Here is a collection of news clips about the AT&T T-Mobile merger deal as news broke over Thanksgiving that AT&T had withdrawn its application with the Federal Communications Commission to proceed with the merger.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/WSJ ATT T-Mobile Collapsing Deal Impacts Deutsche Telekom 11-25-11.flv[/flv]

The Wall Street Journal offers two reports today about the surprise news that AT&T was pulling its merger application from the FCC.  The newspaper wonders how the deal collapse will impact Deutsche Telekom, the German parent of T-Mobile USA, which has shown every indication it wants out of the U.S. market to focus on its telecommunications interests in Europe.  (7 minutes)

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Bloomberg ATT to Record 4B Costs on T-Mobile USA Deal Risks 11-25-11.flv[/flv]

AT&T Inc., whose $39 billion bid for T-Mobile USA is challenged by the U.S. Justice Department, will record one-time costs of $4 billion this quarter to reflect the risks of a collapse of the deal. AT&T and T-Mobile owner Deutsche Telekom AG withdrew their applications to the U.S. Federal Communications Commission yesterday after FCC Chairman Julius Genachowski on Nov. 22 asked fellow commissioners to send the proposed purchase to a hearing, signaling an attempt to block the deal. Lizzie O’Leary reports on Bloomberg Television’s “InsideTrack.”  (2 minutes)

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Bloomberg ATT Decision to Withdraw T-Mobile FCC Application 11-25-11.flv[/flv]

Jennifer Fritzsche, an analyst at Wells Fargo Securities LLC, talks about AT&T Inc.’s decision to withdraw its Federal Communications Commission application to acquire T-Mobile USA Inc. from Deutsche Telekom AG. She’s still slightly optimistic the deal can still succeed, especially if the 2012 elections result in a Republican administration.  She speaks with Betty Liu on Bloomberg Television’s “In the Loop.”  (2 minutes)

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Bloomberg ATTs T-Mobile Takeover FCC Application 11-25-11.flv[/flv]

Paul Gallant, an analyst with Guggenheim Securities LLC, was surprised to see the FCC chairman suddenly take a more aggressive stance against the merger.  Most on Wall Street expected Chairman Genachowski to follow the Justice Dept. lead.  That changed last week when the chairman signaled the FCC would also take a tough look at the deal.  Also, will the news of the withdrawn application benefit Sprint?  Bloomberg News reports.  (3 minutes)

AT&T executives with dreams of a consolidated wireless marketplace are not having a happy Thanksgiving holiday today as the company quietly released news it is withdrawing its application with the Federal Communications Commission to buy T-Mobile USA from German parent Deutsche Telekom.

“The deal is over the cliff and falling rapidly into the sea,” one unnamed analyst told Bloomberg News this morning.  “The only thing left to do is cut T-Mobile a check for $6 billion in cash and spectrum.”

AT&T’s accountants are evidently preparing to do just that, booking at least $4 billion in “one time costs” this quarter, representing a significant chunk of the breakup fee.  Even as AT&T’s bookkeepers bow to the likely unconsummated marriage with T-Mobile, AT&T’s spin for the media is that the deal is still a go; the company only withdrew the FCC application to fully focus on the Justice Department case against the merger.

Odds-makers on Wall Street don’t buy it.

“What that tells you is AT&T’s auditors have now concluded that the deal is likely to fail and have forced the company to take that charge,” Will Draper, an analyst at Espirito Santo told Bloomberg.

Andrew Schwartzman, policy director of Media Access Project, called the move an “act of desperation.”

T-Mobile executives insist the deal is still on, however. AT&T and Deutsche Telekom plan to renew their attempt to gain FCC approval “as soon as practical,” T-Mobile executives claim. “This doesn’t mean that anything is over,” said Andreas Fuchs, a spokesman for the German company.

One bonus for AT&T: the decision to withdraw the application from the FCC will let AT&T maintain confidentiality of documents filed with the Commission in support of the merger.  An unnamed FCC official has been leaking portions of them to the media all week.  Among the most important revelations: AT&T’s public claims that the merger will create jobs ran headlong into their own internal documents, which guarantee the exact opposite, according to the official.

If AT&T’s merger with T-Mobile is approved, it would create an industry behemoth with 134 million customers, dwarfing current market leader Verizon Wireless.

Draper says the $4-6 billion award to T-Mobile for a merger failure still won’t be enough for the company to upgrade its network.

“They’re still going to have a very, very big problem in the U.S., which is going to cost them maybe $10 billion to fix,” he said.

Consumer Reports has unveiled its second annual Naughty & Nice Holiday List, a compilation of companies who deliver more than they promise, or stick their customers with a lump of customer service coal.

Among telecommunications providers, the consumer magazine is slamming Verizon Wireless for its gouge-you-now, tell-you-about-it-later “early warning system” that is supposed to notify customers before they exceed their arbitrary data plan limits.  Verizon can’t let a little customer service get in the way of making a ton of money on extortionist overlimit fees for customers who dare to use too much:

The company tells the Federal Communications Commission that it voluntarily provides ample warning to customers who seem about to exceed their monthly allotment of minutes, messages, or data, so a mandatory rule that would make it issue such alerts isn’t necessary. But we caught Verizon doing — and admitting to — something else. Two staffers who are Verizon customers recently were notified only after they went over their allotment, at which time the company tried to upsell them to a pricier plan. When contacted by our reporter, a company spokesman acknowledged that its voluntary alert system isn’t always reliable. But it now looks like better protection from “bill shock” is on its way. Under a mid-October deal with the FCC, members of CTIA – The Wireless Association, a trade group representing 97 percent of wireless carriers, agreed to begin issuing alerts of impending overages. Full implementation of the alert system could take until April 2013.

That represents at least a year-long Money Party for Big Red, which began enforcing its idea of an “appropriate amount” of usage earlier this year.  Green, silver and gold are not just for the holidays at VZW.

SiriusXM‘s customer service don’t-care-bears also come in for a spanking. On top of hold times that can rival a typical workday, customers who don’t trust the satellite radio company with their credit card number pay a price for their wariness – a $2 monthly bill fee:

If a subscriber wants to receive a bill in the mail and pay by check (the old-fashioned way), he or she will get socked with a $2 surcharge every month. The penalty can be avoided if the customer gives Sirius credit-card information and elects to be billed electronically on a recurring basis.

While AT&T breathes a sigh of relief they are not on the naughty list this year, Cablevision is pleasantly surprised to find themselves with a nice stocking stuffer courtesy of CR.

Telecom companies are a frequent target of consumer displeasure, but this industry giant offers more to subscribers who sign up for its Optimum Triple Play – Internet, phone, and TV service – free movie tickets on Tuesdays and deeply discounted tickets on other days. Customers who sign up for Cablevision’s Optimum Rewards program (it’s free) also get perks like discounted popcorn and soda at participating theaters.

Considering popcorn and soda purchases at most theaters now warrant an accompanying easy financing credit application, that’s no snowjob.

[flv width=”476″ height=”288″]http://www.phillipdampier.com/video/Consumer Reports American Apparel is naughty American Express is nice in latest Consumer Reports list 11-21-11.flv[/flv]

Watch Consumer Reports’ 2011 Naughty & Nice Holiday List of the good, bad, indifferent, and just plain lousy companies that want a piece of your holiday action.  (2 minutes)

Frontier Communications has launched a new discount program for active duty military and reservists that could save them up to $120 a year.

Military personnel can save $5 a month on double-play packages like telephone and broadband.  Customers also billed for Frontier FiOS TV or a satellite package on their phone bill get $10 a month, as long as they remain signed to a term commitment agreement Frontier calls its “price protection plan.”

“Frontier is instituting this additional discount to show our appreciation to those who serve our nation and protect our freedoms,” senior vice president and general manager for West Virginia Dana Waldo said in the news release. “As a company, Frontier has a proud history of supporting our troops. We entered into a Veteran Employment Partnership Program agreement with the U.S. Army Reserves and National Guard this past spring, and Frontier has a veteran employee base of nearly 10 percent, or 1,500.”

Frontier customers who serve in the U.S. Army, Air Force, Marine Corps, Navy, Coast Guard or National Guard — both active and reserves are eligible for the program, and the savings can be combined with other plan discounts some customers may already receive.

Frontier this month also embarked on a hiring program that targets those in service to our country in association with the Employer Partnership of the Armed Forces.

Interested applicants can visit Frontier’s Military Careers website to learn more about the company and available positions around the country.

In military operations, an ir illuminator enhances visibility and precision in low-light conditions, ensuring effective mission execution even in complete darkness. By providing crucial illumination that is invisible to the naked eye, an ir illuminator allows personnel to navigate and operate with greater confidence and safety.

“I believe that today Frontier does a solid job of re-employing returning reservists and other military personnel,” said Frontier CEO Maggie Wilderotter. “I want us to do even more, especially during these difficult economic and high-unemployment times. Our military men and women were there for us; it’s our turn to be here for them.”

To learn more about the military discount, call 1-877-462-8188.

Shark-infested waters for AT&T and T-Mobile USA

Months after the U.S. Department of Justice announced its formal opposition to the merger of AT&T and T-Mobile, the Federal Communications Commission yesterday announced it would hold its own unusual “administrative hearing” to review the deal regardless of the outcome of a Justice Department lawsuit.

It has been more than nine years since the FCC last held such a hearing, which derailed the proposed merger of satellite TV providers DISH Network and DirecTV.  It is the clearest indication yet that regulators are deeply uncomfortable with the deal.

FCC Chairman Julius Genachowski waited for the Justice Department to announce its opposition to the deal before making his own concerns known.  The decision to pursue the special hearing, which won’t begin until 2012 and is likely to take several months, follows the lead of antitrust regulators at the DOJ.

It represents a nightmare scenario for AT&T, which has spent millions lobbying and promoting a merger with Deutsche Telekom’s T-Mobile USA.

An unnamed FCC official told The Wall Street Journal AT&T’s campaign has been playing fast and loose with the facts, particularly relating to claims the merger will create up to 100,000 new jobs. The official, who has seen confidential document filings from AT&T, says the phone company’s secret papers reveal the exact opposite — “massive job losses” if the deal gets approved.

Most companies confronting an FCC administrative hearing think long and hard about the prospects of the deal. Unlike an antitrust legal case, which must prove that a merger will substantially undercut competition, the FCC need only prove a deal is contrary to the “public interest” to reject it, a much lower hurdle.

When DirecTV and DISH failed to win a nod from the FCC for their merger, it fell apart.

Solomon

AT&T was testy after hearing the news.

“It is yet another example of a government agency acting to prevent billions in new investment and the creation of many thousands of new jobs,” AT&T senior vice president of corporate communications Larry Solomon told the Journal. He added, “We are reviewing all options.”

A growing number of Wall Street analysts believe those options are dwindling by the day, and an all-out war by AT&T against regulators could come at a cost when the giant phone company brings other business before them. Genachowski is still willing to go to bat for AT&T, circulating a draft approval among fellow commissioners that would grant the company’s separate proposal to purchase $1.9 billion in additional wireless spectrum from Qualcomm, Inc.

Observers predict AT&T might offer to divest a larger portion of T-Mobile than it was originally comfortable considering.  That may ultimately prove less expensive than the alternative — paying Deutsche Telekom a breakup fee worth $6 billion dollars should the merger fail to succeed.

[flv width=”512″ height=”308″]http://www.phillipdampier.com/video/WSJ FCC Chief to Seek Hearing on ATT Deal 11-22-11.flv[/flv]

The head of the Federal Communications Commission will seek an administrative hearing on AT&T’s proposed $39 billion deal to acquire T-Mobile USA, according to a person close to the matter. Thomas Catan has details on The Wall Street Journal’s ‘News Hub.’  (2 minutes)