NEW YORK/WASHINGTON, March 29 (Reuters) – AT&T Inc’s (T.N: Quote, Profile, Research, Stock Buzz) $39 billion bid to buy Deutsche Telekom AG’s (DTEGn.DE: Quote, Profile, Research, Stock Buzz) T-Mobile USA came under scrutiny from New York’s attorney general, who said he is looking into its possible anti-competitive impact.

Citing a potential “near duopoly” as a result of the proposed deal, Attorney General Eric Schneiderman said he wants to ensure the acquisition does not reduce access to low-cost cell phone options.

The deal announced last week would concentrate 80 percent of the U.S. wireless contract customers in two companies – AT&T/T-Mobile and Verizon Wireless, a venture of Verizon Communications (VZ.N: Quote, Profile, Research, Stock Buzz) and Vodafone Group Plc (VOD.L: Quote, Profile, Research, Stock Buzz).

“Cell phones are no longer a luxury for a few among us, but a basic necessity,” Schneiderman said in a statement. “The last thing New Yorkers need during these difficult economic times is to see cell phone prices rise.”

He said he will “closely scrutinize” AT&T’s argument about the benefits of the purchase and weigh that against anti-competitive risks.

An AT&T spokesman said the company looks forward to sharing information with the AG’s office and remains excited about the benefits of the deal, “including improved customer service and expanded high-speed LTE wireless coverage to additional residents.” LTE, or long-term evolution, is a new broadband technology.

T-Mobile could not immediately be reached for comment.

WASHINGTON (Reuters) – Sprint Nextel urged regulators to block AT&T Inc’s $39 billion bid to buy Deutsche Telekom AG’s T-Mobile USA, saying the merger would harm consumers.

“This transaction is fundamentally anti-competitive, and you can’t fix that with merger conditions,” Charles McKee, Sprint’s vice president of government affairs, federal and state regulatory, told Reuters in a phone interview on Monday.

Sprint, the No. 3 U.S. mobile carrier, already faces tough competition from industry leaders AT&T and Verizon Wireless, a venture of Verizon Communications and Vodafone Group Plc. Combined, AT&T and T-Mobile USA, the No. 4 U.S. operator, would leapfrog Verizon Wireless as the top carrier.

The deal would concentrate 80 percent of U.S. wireless contract customers in just two companies — AT&T/T-Mobile and Verizon Wireless.

No. 2 U.S. mobile carrier AT&T, often criticized for dropped calls and slow connection speeds, said the merger would spur innovation and economic growth by improving quality and expanding service to 95 percent of the U.S. population.

The U.S. Federal Communications Commission — which aims to extend mobile broadband to virtually all Americans — and Justice Department are expected to take at least a year to review the proposed merger, and impose significant conditions if they approve the deal.

“The U.S. wireless market is intensely competitive with five or more competitors in 18 of the top 20 markets,” AT&T said in a statement on Monday.

WASHINGTON (Reuters) – AT&T Inc’s $39 billion bid to buy Deutsche Telekom AG’s T-Mobile casts doubt on the U.S. government’s ability to swiftly deliver policy to meet the booming demand for wireless services.

Wireless companies have long lobbied for help to deal with what they see as a looming “spectrum crunch” as more consumers turn to mobile devices including Apple Inc’s iPhone to surf the Web.

AT&T — the No. 2 U.S. mobile carrier often criticized for dropped calls and slow connection speeds — is not waiting for government remedies intended to free up airwaves for mobile broadband to help it meet ever-growing demands for video and data.

But the move could slow legislation needed to free up spectrum for auction to wireless carriers, a potential thorn in the Federal Communications Commission’s agenda.

“The way things work in Congress, there’s competition for what issues get the lawmakers’ time and resources,” Medley Global Advisors analyst Jeffrey Silva said.

Top lawmakers have already signaled an interest in scrutinizing the large-scale transaction.

The proposed merger would boost AT&T’s spectrum holdings — the airwaves used for wireless communication — nearly 20 percent from 0.86 to 1.02 megahertz per million subscribers.

WASHINGTON, March 24 (Reuters) – AT&T Inc’s (T.N: Quote, Profile, Research, Stock Buzz) $39 billion bid to buy Deutsche Telekom AG’s (DTEGn.DE: Quote, Profile, Research, Stock Buzz) T-Mobile casts doubt on the U.S. government’s ability to swiftly deliver policy to meet the booming demand for wireless services.

Wireless companies have long lobbied for help to deal with what they see as a looming “spectrum crunch” as more consumers turn to mobile devices including Apple Inc’s (AAPL.O: Quote, Profile, Research, Stock Buzz) iPhone to surf the Web.

AT&T — the No. 2 U.S. mobile carrier often criticized for dropped calls and slow connection speeds — is not waiting for government remedies intended to free up airwaves for mobile broadband to help it meet ever-growing demands for video and data.

But the move could slow legislation needed to free up spectrum for auction to wireless carriers, a potential thorn in the Federal Communications Commission’s agenda.

“The way things work in Congress, there’s competition for what issues get the lawmakers’ time and resources,” Medley Global Advisors analyst Jeffrey Silva said.

Top lawmakers have already signaled an interest in scrutinizing the large-scale transaction.

The proposed merger would boost AT&T’s spectrum holdings – the airwaves used for wireless communication — nearly 20 percent from 0.86 to 1.02 megahertz per million subscribers.

WASHINGTON, March 22 (Reuters) – AT&T’s (T.N: Quote, Profile, Research, Stock Buzz) high-powered lobbying operation — on steroids even by Washington standards

– will be critical in persuading regulators to approve its $39 – will be critical in persuading regulators to approve its $39 billion bid to buy Deutsche Telekom AG’s (DTEGn.DE: Quote, Profile, Research, Stock Buzz) T-Mobile.

The deal will face criticism from lawmakers and scrutiny from U.S. regulators, who will likely demand major concessions to ensure open competition among mobile and Internet carriers.

Tough as this deal will be to get through regulators, AT&T commands a formidable armada of lobbyists, has deep roots in Washington, and connections in the White House — chief of staff William Daley used to lobby for SBC Communications, which became AT&T.

AT&T, decimated after the U.S. government in 1984 dismantled one of the world’s most powerful communications empires, intensified its Washington presence to restore “Ma Bell” to its former glory.

“The ink wasn’t dry on the consent decree and they started lobbying heavily,” said Catherine Sloan, a vice president at Computer and Communications Industry Association, which called AT&T’s latest deal a “lose-lose for consumers.”

A protracted battle between AT&T, left only with its long-distance service after the 1984 breakup, and the local bell companies ended when President Bill Clinton signed the Telecommunications Act of 1996.

WASHINGTON (Reuters) – AT&T’s (T.N: Quote, Profile, Research, Stock Buzz) high-powered lobbying operation — on steroids even by Washington standards — will be critical in persuading regulators to approve its $39 billion bid to buy Deutsche Telekom AG’s (DTEGn.DE: Quote, Profile, Research, Stock Buzz) T-Mobile.

The deal will face criticism from lawmakers and scrutiny from U.S. regulators, who will likely demand major concessions to ensure open competition among mobile and Internet carriers.

Tough as this deal will be to get through regulators, AT&T commands a formidable armada of lobbyists, has deep roots in Washington, and connections in the White House — chief of staff William Daley used to lobby for SBC Communications, which became AT&T.

AT&T, decimated after the U.S. government in 1984 dismantled one of the world’s most powerful communications empires, intensified its Washington presence to restore “Ma Bell” to its former glory.

“The ink wasn’t dry on the consent decree and they started lobbying heavily,” said Catherine Sloan, a vice president at Computer and Communications Industry Association, which called AT&T’s latest deal a “lose-lose for consumers.”

A protracted battle between AT&T, left only with its long-distance service after the 1984 breakup, and the local bell companies ended when President Bill Clinton signed the Telecommunications Act of 1996.

That bill combined with an eased regulatory environment during the Bush administration allowed the Bell system to almost completely rebuild itself.

WASHINGTON (Reuters) – AT&T Inc will likely be forced to sell major assets and pledge to expand service to poor areas to get approval from the U.S. government for its $39 billion deal to buy Deutsche Telekom AG’s T-Mobile USA.

Antitrust experts say the merger, which will create the largest U.S. wireless service provider, faces a tough review by competition and communications regulators that could take as long as 18 months, but that it will ultimately be approved.

The deal gives AT&T — the No. 2 U.S. mobile service often criticized for dropped calls and slow connection speeds — more capacity to meet ever-growing demands for videos and data from devices such as Apple’s iPhone.

It will have about 130 million customers and hold roughly 43 percent of the U.S. wireless market, a concentration that sparks major regulatory concerns. Both the Federal Communications Commission and the Justice Department could force the combined entity to give up precious assets, including chunks of U.S. airwaves, known as spectrum, experts said.

The FCC could go further than the DOJ, asking for AT&T to expand wireless service to poor and rural areas, and for service promises including more packages with data roaming.

“I would expect that DOJ would require divestitures of spectrum and possibly other assets … in a significant number of local markets,” said Beau Buffier, an antitrust expert with Shearman & Sterling LLP. He added, however, that that won’t materially affect the economics of the deal for the parties.

Sen. Amy Klobuchar, a Minnesota Democrat who has criticized wireless carriers for failing to serve rural areas, on Monday urged the government to “take a close, hard look” at the deal.

WASHINGTON (Reuters) – AT&T’s planned buy of Deutsche Telekom AG’s T-Mobile USA will face major demands from U.S. regulators, including extensive asset sales and promises to serve rural areas, but the $39 billion deal is expected to ultimately get a government nod.

The proposed deal, announced on Sunday, would create a new leader that will control roughly 43 percent of the U.S. wireless market.

That market concentration sparks major regulatory concerns. Both the Federal Communications Commission and the Justice Department could force the combined entity to give up precious assets, including chunks of the U.S. airwaves, known as spectrum.

The FCC could go further than the DOJ, asking for expansion of wireless service to rural areas and for service promises including more packages with data roaming.

But regulatory experts interviewed expected the deal to go forward, especially because AT&T agreed to pay an unusually high breakup fee of $3 billion and to give T-Mobile USA wireless airwaves if regulators reject it.

“I would expect that DOJ would require divestitures of spectrum and possibly other assets … in a significant number of local markets, but that won’t materially affect the compelling economics of the deal for the parties,” said Beau Buffier, an antitrust expert with Shearman & Sterling LLP.

AT&T shares were up 1.3 percent and Deutsche Telekom rose nearly 11.5 percent on Monday, and sent reverberations across the telecommunications industry.

WASHINGTON (Reuters) – Broadcast television still looks to be the winner after pay-TV outlets took their complaints about fees to carry broadcasters’ free-to-air content to the U.S. Federal Communications Commission.

Last week’s FCC proposals make some inroads to help consumers when these disputes threaten to cause blackouts of major sporting events and popular programs.

But industry experts say the rulemaking will not make a significant dent in broadcasters’ leverage during negotiations with cable and satellite television providers.

A proposal that consumers be notified when a retransmission agreement is expiring even looks like a recipe to drive viewers to switch to a provider who has settled with broadcasters.

“In retrans deals, broadcasters are always mindful of how regulators will react, but with the FCC’s recent ruling they may feel a bit freer to push hard for the best deal possible,” said MF Global analyst Paul Gallant.

If current retransmission rules were changed so that pay TV outlets could carry programing from broadcasters outside the consumer’s local area, the balance of power might shift markedly.

“You would suddenly have substitutes available for that broadcast signal,” said Bernstein Research senior analyst Craig Moffett.

WASHINGTON, March 3 (Reuters) – U.S. regulators proposed rules on Thursday to protect consumers from service disruptions when talks stall over fees cable and satellite providers must pay for broadcast content.

The Federal Communications Commission will seek comment on changes to its rules on retransmission consent, the negotiations over how much TV distributors should pay for the right to carry the free-to-air signals of ABC, CBS, Fox and NBC.

While most retransmission consent negotiations go on quietly behind closed doors, the disputes drew widespread attention in November after Cablevision Systems Corp (CVC.N: Quote, Profile, Research, Stock Buzz) failed to reach a timely programming deal with News Corp (NWSA.O: Quote, Profile, Research, Stock Buzz) for Fox programming.

More than 3 million New York-area homes experienced a 15-day blackout of local Fox news, the opening of baseball’s World Series and popular shows like “House,” “Glee” and “The Simpsons.”

The FCC largely stays out of fights over broadcast program carriage, but after the Fox-Cablevision spat the agency pledged to explore actions to protect customers from blackouts.

“Consumers have real and understandable concerns,” FCC Chairman Julius Genachowski said at the agency’s open meeting.

Genachowski said it was time to take a fresh look and explore measures the agency could take to make retransmission consent operate more smoothly and serve consumers.