the discussions. "The focus in the meeting has gone from a year ago of being around the fundamentals to now being how could you carve this up, what are separate assets worth, are there ways to sell off the business to extract value from them," said a top 20 AOL shareholder who attended one of the meetings.

Armstrong said a merger between AOL and Yahoo could wring out $1 billion to $1.5 billion in savings from overlapping data centers and duplicate news sites, such as sports, entertainment and finance, according to another major shareholder who met with Armstrong.

He is pushing the notion that a combination with Yahoo would appease ad agencies looking for more efficient buys with a bigger audience, said the two shareholders.

They said they liked the idea of a merger with Yahoo but it remains to be seen if Armstrong can pull it off.

AT&T PROMISES TO BRING BACK 5,000 JOBS TO US IF GOVERNMENT APPROVES T-MOBILE MERGER

AT&T said on Wednesday that it promises to bring 5,000 of its outsourced call center jobs back to the United States if its proposed $39 billion acquisition of T-Mobile USA is approved by the FCC. AT&T also promised that it will not layoff any AT&T or T-Mobile call center employee who is employed at the time of the merger. In addition, AT&T will invest $8 billion in its U.S. infrastructure and the Economic Policy Institute has suggested that move could provide up to 96,000 new jobs. AT&T made its announcement hours before the United States Justice Department filed a lawsuit in an attempt to block the merger. “AT&T’s elimination of T-Mobile as an independent, low- priced rival would remove a significant competitive force from the market,” the Justice Department said. AT&T responded and said that “there was no indication” from the DOJ that a lawsuit was being contemplated. “We remain confident that this merger is in the best interest of consumers and our country, and the facts will prevail in court,” AT&T Senior Executive Vice President and General Counsel Wayne Watts said, noting that AT&T will continue to fight for the merger’s approval.

US GOVERNMENT FILES ANTI-TRUST SUIT AGAINST AT&T/T-MOBILE MERGER

The U.S. government sued to block AT&T Inc. (T)’s proposed $39 billion acquisition of T-Mobile USA Inc., saying the deal would “substantially lessen competition” in the wireless market. AT&T shares fell as much as 5 percent.

In the complaint filed today in federal court in Washington, the U.S. is seeking a declaration that Dallas-based AT&T’s takeover of T-Mobile, a unit of Deutsche Telekom AG (DTE), would violate U.S. antitrust law. The U.S. also asked for a court order blocking any arrangement implementing the deal. “AT&T’s elimination of T-Mobile as an independent, low- priced rival would remove a significant competitive force from the market,” the U.S. said in its filing.

Should regulators reject the deal, which would create the biggest U.S. wireless carrier, AT&T would have to pay Deutsche Telekom $3 billion in cash. It would also provide T-Mobile USA with wireless spectrum in some regions and reduced charges for calls into AT&T’s network, for a total package valued at as much as $7 billion, Deutsche Telekom said this month

LEAKED: AT&T LETTER DAMAGES AT&T CASE FOR T-MOBILE ACQUISITION

Yesterday a partially-redacted document briefly appeared on the FCC website --accidentally posted by a law firm working for AT&T on the $39 billion T-Mobile deal (somewhere there's a paralegal looking for work today). While AT&T engaged in damage control telling reporters that the document contained no new information a careful review of the doc shows that's simply not true. Data in the letter undermines AT&T's primary justification for the massive deal, while highlighting how AT&T is willing to pay a huge premium simply to reduce competition and keep T-Mobile out of Sprint's hands.

While AT&T is busy telling regulators the deal will increase network investment by $8 billion, out of the other side of their mouth AT&T has been telling investors the deal will reduce investment by $10 billion over 6 years. Based on historical averages T-Mobile would have invested $18 billion during that time frame, which means an overall reduction in investment.

For the first time the letter pegs the cost of bringing AT&T's LTE coverage from 80% to 97% at $3.8 billion -- quite a cost difference from the $39 billion price tag on the T-Mobile deal. The push for 97% coverage apparently came from AT&T marketing, who was well aware that leaving LTE investment at 80% would leave them at a competitive disadvantage to Verizon. Marketing likely didn't want a repeat of the Luke Wilson map fiasco of a few years back, when Verizon made AT&T look foolish for poor 3G coverage.

The letter also notes that AT&T's supposed decision to "not" build out LTE to 97% was cemented during the first week of January, yet public documents (pdf) indicate that at the same time AT&T was already considering buying T-Mobile, having proposed the deal to Deutsche Telekom on January 15. In the letter, AT&T tries to make it seem like the decision to hold off on that 17% LTE expansion was based on costs. Yet the fact the company was willing to shell out $39 billion one week later, combined with AT&T's track record with these kinds of tactics, suggests AT&T executives knew that 80-97% expansion promise would be a useful carrot on a stick for politicians.

The reality appears to be that AT&T is giving Deutsche Telekom $39 billion primarily to reduce market competition. That price tag eliminates T-Mobile entirely -- and makes Sprint (and by proxy new LTE partner LightSquared and current partner Clearwire) more susceptible to failure in the face of 80% AT&T/Verizon market domination.

Regardless of the motivation behind rejecting 97% LTE deployment, the letter proves AT&T's claim they need T-Mobile to improve LTE coverage from 80-97% simply isn't true. That's a huge problem for AT&T, since nearly every politician and non-profit that has voiced support for the merger did so based largely on this buildout promise. It's also a problem when it comes to the DOJ review, since proof that AT&T could complete their LTE build for far less than the cost of this deal means the deal doesn't meet the DOJ's standard for merger-specific benefits. [Broadband Reports]

FCC WIRELESS REPORT DOESN'T SAY A WHOLE LOT WITH A BUNCH OF DATA

Sometimes it’s not what you say but what you don’t say that matters, and in today’s release of its annual wireless competition report (PDF link), the silence of the Federal Communications Commission speaks volumes. The problem is, no one knows what that silence is saying.

The agency has decided not to say that the U.S. mobile industry is competitive, releasing a report that could possibly cause problems for the $39 billion merger between AT&T and T-Mobile. Last year, when the FCC released its report, analysts paid considerable attention to the fact that the FCC hadn’t declared the industry competitive, but had instead issued an in-depth report looking at the various layers of the mobile ecosystem, and expressed concern about some elements and less about others.

This was seen as a victory for those worried about the influence that operators had on the agency, but this year the pro-consumer lobbying groups are clearly disappointed, having hoped the FCC would come out strongly on the issue. This is a particularly sensitive topic for the current FCC, which has tried to appear consumer friendly while not upsetting incumbents too much. One can still hope that mobile broadband might help rectify the uncompetitive state of wireline broadband in the U.S., but given the difficulties faced by LightSquared and the proposed combination of the nation’s No. 2 and No. 4 mobile operators the FCC could wind up building a wireless duopoly.

But while the FCC didn’t come to a conclusion on competitiveness, it did provide a lot of data. For example, spectrum holdings are a huge issue for the merger, and a chart from the report shows how much of the 700 MHz spectrum both AT&T and Verizon currently have. However, the same chart also shows how complex analyzing spectrum holdings can be, because it’s not an apples to apples comparison. The latest report is incredibly aware of those same problems in comparing different facets of the mobile ecosystem, which may be why the FCC ultimately provided a ton of data that says essentially nothing.

US HOUSE OF REPRESENTATIVE LETTER TO FCC WRONG ON FACTS OF AT&T/T-MOBILE MERGER

According to press reports, more than 70 Democrats have signed a letter to the Federal Communications Commission and the Justice Department touting the alleged benefits of AT&T’s proposed takeover of T-Mobile.

While it does not endorse the merger, the letter claims the deal would bring the benefits of broadband to rural communities that would otherwise not have access. This is untrue: On June 10, AT&T reported to the FCC that, even without the merger, it plans to deploy next generation "4G service to 97 percent of the population by the end of 2012."

The letter also suggests AT&T's takeover will result in billions of dollars in additional investment and the creation of thousands of jobs. But AT&T has told Wall Street the merger will result in less investment and more layoffs.

Free Press Action Fund Research Director S. Derek Turner made the following statement:

“Members of Congress should be more careful about signing any letter that AT&T puts in front of them. This letter is riddled with misleading and factually inaccurate statements that contradict what the company is telling investors and regulators. It is simply wrong on the facts.

“This letter cites promises from AT&T to bring wireless broadband to 97 percent of the country, including areas where it claims Americans may not otherwise see the benefits of broadband. But the truth is that it won’t take a merger to get next-generation mobile broadband to rural and underserved communities. AT&T has already publicly committed to expanding its 4G coverage to the same 97 percent by 2012 without the merger, and Verizon has done the same.

“The letter is also dead wrong when it suggests that AT&T's takeover will result in billions of dollars in additional investment and the creation of thousands of jobs. AT&T has already told Wall Street that it expects to spend at least $10 billion less in capital investment over the coming years. This drop in investment will unquestionably lead to fewer jobs. And the only benefits tens of thousands of T-Mobile workers will see from this deal are unemployment benefits.

“If the members of Congress who signed this letter had taken the time to examine the public record, they would have seen right through AT&T's phony promises. We expect the Justice Department and FCC will be much more skeptical of AT&T's claims and conclude based on the evidence that this merger's only 'benefit' will be fattening AT&T’s bottom line at the expense of American workers and consumers.”

SPRINT FORMALLY ASKS FCC TO BLOCK AT&T/T-MOBILE MERGER

Sprint’s already been very vocal about its opposition to AT&T’s planned purchase of T-Mobile from Deutsche Telekom, but on Tuesday the carrier officially asked the Federal Communications Commission to step in and block the purchase. In its 377-page filing, Sprint argued that the acquisition would make AT&T the nation’s largest carrier with a total of 118 million subscribers and a 43% grip on the postpaid market.

The carrier added that Verizon and AT&T would earn 78% of all wireless revenues and the “Twin Bell” duopoly would have an 82% grasp of the postpaid market, making it difficult for other carriers such as Sprint to compete.

AT&T, meanwhile, has argued that the acquisition will create jobs, will not stifle competition, and will help deliver high-speed wireless broadband to 97% of U.S. residents.

CALIFORNIA PUBLIC UTILITIES COMMISSION INVESTIGATING AT&T/T-MOBILE MERGER

The Public Utilities Commission in California will investigate AT&T’s planned acquisition of T-Mobile, The Wall Street Journal reported on Friday. The Golden state is one of three states that Sprint has asked to investigate the deal, the other two are West Virginia and Louisiana. “We believe a thorough investigation will reveal the negative implications for pricing, choice, and innovation critical to California’s economy,” Sprint’s public affairs manager, John Taylor, said. “Sprint is pleased that the commission will open up a proceeding to investigate the proposed takeover of T-Mobile by AT&T.” AT&T originally filed its informal notice with California’s Public Utilities Commission on May 3rd, and Sprint protested the filing on May 19th when it asked for a review of the merger. The regulators will consider three options, one of which is a choice to notify AT&T that its purchase is not “pre-approved” after the standard 30-day time period after an application is submitted. Sprint has opposed the acquisition from day one, and its CEO Dan Hesse said the deal would “stifle innovation” in the U.S. wireless market.

RUMOR: CENTURYLINK TO BUY SPRINT IF AT&T/T-MOBILE MERGER APPROVED

In a Congressional appearance last week, Sprint CEO Dan Hesse explained just why his company objects to the proposed $39 billion AT&T and T-Mobile merger. Aside from his previously expressed grievances — that the merger would create a wireless duopoly and stifle competition — Hesse also noted another possible paradigm: the deal could lead to Sprint being bought or acquired as well. “The most likely buyer is CenturyLink, the biggest company in telecommunications without a wireless unit,” writes Bloomberg, quoting industry analysts.

Other potential Sprint buyers on the publication’s post-merger hit-list include Comcast Communications — a company that might be interested in bundling home internet, phone and cable services with wireless offerings. Most analysts agree that a Sprint purchase would come at least two full-quarters after the AT&T and T-Mobile deal has been finalized, although the idea of the Now Network being procured is still very speculative. Representatives from Sprint, CenturyLink, and Comcast all declined to comment on the report.

RUMOR: NOKIA IN TALKS TO SELL PHONE BUSINESS TO MICROSOFT

According to industry insider Eldar Murtazin, Nokia is set to begin discussing the possibility selling its cell phone business to Microsoft. According to the blogger, who has a proven track record of disseminating accurate intel, the negotiations will begin next week and the results will not immediately be made public.

If the two giants do work out a sale, however, it could close before the end of 2011. According to Murtazin, “both companies are in a big hurry.” The idea seems like a bit of a stretch, but some believed Nokia CEO Stephen Elop was brought on board for this very reason — an idea that seemed far fetched at the time.

And let’s not forget, Nokia was founded in the 1800s as a paper company and it shifted gears several times before building its first cell phone, so a change in direction would certainly be in line with the company’s heritage.

AT&T TO PAY T-MOBILE $6 BILLION IF MERGER FALLS THROUGH

AT&T will pay T-Mobile $3 billion in cash, a $1 billion roaming agreement, and $2 billion in spectrum if the Federal Communications Commission and the Department of Justice reject AT&T’s proposed $39 billion acquisition of T-Mobile. The agreement’s 15% breakup fee would shatter global records, Reuters said, noting that the 7.7% breakup cash agreement is already high.

On Wednesday, AT&T’s CEO Randall Stephenson met with the Senate Judiciary Committee to discuss the acquisition. AT&T’s CEO Randall Stephenson has argued that there’s already plenty of competition in the U.S. wireless market and that the deal will actually create jobs. Similarly, the Communications Workers of America backs the deal and believes it will be a “victory for broadband proponents. AT&T’s competition isn’t so sure.

Sprint’s CEO, Dan Hesse said the deal would “stifle innovation” and the carrier believes it would create a “vertically integrated duopoly.” Verizon has kept to itself, but did note that, if confirmed, the deal could be “an excuse for the government to insert itself into the marketplace.”

SPRINT ASKS GOVERNMENT TO OPPOSE AT&T/T-MOBILE MERGER

Sprint CEO Dan Hesse has already expressed his concerns about AT&T’s purchase of T-Mobile from Deutsche Telecom, but today Sprint officially announced its opposition to the deal in a press release. Sprint states that the transaction will create a carrier that’s roughly three times its size — in terms of revenue — and “reverse nearly three decades of actions by the U.S. government.”

Sprint noted that AT&T and Verizon Wireless would dominate the U.S. wireless postpaid market and be firmly in control of the availability and price of key inputs, such as backhaul, should the deal go through. “Sprint urges the United States government to block this anti-competitive acquisition,” writes Sprint’s senior vice president of government affairs, Vonya McCann “This transaction will harm consumers and harm competition at a time when this country can least afford it.”

If it’s any consolation to Sprint, one FCC official believes that the deal won’t be rubber stamped, and could be a “steep climb at least.”

FCC APPROVES COMCAST/NBC MERGER

Today the FCC voted to allow the merger between Comcast and NBC/Universal. The 4-1 vote allows Comcast to buy a controlling 51% of NBC/Universal from GE for $13.8 billion in cash and assets. The deal still requires DOJ approval, but that is expected later today.

The FCC is requiring Comcast to make NBC programming available to competitors including rival cable companies, satellite operators and new Internet video services that could pose a threat to Comcast's core cable business. Regulators want to ensure that emerging online video platforms being developed by companies such as Netflix Inc., Amazon.com Inc. and Apple Inc. can get the movies and shows they need to grow — and potentially offer a cheaper alternative to monthly cable subscriptions.

Taking over NBC will transform the company into a media powerhouse. NBC Universal owns the NBC and Telemundo broadcast networks; 26 local TV stations; popular cable channels including CNBC, Bravo and Oxygen; the Universal Pictures movie studio and theme parks; and a roughly 30 percent stake in Hulu.com, which distributes NBC and other broadcast programming online.

TIME WARNER, DISNEY AND NEWS CORP CHIME IN ON COMCAST/NBC MERGER

As Comcast, NBC and the FCC attempt to work out stipulations over Comcast's proposed 51 percent buyout of NBC Universal, a smattering of major media companies are paying close attention to the play-by-play. Naturally, the precedents that are set from this deal will affect future agreements of this caliber, and lobbyists for both Disney and News Corp. (as well as Time Warner CEO Jeff Bewkes) aren't standing over on the sidelines any longer. All three outfits have reportedly been "voicing their concerns this week with the FCC, worried that such conditions could undermine their own efforts to profit from the nascent online video industry."

We're told that the media mega-corps are worried that the rules -- if hammered down -- could interfere with ongoing negotiations with online video providers, and in turn, give them less leverage to monetize and control their content on the world wide web. In other words, if NBC Universal is forced to provide content fluidly to all ISPs (and not just Comcast), what's to say other content makers and internet providers wouldn't also be forced into similar deals, regardless of whether or not they're involved in takeover negotiations? Needless to say, we're nowhere near the end of this journey, and while the nuts and bolts are pretty dry to think about, the outcomes could have a serious impact on our future viewing habits.