AT&T's merger with T-Mobile teeters

week in review In the face of regulatory resistance, AT&T appears to be bracing for the end of its intended $39 billion merger with T-Mobile.

AT&T said this week that it will take a $4 billion accounting charge in the fourth quarter to cover a breakup fee to T-Mobile should the deal fail to gain regulatory approval. AT&T and T-Mobile parent Deutsche Telecom also said they've withdrawn their pending approval applications to the Federal Communications Commission "to facilitate the consideration of all options at the FCC and to focus [the companies'] continuing efforts on obtaining antitrust clearance for the transaction from the Department of Justice either through the litigation pending before the United States District Court...or alternate means."

The move comes as the chairman of the FCC said he doesn't believe that AT&T's proposed $39 billion deal to acquire T-Mobile USA is in the public interest. And he's asking the other four commissioners to approve an administrative hearing, in which AT&T would have to prove otherwise.

In a briefing with reporters, FCC officials said that their evaluation of the deal found that the merger between AT&T and T-Mobile would create an "unprecedented" level of concentration in the wireless market. Officials went on to say that it was impossible to see how the deal could serve the public interest.

More headlines

Is Facebook building its own phone?

Rumors of a Facebook phone have emerged once again, as AllThingsD reports that the social-networking site is working with HTC to build a Facebook-integrated smartphone.
•  Facebook phone: Who would buy this thing?

Surprise! Microsoft quietly opposes SOPA copyright bill

Microsoft applauded a Senate bill that aimed to delete "rogue Web sites" from the Internet. But it's drawn the line at the broader Stop Online Piracy Act.
•  How SOPA would affect you: FAQ

For HP, a tough road ahead

There are no quick fixes for Hewlett-Packard. Here's a look at five particularly worrisome areas for the company in 2012.
•  HP's outlook for '12 may not fit worst-case scenario
•  HP CEO: 'Googles, Facebooks calling us' due to HDD shortage

Anonymous exposes info of pepper spray cop

Activist group releases contact information for officer who sprayed women protesters with pepper spray.
•  Pepper-spraying cop now getting the full Internet treatment
•  The joy of viral art inspired by UCD pepper-spray video

Does this mean Reed Hastings won't be Microsoft's CEO?

Not long ago people speculated that Netflix's CEO, who is on Microsoft's board, might be on the short list to replace Steve Ballmer some day. Given Netflix's recent meltdown, however, if such a list existed, it's been crumpled up.
•  How low can Netflix's stock go? Much lower, analysts say
•  Netflix selling $200 million in bonds

HP surprisingly emerges as No. 2 tablet maker

The TouchPad fire sale did wonders for Hewlett-Packard's tablet business, according to an NPD study. That boost won't last much longer, though.
•  After iPad, Kindle Fire most desired tablet, study finds
•  Which tablet is best for textbooks?
•  Lenovo prepping 5-inch Android-based tablet, report says

Also of note
•  Forget 'six degrees'--we are actually closer
•  YouTube expands movie service with Disney films
•  Sorkin: Yep, I was pitched to pen Steve Jobs movie