FCC begins review of AT&T's T-Mobile deal

FCC begins review of AT&T's T-Mobile deal
The Federal Communications Commission has formally started the process for reviewing the proposed $39 billion merger between AT&T and T-Mobile USA that was announced last month.
The FCC has posted its public notice that establishes procedural rules for the review process and will allow the public to weigh in on the proposed merger. AT&T and T-Mobile will file their formal applications by the end of the month as the FCC considers transferring wireless licenses.

The agency is still not discussing specifics of the review process, but earlier today it held a press conference in which it explained broadly how the agency will evaluate the deal. Specifically, the FCC will do two things. First it has to determine if the deal will meet specific requirements in the Communications Act and FCC rules. And second it will determine if the merger is in the public interest.

The agency will work in conjunction with the Department of Justice, which will be evaluating the merger to ensure it doesn't violate antitrust laws.

For the FCC its "public interest" evaluation will include things such as how the merger will affect competition. This is broader than the standard antitrust review and will consider whether the deal will encourage the deployment of new services.

The FCC will use a test called the Herfindahl-Hirschman Index (HHI) to measure concentration in a particular market. The commission will also evaluate spectrum coverage, and it will look at how much spectrum is available in certain markets for mobile services. It will evaluate what percentage of that spectrum is held by AT&T and T-Mobile.