AT&T’s Acquisition of Leap Wireless

On March 13, 2014, the Federal Communications Commission (FCC) issued an order approving, subject to certain conditions, the spectrum license transfers required to complete AT&T’s $4 billion acquisition of Leap Wireless. This approval completed the regulatory review of the transaction, and AT&T closed the transaction on the same day. Compass Lexecon provided economic analysis in support of the regulatory review of the transaction at both the FCC and the Department of Justice (DOJ). Compass Lexecon expert, Mark Israel was retained by Richard Rosen of Arnold & Porter LLP and Wm. Randolph Smith of Crowell & Moring LLP on behalf of AT&T, and Compass Lexecon expert, Michael Katz was retained by Christine Wilson of Kirkland & Ellis LLP on behalf of Leap. Israel and Katz were supported by a Compass Lexecon team including Theresa Sullivan, Tom Stemwedel, Dzmitri Asinski, David Fenichel, Nauman Ilias, Jeff Raileanu, Gloriana Alvarez, Sara Leshen, Andrea Ortu, Ben Wagner, and Phil Wolf. During the regulatory review, Israel submitted two Declarations to the FCC and made a presentation to the DOJ, demonstrating that the transaction would provide substantial consumer benefits while generating minimal, if any, upward pricing pressure in a properly defined mobile wireless services market, and that the transaction presented no issues related to spectrum concentration or other competitive concerns. The Compass Lexecon team also supported counsel in all aspects of the regulatory review including substantial work in responding to DOJ and FCC data requests.