AT&T’s Purchase of T-Mobile Questioned on Prices by FCC Official

AT&T’s proposed $39 billion acquisition of Deutsche Telekom’s T-Mobile USA raises questions about whether the deal would lead to consumer price increases, the Federal Communications Commission’s top economist said.

Chief FCC economist Jonathan Baker said that the agency should determine whether the deal would leave wireless customers without viable alternatives. These concerns should be weighed against the possibility of technological breakthroughs and whether cost savings would be passed on to consumers. “It’s just a signal that the FCC is going to be examining these issues very carefully,” said Robert Lande, a University of Baltimore law professor who attended Baker’s speech and confirmed its content. He said Baker’s concerns are the basis of “a tough standard for approving a merger.”