in ,

US government looks to stop AT&T purchase of T-Mobile

A few months ago AT&T announced their intentions of plans to purchase T-Mobile USA in a massive $39 billion deal. The news was met with despair by some especially the likes of Sprint who were worried they may directly suffer if any such deal were to go through. Now the US government looks to stop the AT&T purchase of T-Mobile.

An article on Bloomberg is reporting that the US government has made its move because the deal would “substantially lessen competition” in the area. The complaint by The Justice Department was put in today in a federal court in Washington. AT&Ts proposed takeover of T-Mobile, which is part of Deutsche Telekom AG, would go against the US antitrust law as well as a court order preventing any arrangement implementing the deal.

This news comes soon after AT&T promised to create around 5,000 US jobs if the takeover was to go through. The filing also stated “AT&T’s elimination of T-Mobile as an independent, low- priced rival would remove a significant competitive force from the market”.

The move has seen AT&T stock slipping 96 cents at the New York Stock Exchange, but is nothing compared to how much AT&T will have to pay Deutsche Telekom if the deal fails to go through. They would have to pay the company $3 billion in cash, as well as providing T-Mobile with wireless spectrum in some areas. This comes on top of lower charges for calls into AT&Ts network and is thought to cost AT&T a total of $7 billion.

Many consumers especially ones who are subscribers to T-Mobile have also expressed their concerns about any such deal. AT&Ts rivals especially Sprint will also be happy about the possibility of the deal getting blocked. Do you hope the takeover of T-Mobile by AT&T doesn’t go through?

Written by Gary Johnson

Gary has a background in engineering and passion for motorcycles, gadgets, and home cinema. In his early years, his obsession for Hi-Fi technology would see him creating the perfect setup with a good ear for sound quality. While Gary is keen to write about most topics that PR covers, his love for phones finds him reporting a lot of news about applications for iPhone, Android, and other popular operating systems

3
Leave a Reply

avatar
3 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
2 Comment authors
Joseph PriceAndy J Karn Recent comment authors
newest oldest most voted
Joseph Price
Joseph Price

If AT&T buys tmobile that will royally suck. AT&T sucks! Want a cell phone? Sure, give me a $500 deposit per line. Do you know how much tmobile charged me? $50 a fair and reasonable charge. Do you think they will keep the it the same way once AT&T buys them out? The answer is HELL NO! AT&T customer service sucks. How in the heck do they create jobs? Every time I called customer service I had to talk to a damn computer for 10 mins before I finally got to talk to a live person. Eliminate the freaking computer… Read more »

Joseph Price
Joseph Price

If AT&T buys tmobile that will royally suck. AT&T sucks! Want a cell phone? Sure, give me a $500 deposit per line. Do you know how much tmobile charged me? $50 a fair and reasonable charge. Do you think they will keep the it the same way once AT&T buys them out? The answer is HELL NO! AT&T customer service sucks. How in the heck do they create jobs? Every time I called customer service I had to talk to a damn computer for 10 mins before I finally got to talk to a live person. Eliminate the freaking computer… Read more »

Andy J Karn
Andy J Karn

Never used or intend to be with at&t or t-mobile so I couldn’t care less. Let them do what they want. If t-mobile wants to sell, let them. Grandfather in T-Mobile clients and call it a day.

Get Kylie Minogue news with Apple apps

More HP TouchPad stock coming to meet unfulfilled demand