FCC Wants AT&T to Prove Merger Job Claims

Federal regulators want more information on AT&T's claims that its merger can create more U.S. jobs, as the company continues to push the acquisition through the daunting regulatory process.

AT&T says the proposed $39 billion transaction would bring 5,000 T-Mobile call center jobs back to the U.S. from overseas, but the Federal Communications Commission wants the cellular provider to prove those claims, saying AT&T hasn't yet given enough information about its plans to create and maintain jobs.

"Our review of the information currently in our record suggests that AT&T's response on this issue remain incomplete," said Rick Kaplan, chief of the FCC's wireless communications bureau, in a letter to AT&T.

Kaplan also wants AT&T's data about the company's current workforce, as well as projections about the workforce after the merger, which would make AT&T the nation's largest cellphone carrier if approved.

U.S. regulators are also concerned that the acquisition, like many other such arrangements, may actually eliminate many U.S. jobs. AT&T says its plans to return the T-Mobile call center jobs, plus retaining current AT&T jobs and adding more positions, claiming the merger will be good for the U.S. employment situation.

AT&T, in response to Kaplan's letter, said it has made "significant job commitments," including job offer guarantees to T-Mobile employees and promises to keep the two companies' U.S. call center employees, instead of sending the jobs overseas.

Overall, AT&T claims the merger would create or maintain more than 96,000 U.S. jobs, a claim that could translate to political support for the merger, given the current unemployment situation in the U.S. Legislators from several states, as well as regulatory boards, have already thrown their support behind AT&T's plans, saying the merger is important to boost jobs as well as help their states' economies through infrastructure changes.

Other states, though, oppose the measure, fearing the matter will eliminate jobs.

The jobs question is just one concern AT&T must address as the merger plans go forward. The company also faces legal action from the Department of Justice and Sprint, which both have filed suits hoping to stop the merger.

Sprint, which would be in a distant fourth place if the merger goes through, claims AT&T's plans would stifle competition, while the DoJ says the deal will mean higher wireless prices for U.S. consumers by eliminating lower-priced T-Mobile plans.

AT&T is under pressure to settle the DoJ case, as the FCC rarely approves mergers opposed by the DoJ. A settlement would also allow the government and the Dallas, Texas-based wireless carrier to avoid long and costly litigation.

If AT&T can't alleviate the federal regulators concerns, its merger plans -- which for a long time seemed set in stone -- may be in jeopardy.