AT&T - T-Mobile Deal Blocked By DOJ http://snapvoip.blogspot.com/
We were surprised this morning by the reports on Bloomberg and the WSJ saying that the United States Department Of Justice (DOJ) is lopposing the AT&T’s proposed $39 billion acquisition of T-Mobile on antitrust grounds.
The news is scant but Bloomberg grabbed the following from the complaint filed in federal court stating;
“AT&T’s elimination of T-Mobile as an independent, low- priced rival would remove a significant competitive force from the market.”Later FCC chairman Julius Genachowski stated;
“By filing suit today, the Department of Justice has concluded that AT&T’s acquisition of T-Mobile would substantially lessen competition in violation of the antitrust laws. Competition is an essential component of the FCC’s statutory public interest analysis, and although our process is not complete, the record before this agency also raises serious concerns about the impact of the proposed transaction on competition. Vibrant competition in wireless services is vital to innovation, investment, economic growth and job creation, and to drive our global leadership in mobile. Competition fosters consumer benefits, including more choices, better service and lower prices.”
Of course AT&T is unhappy about the news and plans to take action. Should the deal fall through, AT&T will have to pay Deutsche Telekom, the parent company of T-Mobile upwards of 6 Billion.
AT&T's Wayne Watts,senior executive VP and general counsel released the following statement regarding the news stating that they plan to fight the decision in court;
We are surprised and disappointed by today’s action, particularly since we have met repeatedly with the Department of Justice and there was no indication from the DOJ that this action was being contemplated. We plan to ask for an expedited hearing so the enormous benefits of this merger can be fully reviewed. The DOJ has the burden of proving alleged anti-competitive affects and we intend to vigorously contest this matter in court.Yes we want T-Mobile, as a separate entity.
At the end of the day, we believe facts will guide any final decision and the facts are clear. This merger will:
* Help solve our nation’s spectrum exhaust situation and improve wireless service for millions.
* Allow AT&T to expand 4G mobile broadband to another 55 million Americans, or 97% of the population.
* Result in billions of additional investment and tens of thousands of jobs, at a time when our nation needs them most.
We remain confident that this merger is in the best interest of consumers and our country, and the facts will prevail in court.