U.S regulator raises concerns over Verizon’s spectrum purchase (USA)
The U.S regulators have raised concerns over Verizon Wireless’s $3.6 billion plan to buy airwaves from cable providers claiming that the purchase may harm competition in the wireless market, according to a report by BN.
As per the report, Steven K. Berry, chief executive officer of the Rural Cellular Association, said that the U.S. Federal Communications Commission and Justice Department are examining whether the acquisition would make it harder for Verizon’s rivals to expand wireless networks.
Both the FCC and the Justice Department’s antitrust division must approve the airwaves agreement. Regulators say they are trying to make sure the market remains competitive to preserve consumer choice and prevent a monopoly that could lead to higher prices.
The report reveals that Verizon has said consumers will benefit from its purchase of spectrum because the company will be able to provide improved wireless service. Verizon expects the purchase to be approved by the FCC and Justice Department by mid-summer.
Justice Department delays trial for AT&T and T-Mobile merger (USA)
U.S. telecom giant AT&T, along with T-Mobile, has reportedly approached the Justice Department to delay the trial for their US$ 39 billion merger, which was initially scheduled for February 13. According to reports, AT&T has said that they are evaluating other options for the merger so as to achieve the required regulatory approvals from the government.
As per sources, U.S. District judge Ellen Segal Huvelle, has approved the request to delay the proceedings and has given AT&T until January 12 to register its report with the court regarding its future plans with respect to T-Mobile. Industry analysts believe that the extension gives AT&T the chance to modify its proposal for the merger or pay T-Mobile the breakup fee and move on, as the judge may have moved to dismiss the case.
Further, sources claim that this may be AT&T’s last chance to convince the government authorities for any deal with T-Mobile, as the case is not expected to be carried out over a long period of time.
AT&T and T-Mobile deal likely to fail says MetroPCS (USA)
American mobile phone service provider MetroPCS Communications has reportedly said that the AT&T and T-Mobile US$ 39 billion merger is not likely to succeed. According to reports, MetroPCS was among the operators approached by AT&T for a possible sale of T-Mobile’s spectrum and customers in an attempt to gain regulatory approval for the deal.
As per sources, J. Braxton Carter, CFO, MetroPCS has said that there is less chance of the government giving approval for this merger and that the operators should start working on another alternative. AT&T is currently working towards reaching an agreement with the Justice Department for the deal which will otherwise go to trial in February next year. The Justice Department had opposed the merger saying that it would lead to a significant decrease in competition in the wireless market.
AT&T plans to reduce T-Mobile’s subscriber base by 50 percent (USA)
AT&T, the second largest wireless operator in the U.S. may reportedly be planning to lessen T-Mobile’s subscriber base by as much as 50 percent in an attempt to successfully close the US$ 39 billion merger as well as gain control of the assets including wireless spectrum.
According to reports, with this move, AT&T hopes to address the concerns raised by the Justice Department regarding the significant decrease in competition in the wireless market, should this merger take place. As reported earlier by Wireless Federation, the operator was planning to divest as much as 40 percent of T-Mobile’s assets in a bid to win approval for the deal.
As per sources, industry analysts believe that for AT&T, it is of prime importance to acquire T-Mobile’s spectrum and licences to airwaves that will increase the capacity for wireless traffic. Further, it has also been reported that the deal will still be beneficial to AT&T even if it needs to give up half of T-Mobile’s subscribers.
Reports reveal that the operator hopes to reach an agreement with the Justice Department regarding this merger, post which a trial will be held for the same in February next year.
AT&T plans bigger asset sale to save T-Mobile merger (USA)
AT&T is reportedly planning to divest a larger section of its assets in an attempt to save the $ 39 billion merger with T-Mobile. According to reports, with this asset sale AT&T aims to address the concerns raised by the Justice Department regarding lesser competition in the wireless market.
As per sources, the size of the asset sale could be as much as 40 percent of T-Mobile’s assets. However, according to industry reports, analysts believe that the asset sale may be tough for AT&T as the number of buyers for such a sale might be small.
According to reports, as per the agreement, AT&T would be liable to pay less than the deal’s original $39 billion value if regulators demand asset sales that surpass $7.8 billion. Further, sources claim that in the event that the deal does not take place, there is no way that AT&T would get out of paying Deutsche Telekom the $ 4 billion breakup fee.
AT&T to record a cost of US$ 4 billion in the 4Q if T-Mobile merger fails (USA)
US mobile operators AT&T and T-Mobile have reportedly withdrawn their petition from the Federal Communications Commission (FCC) in an attempt to first win approval for the clearance of the deal from the Justice Department. Further, according to reports AT&T will record a charge of US$ 4 billion in the fourth quarter as pretax accounting costs to be paid to Deutsche Telekom as breakup fees in the event that the merger is not permitted to go through.
Sources claim that this move reveals that this move is AT&T’s way of taking charge for the cost in the likelihood of the merger failing. As per sources, AT&T has said that the $4 billion accounting charge includes $3 billion in cash and $1 billion in book value of wireless spectrum.
Company reports suggest that AT&T has said that both the operators are continuing to pursue the sale of Deutsche Telekom’s U.S. wireless assets to AT&T and are taking this step to facilitate the consideration of all options at the FCC and to focus their continuing efforts on obtaining antitrust clearance for the transaction from the Department of Justice.
South Africa to holdup SIM Card Registration Deadline
South Africa is planning to extend the deadline for registering SIM card ownership by six months to allow more time for the mobile networks to collect their subscriber details. The deadline was due to expire at the end of this year, but is expected to now run until next June.
The Regulation of Interception of Communications and Provision of Communication-Related Information Act (RICA) legislation, amongst other things, required that SIM cards be registered with their users.
A Rica Amendment Bill is being rushed through Parliament to extend the deadline by six months.
The bulk of the RICA legislation came into effect back in 2005, but the clauses requiring SIM card registration were delayed until the necessary facilities could be put in place.
According to Justice Department spokesman Tlali Tlali, Parliament will seek to rush the bill through before the Parliamentary session ends in two weeks time.
Microsoft in talks to Acquire Adobe to unite against Apple
If rumors are to be believed, Microsoft CEO Steve Ballmer and Adobe CEO Shantanu Narayen were in a meeting to discuss over Apple and its control of the mobile phone market and how the two companies could collaborate in the battle against Apple. A possible acquisition of Adobe by Microsoft was among the options.
Formally, Adobe and Microsoft have been opponents with challenging software and the companies became really aggressive in 2007 when Microsoft began promoting Silverlight, its software plug-in for the Web that directly competes with Adobe Flash.
According to sources, the two companies had talked about the obstruction that Apple’s chief executive, Steven P. Jobs, had placed on Adobe’s Flash software for its hand-held devices and whether a partnership by Adobe and Microsoft could fend off Apple, which continues to grow at juggernaut speeds. Microsoft had courted Adobe several years ago. But the deal never moved past informal talks as Microsoft feared that the Justice Department would most likely block the acquisition on antitrust grounds.
The source noted that Microsoft was the dominant force in technology, Google and Apple were not the giants they are today.
