Seven States Join to Block AT&T, T-Mobile Merger
>By James Lenhart
The AT&T, T-Mobile merger is progressively turning into a mess and it looks like seven state attorneys are in agreement that this merger should not go through. The states involved with joining the lawsuit are California, Illinois, Massachusetts, New York, Ohio, Pennsylvania and Washington. We know that Sprint is happy to see others joining their side, because in the event the merger goes through Sprint can say goodbye to much of the footing it had in mobile. The very base of this lawsuit revolves around the fact that this merger promotes anti-competitiveness, which is something I don’t believe consumers are concerned with. For the most part we pick carriers based on coverage, price, and phone selection. And I strongly believe those options would become scarce if the deal went through.
So what are we to do? Nothing. This is by far out of the public’s control, but I’m very glad to see the Government, Sprint, and now state attorneys taking a stand against something that is clearly the wrong choice. In retrospect I’m not even sure how the merger would benefit consumers if it did go through. So far most of what I’ve heard from AT&T is that T-Mobile is a broken carrier that’s about to fall on it’s face and could use any help it can get. If there so bent out of shape why the hell would you want to buy them?
AT&T’s argument is that they need spectrum, and by acquiring T-Mobile they would have access to another network instead of building out their own — but for $39 billion? This is just me speculating, but with that type of money you’d think AT&T could do something amazing. Here’s a snippet from a Wired reader who obviously thinks the merger is a bad idea, ”AT&T’s zero-bars reception merged with T-Mobile’s customer service. I think the result might just collapse into a black hole of suck.”
Generally speaking, T-Mobile customers that know the details are not for the merger. The only ones supporting the merger are AT&T and T-Mobile, while the rest are completely against it (DOJ, Sprint, state attorneys, and customers), so here’s my suggestion to AT&T — give up, and fork over the goods to T-Mobile, because even if you win this battle you’ll still have to face the final ruling of the FCC.
Sprint Statement on State Attorneys General Decision to Join U.S. Justice Department Lawsuit to Block AT&T’s Proposed Takeover of T-Mobile
WASHINGTON (BUSINESS WIRE), September 16, 2011 – This afternoon, the U.S. Department of Justice announced that seven state attorneys general representing California, Illinois, Massachusetts, New York, Ohio, Pennsylvania and Washington joined the department’s lawsuit against AT&T, T-Mobile and Deutsche Telekom. The Justice Department filed its amended complaint in the U.S. District Court for the District of Columbia.
Vonya McCann, Sprint Nextel (NYSE: S) senior vice president for Government Affairs, issued the following statement:
“After a comprehensive review of the facts related to AT&T’s proposed takeover of T-Mobile, seven state attorneys general have reached the same conclusion as the U.S. Department of Justice: This proposed takeover violates antitrust law and would harm consumers, competition and our nation’s economy. This is a strong stand for American consumers, and Sprint commends this bipartisan group of state attorneys general for joining with the U.S. Justice Department to protect consumers, competition and American jobs.”
About Sprint Nextel
Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 52 million customers at the end of 2Q 2011 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. Newsweek ranked Sprint No. 6 in its 2010 Green Rankings, listing it as one of the nation’s greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint.