After losing round 1, AT&T gears up for next fight to buy T-Mobile

Few corporations know their way around Washington — and spend as much money lobbying for their causes — as the nation’s original phone monopoly, AT&T.

So it was a surprising setback for AT&T and its hard-charging top political operative, James W. Cicconi, when the Justice Department sued to block the company’s $39 billion bid for T-Mobile. Analysts say AT&T’s mistake was to focus on political arguments — that the deal would create jobs and bring wireless Internet access to more Americas. Justice officials brushed aside those claims, ultimately concluding that the merger reduced competition and violated antitrust laws. But the deal is hardly dead for AT&T as the court challenge gets underway Sept 21, the analysts say.

The company spent $11 million in the first six months of the year on lobbying, more than any individual company except for General Electric. It employs 99 lobbyists, including former Republican senator Trent Lott of Mississippi and former Republican congressman Billy Tauzin of Louisiana, according to data by the Center for Responsive Politics. Cicconi’s vast operations have also revved up a fresh campaign to win support for the deal.