AT&T issued a statement refuting the Federal Communication Commission’s (FCC) view of its proposed merger with T-Mobile, after the regulator this week said that the deal would “substantially lessen competition and its accompanying innovation, investment and consumer price and service benefits.” The US number two said that the FCC’s competitive analysis “willfully ignores critical facts about the wireless market, and distorts the evidence presented.”

Jim Cicconi, AT&T’s EVP of external and legislative affairs, said: “in our view, the report raises questions as to whether its authors were predisposed.  The report cherry-picks facts to support its views, and ignores facts that don’t.  Where facts were lacking, the report speculates, with no basis, and then treats its own speculations as if they were fact.  This is clearly not the fair and objective analysis to which any party is entitled, and which we have every right to expect. “

The operator also addressed the issue that the FCC chose to release its findings despite the fact that AT&T and T-Mobile have withdrawn their merger application, in order to focus their efforts on securing approval from the US Department of Justice. Cicconi said that: “the decision to issue such a report that has no legal status, without a vote of the Commission, and in a proceeding that has been withdrawn, was also without precedent, and underscores that this was intended more for advocacy and to impact public perceptions.  And neither is a proper basis for action by a regulatory agency.”

Earlier this week, the FCC said that the operators had “failed to satisfy their burden of demonstrating that their [proposed merger] transaction is in the public interest.” It noted that based on its analysis: “the economic and engineering models on which the applicants rely to show consumer benefits are, in the staff’s assessment, unreliable and, at a minimum, raise substantial and material questions of fact.”

Separately, the Financial Times reported that the German government is “increasingly worried” that the deal will fall through, in its role as 32 percent owner of T-Mobile USA’s parent, Deutsche Telekom. It was said that the authority is “all but resigned to the deal failing,” or that the deal will need to be significantly modified in order to gain approval.