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Louisiana approves AT&T/T-Mobile merger
The Louisiana Public Service Commission voted Wednesday to approve AT&T's proposed $39 billion acquisition of T-Mobile USA, making it the second state to approve the deal, with three other reviews still ongoing.
The commission is the state's regulatory body for utilities and certain telecommunications sectors and joined the Arizona Corporation Commission in approving the deal by a vote of 4-1.
“We are pleased that the Louisiana Public Service Commission has completed its review of our merger with T-Mobile and has voted not to oppose the transaction," said an AT&T spokesman via email, citing support for the merger from 26 state governors, 72 mayors, 77 House Democrats and a dozen labor unions, as well as high-tech firms including Microsoft and Facebook.
A staff report from last week argues the opposition comments filed by Sprint are largely focused on national issues currently being weighed by the Federal Communications Commission (FCC) and Department of Justice (DOJ), not Louisiana-specific issues that would justify the state blocking the merger.
The Louisiana commission is empowered to reject AT&T's filing if it is found to be against the public interest, but the staff report argues the deal will result in at least $8 billion in investments, some of which will be in Louisiana, along with increased rural broadband coverage and new jobs in the state, thanks to AT&T's pledge to deploy next-generation wireless broadband nationwide.
"While Staff understands that Sprint disagrees with these contentions, the Joint Reply Comments contain a commitment to that affect [sic]," the report states.
"Staff also notes that the proposed acquisition has received overriding support locally, as is evidence by the diverse number of groups and officials who are in support."
Sprint noted in an emailed statement that the Commission voted not to oppose the merger and deferred to the FCC's ongoing review. Hawaii, California and West Virginia are still conducting reviews of the merger.
"Today’s Louisiana Public Service Commission decision not to oppose AT&T’s takeover bid for T-Mobile was far from the ringing endorsement AT&T sought," said Sprint spokesman John Taylor, expressing confidence the FCC and DOJ will block the deal.
"It’s quite clear from the evidence before the FCC that AT&T’s bid to takeover T-Mobile will harm consumers not just in Louisiana, but indeed across the country by raising prices, limiting competition and hurting innovation."
This story was updated at 5:46 p.m.
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