Google Is Faulted for Impeding U.S. Inquiry on Data Collection(Photo)

When Google first revealed in 2010 that cars it was using to map streets were also sweeping up sensitive personal information from wireless home networks, it called the data collection a mistake. On Saturday, federal regulators charged that Google had “deliberately impeded and delayed” an investigation into the data collection and ordered a $25,000 fine on the search giant.The finding, by the Federal

AT&T proposes divestiture to salvage T-Mobile deal

AT&T Inc., with its T-Mobile USA takeover facing regulatory opposition, is preparing the biggest remedy proposal yet to the Justice Department to salvage the $39 billion deal, according to a person familiar with the plan.

The company is considering an offer to divest a significantly larger portion of assets than it had initially expected, said the person, who declined to be identified because the plan isn't public. Though the exact size of the divestiture hasn't been determined, it could be as much as 40 percent of T-Mobile USA's assets, the person said.
The divestiture is an attempt to address the concerns of the Justice Department, which sued to block the takeover on Aug. 31, saying the deal would "substantially lessen competition" in the wireless market. The acquisition was dealt another blow Tuesday, with the Federal Communications Commission signaling an attempt to block it.
"It's going to be problematic for AT&T to find a successful divestiture solution," said Kevin Smithen, an analyst with Macquarie Securities USA Inc. in New York. The pool of potential buyers isn't very big and those that might be interested probably wouldn't have a chance, Smithen said. "It's unlikely that the DOJ would allow a big competitor like Verizon to purchase the assets," Smithen said.
AT&T fell 0.5 percent to $27.41 at the close in New York. The stock has lost 6.7 percent this year. T-Mobile owner Deutsche Telekom AG added 1.6 percent to 8.83 euros in Frankfurt and has declined 8.6 percent this year.
Brad Burns, an AT&T spokesman, and Andreas Fuchs, a Deutsche Telekom spokesman, declined to comment.
The asset-sale proposal, which could come as early as the next Justice Department hearing on Wednesday, might be the only remaining option if the second-largest U.S. wireless operator wants to avoid a lengthy court battle in its bid to become the country's top mobile carrier. The purchase may vault it past Verizon Wireless, depending on the size of the divestitures.
On Thursday, AT&T and Deutsche Telekom asked to pull their deal applications to the FCC so the companies could better focus on the Justice Department lawsuit. AT&T also said it would take a one-time charge of $4 billion to cover the breakup fee it will need to pay to Deutsche Telekom if the deal fails.
One approach is to propose a remedy that would lessen the market impact of losing the fourth-largest wireless service provider. The second approach is to fight the court case, which is scheduled to begin Feb. 13.
According to a term in the agreement, AT&T would be able to pay less than the deal's original $39 billion value if regulators demand asset sales that surpass 20 percent of that figure, or about $7.8 billion, three people with direct knowledge of the situation said Sept. 7.
AT&T could walk away from the deal and pay Deutsche Telekom a breakup fee if the concessions requested top 40 percent of that value, the people said. If the deal doesn't happen, there's no way AT&T can avoid paying the breakup fee, the people said.

AT&T asks for support on T-Mobile

Returning recently from a six-month leave to battle cancer, AT&T's top executive in North Carolina is leading a "full-court press" to generate public support in this state for AT&T's $39 billion acquisition of competitor T-Mobile.

Cynthia Marshall vows the corporate merger, which would create a telecom giant with more than 130 million customers nationwide, would alleviate the nagging problem of dropped calls and sluggish traffic that has overwhelmed AT&T's wireless network.

In North Carolina, as in many other states, regulators have no say over the merger.

Still, Marshall said support from North Carolina lawmakers, advocacy groups and others carries much weight in persuading federal regulators to bless the merger as being in the public interest.

"The voice coming out of North Carolina is powerful," Marshall said Wednesday during a meeting with reporters at The (Raleigh) News & Observer. "It's very important. We want this to happen."

Return from treatment

She estimates she is spending up to 40 percent of her time focused on touting the benefits of the T-Mobile deal. It will be the seventh merger during her 30-year career in telecommunications.

The deal was announced in March, as Marshall was consumed by chemotherapy treatments and her fight against colon cancer. Even during that time, she worked from home to promote the deal's merits. Now in remission, she returned to work full time this month.

Disparate groups - including labor unions, the NAACP, Gov. Bev Perdue and even the N.C. Sweet Potato Commission - have written to urge the Federal Communications Commission at AT&T's urging to approve the controversial merger as the best way to boost wireless coverage and expand broadband service, especially in rural areas.

"We all have experienced dropped calls, slow speeds and all that," Marshall said. "This merger is pretty much going to make this a thing of the past."

The FCC and the Justice Department aren't expected to rule on the deal until next year.

Foes cite costs

Opponents, including Sprint Nextel and some consumer groups, are urging regulators to block the deal or to require tough restrictions. U.S. Sen. Herb Kohl, a Wisconsin Democrat, wrote in a letter to federal regulators this week that the deal should be blocked because it will lead to higher prices and fewer choices for consumers.

Marshall said that's not true and that the acquisition is crucial because it would give AT&T access to T-Mobile's underused wireless spectrum. That would ease the data crush on AT&T's network, which is clogged with video and other downloads from smartphones and tablets. And that would allow it to expand its high-speed wireless network into rural areas and to add services.

Ken Rehbehn, an analyst with the Yankee Group, said in the nation's biggest metro areas, AT&T would expand its spectrum capacity by about 40 percent. T-Mobile's network is not nearly as congested as AT&T's. The deal would bring much-needed, albeit temporary, relief to AT&T and its customers.

"The work to get all this support just shows how vital this acquisition is to AT&T," Rehbehn said. "If they fail in this effort, I don't see an obvious Plan B to remain competitive."

T-Mobile's presence in North Carolina was negligible until its 2007 acquisition of regional provider SunCom Wireless. Neither T-Mobile nor AT&T will disclose T-Mobile's customer numbers in this state. T-Mobile's customers are mostly clustered in the New Jersey-New York corridor as well as other urban centers.

Marshall expects the deal, which also has support from a large telecom labor union, won't result in widespread job cuts. AT&T employs about 7,500 people in North Carolina and would continue hiring as it invests billions to expand the reach of its broadband networks.

She didn't provide specific hiring projections.