Verizon Chief Says AT&T/T-Mobile Merger Likely, But Key U.S. Senator Says No

Verizon COO Lowell McAdam has concluded that AT&T’s purchase of T-Mobile will most likely receive governmental approval. As such, the combined company will become the largest wireless provider in the United States, a title Verizon currently enjoys. However, a key U.S. senator says otherwise and will oppose the deal, which still must get Senate approval. First announced in March, the AT&T-T-Mobile merger is valued at $39 billion and is waiting for approval, which is being opposed by Verizon and Sprint Nextel. However, McAdam, speaking at the Fortune Brainstorm Tech Conferences, believes the deal will go through, according to news first reported by Electronista. According to McAdam:

"The merger will probably go through. It's a merger AT&T probably had to do."

Says Electronista:

The AT&T and T-Mobile merger will catapult the combined company ahead of Verizon, which currently holds the top position in the US cellular market. Verizon's major concern from the merger may not be from any intensified competition from AT&T, but rather from possible regulatory fall out. The company is worried that the FCC may use the merger as an opportunity to increase its regulation of the industry and the Internet by enforcing net neutrality policies that it hopes will ensure competition and fairness.

However, the deal isn't sealed yet. Just today, Senator Herb Kohl, chairman of the Senate Subcommittee on Antitrust has voiced his opposition to the deal, according to The Consumerist, who states:

Senator Herb Kohl (D-WI), chairman of the Senate Subcommittee on Antitrust, called on the FCC and the Department of Justice to block the proposed merger of AT&T and T-Mobile, saying the deal would "likely cause substantial harm to competition and consumers, would be contrary to antitrust law and not in the public interest, and therefore should be blocked by your agencies."

What do you think? Should AT&T be able to purchase T-Mobile? Let us know by leaving your comments below.

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