U.S. Moves to Block AT&T Merger with T-Mobile

[Corrine]

Via another forum:

The Justice Department sued on Wednesday to block AT&T’s proposed $39 billion acquisition of T-Mobile, a deal that would create the largest carrier in the country and reshape the industry.“The department filed its lawsuit because we believe the combination of AT&T and T-Mobile would result in tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for their mobile wireless services,” said James M. Cole, the deputy attorney general.AT&T said it would “vigorously contest this matter in court.”

More at the source: U.S. Moves to Block AT&T Merger with T-Mobile - NYTimes.com

[securitybreach]

I just read this earlier and was not in the lease bit surprised by this. I knew they would not let this pass without some intervention.ATT is already too big IMO

[Neil P]

I hope they are successful in blocking the deal. A market that would be consolidated to AT&T, Verizon and Sprint is terrible. How long before Sprint gets gobbled up in that scenario? It's already bad enough with just those three plus T-Mobile. The entire telecommunications network of the US has a messed up past as it is. Six of the seven Baby Bells are now either a part of AT&T or Verizon. Verizon owns MCI (which merged with WorldCom). It would be interesting (read: depressing) to see a flowchart or other infographic on how all of these companies were merged and acquired following the breakup of AT&T.

[Neil P]

It would be interesting (read: depressing) to see a flowchart or other infographic on how all of these companies were merged and acquired following the breakup of AT&T.

It's the internet, I should have known one would already be out there:

[goretsky]

Hello,It has been my experience that when competitive choice vanishes, consumers suffer the most. Increased competition means companies have to innovate by providing newer, faster services to consumers while charging less for them than the next company. I hope the acquisition is not allowed to proceed at all.Regards,Aryeh Goretsky

[Corrine]

At least seven states including New York, California, Illinois, Pennsylvania, Washington and Ohio have announced they are joining the Justice Department lawsuit to stop AT&T’s attempted buyout of T-Mobile USA.The merger has been heavily criticized by consumer groups for its potential to reduce wireless competition and stifle the marketplace with just two dominant carriers — AT&T and Verizon Mobile. Now several Attorneys General have joined the voices of opposition to the merger.

More at Source: Seven States Sue AT&T Over T-Mobile Merger; Seek Protection for Wireless Consumers | Stop the Cap!

[securitybreach]

More at Source: Seven States Sue AT&T Over T-Mobile Merger; Seek Protection for Wireless Consumers | Stop the Cap!

[crp]

I'm not commenting on the AT&T + TMobile situation, as I know next to nothing about it.However, I did work in the telecommunications sector at the time of the Big Breakup , for the real AT&T and NYNEX (don't ask how i managed that). AT&T and the Baby Bells did not get along, there were arguments about almost everything. But both sides did agree about one aspect of the business - there was no way the Baby Bells were going to not merge with each other and with outsiders. They all knew that data was coming and coming quickly, and data was not going to be like voice.btw: the argument has been made that the breakup of AT&T turned out to be very bad for USA consumers of the digital mobile age. I don't agree but if you like having one mandated ubiquitous standard, you probably would.

Edited September 20, 2011 by crp