AT&T Faces Long Road to Save Merger, Blasts FCC Report

AT&T is struggling to save its merger with T-Mobile, after blasting a Federal Communications Commission's report criticizing the deal.

Earlier this week, the FCC released a detailed report of its findings about the potential purchase after AT&T withdrew its application for approval from the agency. The report said the completion the $39 billion merger would harm competition and "result in a net loss of direct jobs."

AT&T's claims about the merger's potential effects directly oppose the FCC's findings. However, the agency's report may irreparably damage AT&T's chances of completing a deal with T-Mobile, and the carrier has fired back.

"The report cherry-picks facts to support its views, and ignores facts that don't," said AT&T's chief lobbyist Jim Cicconi. "Where facts were lacking, the report speculates, with no basis, and then treats its own speculations as if they were fact."

AT&T does not think the analysis of its proposal with T-Mobile has been fair or objective, and the carrier has a long road ahead if it has any chance of saving the deal. In order for AT&T to bring its deal back from the brink, it will have to complete a complicated divesture sale of 40 percent of T-Mobile's assets, settle its lawsuit with the Department of Justice, and then resubmit an application for approval to the FCC, a daunting set of tasks.

Regardless of AT&T's complaints over the FCC's report, the carrier must ultimately yield to the agency's findings and appears to be mulling alternative plans if the merger does not go through. The company plans to report a $4 billion loss to cover the deal's break-up fees, and has reportedly begun exploring alternative solutions in its quest to expand its allocation of spectrum.

AT&T and T-Mobile are in early discussions to form a joint venture that would combine their assets if the merger fails, one that would avoid antitrust complaints by letting T-Mobile keep its customers.

The FCC's report may spell the end of the merger as AT&T originally planned it, but the company may find a way to still reap some of its benefits.