Facebook, MS, more back AT&T and T-Mobile merger

Everyday names like Microsoft, Facebook, RIM and nine other venture capital firms filed letters with the FCC supporting AT&T’s proposed buyout of rival carrier T-Mobile, the New York Times reported this week. This may help AT&T’s case, which argues that the deal would help extend its 4G data network in the US and therefore meet growing demand for wireless services. The deal is worth nearly $39 billion and would effectively make AT&T the country’s largest cellphone provider.

In its letter to the FCC, Microsoft wrote that many policy-related efforts will not address the near-term broadband needs, adding the governing body needs to seriously weigh the benefits of the merger and approve it.

AT&T faces an uphill battle otherwise, however, as the third largest carrier in the US, Sprint, believes that if the deal goes through, a duopoly will ensue, leaving customers with higher prices and reduced service. More recently, Leap mirrored those sentiments.

For the most part, Sprint has consumer groups in its corner, while AT&T has unions and other large companies on its side.

The process of figuring out if the deal harms competition and will be approved by the FCC and the Justice Department may take about a year. The deadline for submitting arguments in favor of the deal is this Friday, while the cutoff for arguments against it was last week.

Some of the other companies that sent letters backing the takeover include Yahoo, Oracle and venture capital firms like Kleiner Perkins Caufield & Byers and Sequoia Partners.

The merger would allow AT&T to expand its 4G network to cover 97 percent of the country and 55 million more residents.

By Electronista Staff