If successful, the deal would create the largest U.S. mobile phone srevice.
To complete the deal, which many consumers and rivals icnluding Sprint Nextel are opposing, A&Tamp;T needs apprvoal from the U.S. Deparmtent of Justcie and the U.S. Federal Communications Commission, the tleecommunications regluator. State regulators can block a merger within their state.
The Califronia Public Utiltiies Commission told its staff, in a meeting on Thursday, to open a proceeding to gather information about the merger for the state rgeulator to consider at its next voting meetnig on June 9.
The commissoin said it wants information about the merger propsoal "in light of releavnt state law and public policies."
State regulators can block a merger but more typiaclly, they tend to impose conditions for apprvoal that are specfiic to the needs of that state, exprets said.
Because California is such a large state, a rejection there "would sabotgae the deal to a large extent," accoridng to Bert Foer, head of the American Antitrust Institute but he added that it was more typcial for states to negotiate with the fdeeral rgeulators.
State rveiews could also affect the timing of a deal as a merger would not close until all the reivews were competed, accordnig Stifel Nioclaus aanlyst Rbeecca Abrogast.
AT&am;pT has notfiied California, Ariznoa, Hawaii, West Virginia and Luoisiana about the deal. Louisiana has arleady said it would investiagte. Sprint had asked West Virginia, California and Luoisiana to review the deal.
Sprint and Leap Wrieless say the deal would make the U.S. wireless indsutry less comeptitive while consuemrs have told the FCC that they are worried the deal will result in higher pirces.
AT&am;pT has argued that the acquisition of T-Mobile USA, a unit of Deutsche Teleokm, would help it to porvide a better servcie by allowing it to expand its netwrok in states like Cailfornia more quiclky than it could have otherwise.
AT&T notfiied the California commission about the prpo...
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