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WASHINGTON (Reuters) – AT&T Inc's $39 1000000000 effort to acquire Deutsche Telekom AG's T-Mobile casts doubt on the U.S. government's ability to swiftly hit contract to foregather the palmy demand for wireless services.

Wireless companies hit long lobbied for hold to deal with what they wager as a looming "spectrum crunch" as more consumers invoke to ambulatory devices including Apple Inc's iPhone to wave the Web.

AT&T -- the No. 2 U.S. ambulatory carrier ofttimes criticized for dropped calls and slow unification speeds -- is not inactivity for polity remedies witting to liberated up airwaves for ambulatory band to hold it foregather ever-growing demands for video and data.

But the move could slow legislation necessary to liberated up spectrum for sell to wireless carriers, a possibleness thorn in the agent Communications Commission's agenda.

"The way things impact in Congress, there's competition for what issues get the lawmakers' time and resources," Medley Global Advisors shrink Jeffrey Silva said.

Top lawmakers hit already signaled an welfare in scrutinizing the large-scale transaction.

The planned integration would increase AT&T's spectrum holdings -- the airwaves utilised for wireless communication -- nearly 20 proportionality from 0.86 to 1.02 rate per meg subscribers.

AT&T's Ralph de la Vega, chief executive of the company's wireless unit, said in broadcasting interviews this hebdomad that AT&T faced a spectrum shortage in the "short term."

A demand of spectrum would mean clogged networks, more dropped calls and slower unification speeds for subscribers.

The deal would "add power sooner than some alternative" and offers a hurried resolution "to the impending exhaustion of wireless spectrum," the consort said in a release.

"AT&T is alive that there are restrictive initiatives to liberated up newborn spectrum but, in their world, they can't afford to wait," Silva said.

LEGISLATION MAY STALL

The U.S. polity has been hunting for underused airwaves to make 500 rate of spectrum available over the incoming 10 eld for wireless services.

But such of the organisation hinges on TV broadcasters agreeing to part with portions of their highly sought after airwaves and Congress granting the FCC dominance to stop motivator auctions that would equilibrate broadcasters for that spectrum.

Broadcasters hit upraised concerns about gift up their airwaves, and hit considerable hold among lawmakers because of their news of home-town politics.

Paul Gallant, an shrink with MF Global, said AT&T's effort for T-Mobile puts a dimmer looking on the probability of lawmakers moving spectrum legislation this year.

"We would today place the odds of Congress expiration major spectrum legislation in 2011 at 35 percent," he said in a investigate note.

Gallant said lawmakers could view the integration as gift AT&T what they requirement without disputable legislation.

The subcommittee has regular a chance on spectrum for Apr 12.

The chance could shed light on whether there's consensus on Washington Hill that a wireless spectrum crisis exists. "That could be the large obstacle if there's not an acknowledgment that there is a looming spectrum crunch," Silva said.

Still, the "win-win-win outcomes" of motivator auctions freeing up airwaves, funding a open country meshwork and reducing the inadequacy module stimulate lawmakers to act by 2013, Gallant said.

But the FCC has urged for swifter action.

A grownup FCC official, who crosspiece on information of not being named, said some possibleness movement of existing spectrum among wireless companies does null to solve the basic difficulty of making more spectrum available to assist the manducate the wireless industry faces.

"If we do null in the grappling of the looming spectrum crunch, some consumers module grappling higher prices ... and preventative service -- connections that drop, apps that separate unreliably or too slowly," FCC Chairman Julius Genachowski said in a style this hebdomad at a wireless industry event.

He declined to interpret on the planned merger.

(Reporting by Jasmin Melvin, editing by Maureen Bavdek)

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