Arizona Commission approves AT&T/T-Mobile merger

The Arizona Corporation Commission has approved AT&T's proposed $39 billion acquisition of T-Mobile USA without a hearing.

The commission, which regulates the state's utilities, concluded the transaction wouldn't adversely affect's the firms' state subsidiaries or their ability "to provide safe, reasonable, and adequate service."

The firms claim the transaction would help alleviate their respective "impending spectrum crises" and help accelerate the deployment of next-generation wireless broadband throughout the state.

Arizona is the first of several states that have shown an interest in reviewing the transaction to approve the deal. The commission's staff indicated the proposed benefits are "important to the continued and future quality of telecommunications services to Arizona consumers."

"After a thorough review of the facts we are pleased the Arizona Corporation Commission formally approved our merger," AT&T said in a statement. "We look forward to bringing the latest wireless broadband technology, 4G LTE, to the citizens of Arizona.”

Arizona Governor Janice Brewer wrote in support of the merger the last month citing AT&T's pledge to deploy next-generation wireless to more than 97 percent of the country. Brewer said Arizona's rugged terrain makes wireless coverage a priority for the business, education and public health sectors.

"The proposed AT&T/T-Mobile merger is a single transaction that promises to get the ball rolling towards addressing each of these issues for our state and the nation," said Brewer, who joins two dozen other governors in backing the merger.

"At the very least, this deal is a springboard for launching American wireless service into the next generation."

The FCC is currently reviewing the transaction to determine whether it would adversely impact consumers. Opponents, including a number of public advocacy groups, argue the loss of low-cost competitor T-Mobile will lead to higher prices and less innovation in the wireless market. 

The groups recently asked the Federal Communications Commission to hold public hearings on the merger around the country similar to the field hearing held in Chicago last year on the Comcast-NBC Universal merger. 

But field hearings outside the Beltway are rare, and there is no expectation the FCC will comply.

This post was updated at 2:25 p.m.