I hope this deal never gets through. AT&T is pricy and its customer service is aweful. AT&T is only the choice I have on the west coast for land line. T-mobile is only the choice for a cell phone if you don't want to deal with AT&T.
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U.S. Moves to Block AT&T Merger with T-Mobile
DEALBOOK, On Wednesday August 31, 2011, 10:56 am EDT
The Justice Department filed a complaint 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 complaint, which was filed in the United States District Court for the District of Columbia, said that T-Mobile "places important competitive pressure on its three larger rivals, particularly in terms of pricing, a critically important aspect of competition." The complaint also highlighted T-Mobile's high speed network and its innovations in technology.
"AT&T's elimination of T-Mobile as an independent, low-priced rival would remove a significant competitive force from the market," the complaint said. "Thus, unless this acquisition is enjoined, customers of mobile wireless telecommunications services likely will face higher prices, less product variety and innovation, and poorer quality services due to reduced incentives to invest than would exist absent the merger."
Shares of AT&T dropped nearly 4 percent on the news, to less than $29. Deutsche Telekom shares fell 5 percent in trading in Frankfurt.
Ever since AT&T announced plans to buy T-Mobile from Deutsche Telekom for $39 billion in March, the deal has proved controversial. Lawmakers, consumer advocates, and rivals have voiced opposition to the merger, saying it would significantly reduce competition. The deal would have left just three major players: AT&T, Verizon and the significantly smaller Sprint Nextel.
"Sprint urges the United States government to block this anti-competitive acquisition," Vonya McCann, Sprint's senior vice president for government affairs, said back in March. "This transaction will harm consumers and harm competition at a time when this country can least afford it."
AT&T has moved to drum up support for the deal of late. On Wednesday, it announced plans to bring 5,000 call-center jobs back to the United States.
"Does this shore up an issue that people have?" Randall Stephenson, AT&T's chief executive, said in an interview on Tuesday. "Sure, I hope it does."
