by Joe Gillis, Aug 31 2011 // 9:00 AM
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.
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Posted in: Legal · Mobile · News · Tech
Tagged: 3G, 4G LTE, AT&T, AT&T T-Mobile Merger, Cell Phones, Lawsuits, Mergers, T-Mobile
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by Chris Ullrich, Mar 21 2011 // 11:30 AM
In what may not be completely surprising news but, at least to some, may be disappointing, your choices of wireless carrier in the U.S. look to be dropping by one. Why? AT&T, the nation’s second largest wireless provider, announced late yesterday that they will acquire T-Mobile USA from parent company Deutsche Telekom in a cash and stock deal worth approximately $39 Billion.
What does that mean for you and me? Well, for me at least, it means nothing. I’m a Verizon Wireless customer. For those of you who are not or who enjoy having as many wireless choices as possible, it means you will now have to pick between AT&T, Verizon or Sprint if you want to go with a national wireless company.
Choice and, more to the point, competition, is one of the best things about pretty much any kind of business. Competition forces companies to constantly innovate and hopefully strive to be better and treat customers well so they will stay. Having fewer choices and thus less competition can allow companies to become complacent and not try their best.
With the lackluster reputation AT&T already has with many customers, I can’t see that the company having fewer competitors is a good thing. What’s their motivation to change and be better if the customer has nowhere else to go? The answer is they won’t have any. And that, friends, is not good.
Click through to check out the full press release from AT&T about this announcement.
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Posted in: Mobile · News · Tech
Tagged: AT&T, AT&T T-Mobile, AT&T Wireless, Business, Mergers, Mobile, Press Releases, T-Mobile, Wireless
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