AT&T, Opponents to Face Off on the Hill

AT&T's controversial $39 billion takeover bid for T-Mobile USA enters the political arena this week as the phone giant faces its first congressional hearing and various sides in the telecommunications battle ramp up their lobbying efforts to win over government officials.

Randall Stephenson, AT&T's president and chief executive, is expected to receive a grilling May 11 on Capitol Hill as he defends the deal against opponents who claim it will sharply reduce competition in the mobile-phone sector, and stifle innovation, if the nation's second- and fourth-largest wireless carriers are allowed to combine. Also testifying at the Senate Judiciary Committee hearing: T-Mobile USA's chief executive, Philipp Humm; Sprint Nextel's chief executive, Daniel Hesse; Cellular South Inc. chief Victor Meena; and Larry Cohen, president of the Communications Workers of America. The acquisition requires approval by the Federal Communications Commission and Justice Department, but Congress can shape the political debate around the deal. One company that won't be at the hearing is AT&T's main competitor, Verizon Communications Inc., the majority owner of Verizon Wireless, the nation's largest wireless carrier by revenue. The company has avoided taking a position on the deal, but says it is concerned the government could use it to more heavily regulate the mobile-phone sector. Sprint, the third-largest U.S. wireless operator, has taken a lead in opposing the deal because Sprint could be the biggest loser if it goes through.