Dept. of Justice Files Antitrust Suit Against AT&T/T-Mobile Merger
August 31, 2011 at 10:31 AM (PT)
The DEPT OF JUSTICE has filed an antitrust lawsuit against AT&T in an attempt to block the merger of AT&T's wireless operations with DEUTSCHE TELEKOM's T-MOBILE. The merger, valued at $39 billion, would create a company with a ombined 130 million subscribers, more than any other wireless carrier, and the suit notes that between the merged company and VERIZON WIRELESS, two carriers would control over 78% of wireless revenues and 2/3 of mobile subscribers, with SPRINT and regional carriers left with the rest.
The FCC is also reviewing the merger, and Chairman JULIUS GENACHOWSKI said, "By filing suit today, the Department of Justice has concluded that AT&T's acquisition of T-MOBILE would substantially lessen competition in violation of the antitrust laws. Competition is an essential component of the FCC's statutory public interest analysis, and although our process is not complete, the record before this agency also raises serious concerns about the impact of the proposed transaction on competition. Vibrant competition in wireless services is vital to innovation, investment, economic growth and job creation, and to drive our global leadership in mobile. Competition fosters consumer benefits, including more choices, better service and lower prices."