U.S. Government Sues to Block AT&T, T-Mobile Merger

To be honest, I’m surprised it took this long. But now it seems our government here in the U.S. has finally decided to take action and attempt to stop a merger that should not take place anyway.

That’s right, the government has filed a lawsuit in an attempt to block AT&T’s proposed $39 Billion acquisition of T-Mobile USA. According to the complaint, such a deal would “substantially lessen competition” in the U.S. wireless market. Bloomberg reports that the complaint was filed with the U.S. Justice Department on Wednesday, and the government is asking for a declaration that the proposed merger would violate U.S. antitrust laws.

“AT&T’s elimination of T-Mobile as an independent, low- priced rival would remove a significant competitive force from the market,” the U.S. said in its filing. AT&T has argued that it needs T-Mobile’s spectrum in order to improve service quality and cover the majority of the U.S. population with 4G LTE service.

Well, I can understand them wanting to improve service quality. However, competition is good and as long as T-Mobile is around, AT&T will have to work that much harder. That won’t hurt them one bit. In fact, it might just help them.

  • Bedlam
    August 31, 2011 at 6:30 pm

    So….Sprint, Verizon, Boost Mobile, Virgin, Cricket, MetroPCS, Tracfone, and US Cellular don’t have the competitive might to take on AT&T/TMobile? We need to have T-Mobile around to keep providing low quality phones on a less than stellar network.

    • Chris Ullrich
      September 1, 2011 at 12:48 am

      Competition is good. The more the better. And no, T-Mobile is a much bigger company and has much more national reach than most of those others.

      Only Sprint and Verizon are true competition for AT&T but they are not GSM. T-Mo is the only real GSM competitor.

%d bloggers like this: