AT&T/T-Mobile merger flopped despite governor, advocacy support

From the outset, it appeared that AT&T had all the political elbow grease it needed to complete its ultimately failed takeover of rival carrier T-Mobile.

Yet pressure from Sprint, the Department of Justice (DOJ), antitrust interests, and finally the Federal Communications Commission (FCC) had AT&T fighting to revise the terms of its buyout proposal. Today, after a nine-month drama of diminishing opportunities to pass the merger, AT&T finally threw in the towel.

Although the deal may have been doomed for some time, early signs pointed to AT&T pocketing T-Mobile's assets. It had the cash ($39 billion, to be precise), the support of T-Mobile parent company Deutsche Telekom, and good friends in the form of lawmakers and policy advocates of all levels.

Here's an overview of some of the most notable supporters (and detractors) of AT&T's acquisition with T-Mobile.

Congress
As of June, 76 of approximately 200 democrats in the House of Representatives supported AT&T's annexation of T-Mobile for the sake of hurrying along the carrier's widespread deployment of 4G LTE.

A group of 15 House democrats even went as far as drafting a letter asking President Obama to intercede with the Justice Department on AT&T's behalf.

Back in August, House Representative Lamar Smith (R-Texas) spoke out against anti-merger arguments that told "only one side of the story." Creating jobs and encouraging innovation among a smaller cast of wireless competitors were two benefits Smith cited.

Meanwhile, Sen. Herb Kohl (D-Wis.), leader of the Senate Judiciary Antitrust Subcommittee, spoke out against the merger on the grounds that it would stifle competition. Other lawmakers--like Reps. John Conyers (D-Mich.), Anna Eshoo (D-Calif.), and Ed Markey (D-Mass.)--went on record to question a "troubling backward step" that could lead to "a duopoly in the wireless marketplace."

State governors
27 state governors went on record to support the merger, ranging from Arizona to West Virginia. All wrote letters to the FCC from May to August, 2011 spelling out how consolidating the No. 2 and No. 4 U.S. wireless carriers would benefit their constituents. Most justifications echoed AT&T's own--chiefly fewer dropped calls and expanded network coverage, especially to rural or more tucked-away communities. Again, speedier LTE deployment across the U.S. was another cited perk. (See the chart at the end for the complete list of governors in favor of the merger.)

Attorneys general
The attorneys general of 11 states submitted a joint letter to the FCC on July 27 to cast their lot with AT&T: Arkansas, Alabama, Georgia, Kentucky, Michigan, Mississippi, North Dakota, South Dakota, Utah, West Virginia, and Wyoming.

Although support was strong in AT&T's favor, as in all levels of politics, there was also a strong current of dissent. In March, New York Attorney General Eric Schneiderman revealed his intentions to review AT&T's proposal with an eye on competition. More recently, on September 16, the attorneys general of California, Illinois, Massachusetts, New York, Ohio, Pennsylvania, and Washington submitted their opposition to the FCC.

Advocacy groups
A diverse group of advocacy organizations also took AT&T's side. The Communication Workers of America, a union of telecommunications workers, estimated that buying up T-Mobile would generate 100,000 new jobs. (AT&T estimated that it could create 5,000.) Other groups included the NAACP, GLADD, and the Sierra Club.

Governors in favor