FCC approves AT&T's acquisition of Dobson

The U.S. Federal Communications Commission said on Thursday it approved AT&T Inc.'s (T.N: Quote, Profile, Research) acquisition of Dobson Communications Corp. (DCEL.O: Quote, Profile, Research).

The FCC said it approved the transfer of licenses from Dobson to AT&T in connection with the deal, but also required the companies to divest licenses and some network facilities in a handful of areas. AT&T announced the $2.8 billion cash deal in June, saying Dobson shareholders would receive $13 a share.

Last month AT&T got the Justice Department's endorsement of the deal after agreeing to sell assets in rural areas in five states. FCC commissioners said on Thursday the deal was in the public interest because it would bring rural customers new wireless technologies and services available on AT&T's network.

But even though they concluded the deal would be beneficial for customers, some commissioners took issue in some ways with how the agency had analyzed competition in the wireless market.

In particular, several commissioners said that in determining how competitive the market is, the agency prematurely included competition from the winner of an upcoming auction of wireless spectrum. Commissioner Michael Copps said that spectrum is "quite possibly years away" from being a reality in the market.

"Competition and, more importantly, consumers are put at risk by this type of sloppy math," Copps said.