[Satellite TODAY Insider 12-21-11] AT&T’s hand in terminating its $39 billion deal with Deutsche Telekom to acquire T-Mobile was forced by strong opposition from the U.S. Justice Department (DOJ) and the U.S. Federal Communications Commission (FCC), the companies confirmed Dec. 19.

   Federal agencies alleged that the acquisition would cripple competition in the wireless telecom sector and could drive up prices for consumers and competitors.

Industry associations voiced their approval of the deal’s collapse. The Rural Telecommunications Group (RTG) issued a statement Dec. 20 that it was pleased to see AT&T drop its bid to acquire T-Mobile and remove it from the mobile marketplace.

   “AT&T completely miscalculated the American public’s aversion to a lack of choice in the mobile marketplace,” RTG’s General Counsel Carri Bennet said in the statement. “The FCC, DOJ, numerous states and most importantly American consumers have repeatedly stated that AT&T’s proposed takeover of T-Mobile is anticompetitive and would have resulted in a loss of jobs and higher prices. AT&T finally got that message. Hopefully this is the first of many steps in a return to a truly competitive marketplace for all Americans, and especially those in rural markets.”

   Analysts said the pay-TV satellite broadcaster, who actively criticized the potential merge between the two international cellular service providers, holds a powerful hand of assets that is attracting investors. BTIG Research Analyst Walter Piecyk listed a variety of spectrum holders that could be future acquisition targets, including Dish Network itself. “Broadband provider Clearwire, privately held broadband startup LightSquared, Sprint-Nextel and smaller cellular operators Leap Wireless and MetroPCS should all be watched,” said Piecyk. “I’m most convinced that Clearwire could be a focus. Yesterday’s developments are bad news for spectrum starved MetroPCS who is also a potential buyer of Clearwire’s spectrum but now might have to compete with two other operators that are far better financed.”