With its T-Mobile merger stalling and possibly headed for failure, AT&T continued its efforts to bolster its 4G network and compete with the nation's leading 4G provider, Verizon, by acquiring Qualcomm's spectrum.
San Diego mergers and acquisitions lawyers note that the FCC has set its own deadline of 180 days to decide whether or not it will approve the acquisition. Qualcomm's spectrum is currently inactive, since the communications provider ended its MediaFlo television service, which had previously used the spectrum for broadcasting.
The spectrum could be very valuable to AT&T as it tries to expand its 4G LTE coverage across the United States. Although Verizon has already achieved this broad service, AT&T only offers 4G service in select cities and areas and is well behind Verizon in transitioning to this network service.
The Qualcomm deal could help ease the loss of a $39 billion merger with T-Mobile, but the Department of Justice has delayed a decision on that while reviewing the particulars of the merger and determining whether such a merger would create an unfair market advantage.
Although the Qualcomm deal has support by most, and maybe all, FCC commissioners, some opponents to approving the deal are contesting that FCC support for the Qualcomm deal is a by-product of viewing the Qualcomm spectrum acquisition favorably over the T-Mobile merger. These opponents argue that the T-Mobile merger proposal should be ruled on with finality before the Qualcomm acquisition is reviewed.
Source: Forbes "AT&T to Buy Qualcomm Spectrum as T-Mobile Merger Flails" Dec. 13, 2011
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