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Justice Dept says "NO" to AT&T/T-Mo Merger
Well, this will brighten everyone's day a bit.............. from CNBC
The Department of Justice said Wednesday it filed a lawsuit to block AT&T's acquisition of rival T-Mobile USA from Germany's Deutsche Telekom on antitrust grounds.
Mike Kemp | Getty Images
Shares of AT&T [T 28.43 -1.19 (-4.02%) ], the second largest wireless carrier, shed more than 3 percent on the news.
The action is a huge blow to AT&T and its CEO Randall Stephenson, who has sounded confident for months that the deal would clear regulatory hurdles.
Rival Sprint Nextel [S 3.81 0.26 (+7.32%) ] shares jumped 6.15 percent on the report. The cash-and-stock transaction would have catapulted AT&T past Verizon Wireless [VZ 35.95 -0.36 (-0.99%) ] to become the nation's largest wireless provider, and would have left Sprint Nextel as a distant number three.
Earlier Wednesday, there were reports that AT&T had pledged to bring 5,000 wireless call center jobs, currently based abroad, back to the US if it is allowed to proceed with the proposed $39 billion acquisition of T-Mobile.
The company also promised that the merger would not result in any job losses for AT&T and T-Mobile USA wireless call center employees who are on the payroll in the U.S. when the deal closes.
AT&T's commitment to repatriate jobs comes as antitrust regulators at the Federal Communications Commission and the Justice Department ramp up their reviews of a combination that is certain to reshape the wireless industry's landscape.
Although AT&T said it has not yet determined where the new U.S.-based jobs would be located, it promised they would offer "highly competitive wages and benefits." The company hopes this message will carry weight in Washington, where job creation is a top priority for the Obama administration as the nation faces the possibility of a recession heading into the 2012 election.
"At a time when many Americans are struggling and our economy faces significant challenges, we're pleased that the T-Mobile merger allows us to bring 5,000 jobs back to the United States and significantly increase our investment here," AT&T Chairman and Chief Executive Randall Stephenson said in a statement.
Beyond the call center operations, AT&T has said it does anticipate some workforce duplication after the deal closes, but expects to make reductions largely through natural attrition.
The proposed merger has met opposition, including from public interest groups and Sprint, insist it will lead to fewer choices and higher prices for consumers by eliminating a carrier that offers lower rates and less expensive plans than competitors. They also fear the deal could jeopardize Sprint's future as an independent company and ultimately lead to a wireless industry duopoly.
AT&T and T-Mobile argue that the acquisition would benefit consumers.
They say it would lead to fewer dropped and blocked calls and faster mobile Internet connections for subscribers by allowing the companies to combine their limited wireless spectrum holdings at a time when both are running out of airwaves to handle mobile apps, online video and other bandwidth-hungry services.
They also say the transaction would position AT&T to cover more than 97 percent of the U.S. population with its new high-speed, fourth-generation wireless service.
Finding more airwaves to keep up with the explosive growth of wireless broadband services and ensuring that all Americans have access to high-speed Internet connections are both top priorities of the FCC and the Obama administration.
- 08-31-11, 11:07 AM #3
I guess AT&T will just have to deal with being number 2. Literally and figuratively....lmao
The [DoJ] went on to say that the deal could potentially cause "higher prices, poorer quality services, fewer choices and fewer innovative products for the millions of American consumers who rely on mobile wireless services in their everyday lives."
Last edited by pcgizmo; 08-31-11 at 11:13 AM.
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08-31-11, 11:13 AM #4
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Justice Dept. to block AT&T's T-Mobile deal | The Digital Home - CNET News
Justice Dept. to block AT&T's T-Mobile deal
By: Don Reisinger August 31, 2011 7:53 AM PDT
The U.S. Department of Justice has filed a petition with a federal court in Washington, D.C. to block AT&T's proposed takeover of T-Mobile USA.
The Justice Department said in its filing with the U.S. District Court for the District of Columbia that the deal would "substantially lessen competition" in the wireless industry, and thus, should be blocked from approval. The organization went on to say that the deal could potentially cause "higher prices, poorer quality services, fewer choices and fewer innovative products for the millions of American consumers who rely on mobile wireless services in their everyday lives."
Amen .. merger (hopefully) RIP
Last edited by mandony; 08-31-11 at 11:18 AM.
- 08-31-11, 01:37 PM #8
Apparently they're suing, so it could be decided in favor or against at a later date. But Deutsche Telekom was quoted as saying they didn't want to put anymore funds into tmo usa, so if the suit wins and the merger is disallowed then I'm wondering what will happen to tmo next. I was a customer of theirs for 9 years and only left for lack of coverage issues where I was going. I'd hate to see them come to a bad end. I always thought their call quality was top notch, was kind of hoping AT+T's would improve with the merger. Have to see how it washes out I guess. Time will tell.
- 08-31-11, 02:15 PM #10
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08-31-11, 05:59 PM #12
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I'm actually glad but it's not over yet. I wonder what's gonna happen to TMO if this merger is laid to rest. DT doesn't want to throw money into TMO USA anymore. I wonder how many other companies are lining up to purchase TMO USA. Perhaps no one wants to invest in them.
- 08-31-11, 06:57 PM #14
T-Mobile will get bought by someone else if this does not go through. There was a cable conglomerate (Comcast, Cox, etc.)that was interested, I believe Dish Network has interest, etc. AT&T's justifications are all crap. They are sitting on hoards of spectrum, they already are going to get Qualcomm's 700MHz spectrum, and no way after spending $36 Billion will prices drop. It's disgusting that government has sit back and let AT&T and Verizon rebuild to bigger than their pre-80's breakup level.
- 09-01-11, 03:24 AM #16
That's kind of unfortunate. The merger would have given AT&T 2x25 and 2x20 MHz channels where I was kind of suspecting they were planning on deploying LTE-Advanced (in the 2x25). Without t-mobile the spectrum isn't contiguous.
- 09-03-11, 09:22 AM #17
- 09-04-11, 02:13 PM #21
Praying this falls through. The FCC has a problem with the merger too. T-Mobile will get $6B in cash and spectrum if this falls through as well so they'll be able to build out their network and hopefully roll out LTE themselves.
- 09-04-11, 04:19 PM #23
If Sprint has its way and AT&T and T-Mobile do not wed in the proposed $39 billion acquisition, AT&T would have to pay $6 billion, making it the most expensive pre-nuptial divorces of corporate would-be marriages. Sounds confusing? If AT&T doesn’t get U.S. government approval to acquire rival carrier T-Mobile USA, AT&T must pay its rival $3 billion in cash, $2 billion for spectrum, and $1 billion for a roaming agreement. Disclosure of the roaming and spectrum agreement were not announced and AT&T did not have any comments related to those terms.
- 09-04-11, 08:43 PM #24
The 9700 came out almost 2 years ago - fall of 2009 l. The almost identical (except for very slightly better camera) 9780 came out about 10 months later.
The low end 9300 with a 2mp camera (5mp for the 9780) came out about the same time. I believe processor is slower on 9300 as well.
TM did not get the "real" upgrade a year ago - the 9800.
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09-07-11, 08:49 PM #25
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Ollie, make up your mind, please! One day you love T-Mobile and your POS RIM product and.next you are glad to have your iCrap and at&suck!
Also in regards to the 9810, you couldn't pay me enough money to rock that device over a 9900. I can't.stan the portrait style. I will take the weaker camera.....
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