x PhoneArena is looking for new authors! To view all available positions, click here.
  • Home
  • News
  • US Gov't files to block AT&T's acquisition of T-Mobile

US Gov't files to block AT&T's acquisition of T-Mobile

Posted: , by Victor H.

Tags:

US Gov't files to block AT&T's acquisition of T-Mobile
While IFA is heating up in Europe, huge news is happening stateside as the US Department of Justice has filed to block AT&T’s planned $39 billion acquisition of T-Mobile over anti-competitive concerns, according to reports appearing almost simultaneously on Bloomberg, The Wall Street Journal and Reuters.

The DOJ has grounded its filing by saying that “AT&T’s elimination of T-Mobile as an independent, low-priced rival would remove a significant competitive force from the market.” In an official statement on its website, the department clarified that the deal would result in "in higher prices, poorer quality services, fewer choices and fewer innovative products." It also explained that AT&T was pressured by T-Mobile offering a couple of industry firsts including the first Android phone, the Sidekick and national Wi-Fi hotspots. Feel free to check out the source link for the full press release of the Justice Department with all the juicy details and reasoning.

Sprint shares almost immediately jumped 8% on the news as the carrier and its CEO Dan Hesse headed opposition to the deal.

But it’s AT&T that has to face the biggest question now - how about that $3 billion in compensation fees it is required to pay T-Mobile if the deal isn’t approved? AT&T shares dropped 5% immediately. The carrier has to fight not only the DOJ, but also the Federal Communication Committee, which sided with the government on the matter, so its odds aren’t high. 

The FCC has issued the following statement:

"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."


114 Comments
  • Options
    Close




posted on 31 Aug 2011, 10:44 19

1. remyrz (Posts: 188; Member since: 28 Oct 2010)


YEYYY love competition :)

posted on 31 Aug 2011, 10:47 18

4. brant (Posts: 24; Member since: 08 Aug 2011)


Amen... Now let hope this can actually stop it not just delay it.

posted on 31 Aug 2011, 11:39 2

26. bigdawg23 (Posts: 362; Member since: 25 May 2011)


Even if this stopped it won't lower prices. It won't be longer before Sprint drops unlimited. The only way prices will drop to what people want is stop using cell phones, and that ain't happening.

Everyone said when AT&T dropped Unlimited in June 2010 it was the end of them. They continue to grow and the iPhone is on VZW and rumored to be hitting T-Mo and Sprint.

If price was that important than Sprint and T-Mo would not be bleeding customers.

posted on 31 Aug 2011, 12:00 1

41. brant (Posts: 24; Member since: 08 Aug 2011)


Price is important it just not the only factor. If you think that only having two big companies with one middle size one is better then it is now your entitled to your opinion just like I am. I just happen to see how more carries in Europe leads to better prices and service for the consumer. Att buy tmobile is just one step further away for that.

posted on 31 Aug 2011, 11:57 3

38. Lucas777 (Posts: 2131; Member since: 06 Jan 2011)


it will be stopped... which i do not believe shud be allowed to happen... idk it is like google buying moto or hp buying palm... its a player in the game who's loosing and gets bought buy another player... the gov really shudnt block the deal if att has raised the funds and been successful as a company...

posted on 31 Aug 2011, 12:06 2

43. brant (Posts: 24; Member since: 08 Aug 2011)


This would be more like Google or Apple buying rim not Motorola.

posted on 31 Aug 2011, 15:13

90. Lucas777 (Posts: 2131; Member since: 06 Jan 2011)


not really.. tmobile wasn't on that much of a downline.. they were like moto which was declining slightly over time.. and its not like they provide much more to the market than moto does.. they offer service just like moto does and they are one of many just like moto...

posted on 01 Sep 2011, 05:29 1

110. fairly_mismatched (unregistered)


It's not like Google buying Moto at all. Google and Motorola were not in competing markets. Google is software/search (advertising?), Moto is hardware.
Even with HP buying Palm. What you essentially had was a hardware company acquiring software in the form of WebOS.
A more accurate analogy would be Google buying Bing. Which would be "search" buying "search" competitor.

posted on 31 Aug 2011, 11:23 11

20. firebo14 (Posts: 77; Member since: 16 Aug 2011)


"in higher prices, poorer quality services, fewer choices and fewer innovative products."

That is completely true, it is similar to Apple, if they are the only one selling, then there are higher prices, poorer quality services, fewer choices and fewer innovative products.

posted on 31 Aug 2011, 14:21 5

83. WakaFlakaD (Posts: 360; Member since: 30 Apr 2011)


This has made my day! THANK GOD+ JESUS!

posted on 31 Aug 2011, 16:34 1

97. mannyfs (Posts: 63; Member since: 11 Feb 2011)


yeah i dont think anyone at all supports this, effff u ATT!

posted on 31 Aug 2011, 10:45 18

2. oddmanout (Posts: 435; Member since: 22 May 2009)


I can just see Dan Hesse screaming "YES!" while fist pumping and doing cartwheels in joy.

posted on 31 Aug 2011, 12:13 4

44. wolfordtw (Posts: 16; Member since: 17 Aug 2011)


Lmao yeah I bet mr hesse was just caught beating off in his office

posted on 31 Aug 2011, 13:46 4

70. Droid_X_Doug (Posts: 5717; Member since: 22 Dec 2010)


Hesse is definitely the big winner in this outcome. Any AT&T-Mobile combination is basically dead going forward. If AT&T tries to fight the DOJ in the courts, it will be time to short the AT&T stock. They gambled and lost. Now T-Mobile gets to see if they can construct a business plan around the break-up fee and the other concessions AT&T had to put on the table to do the deal.

One other possible outcome is where Sprint picks up T-Mobile and gets access to the AT&T LTE network.... That would be the ultimate irony - Sprint f*cking AT&T.

posted on 31 Aug 2011, 10:47 5

3. iKingTrust (banned) (Posts: 716; Member since: 27 Jul 2011)


I tipped this story. yea boy

posted on 31 Aug 2011, 11:09 4

16. GoWKing (unregistered)


Did you have to? The same article hit BGR. engadet, and tmonews hours ago.

posted on 31 Aug 2011, 11:26 3

21. iKingTrust (banned) (Posts: 716; Member since: 27 Jul 2011)


Its not my fault this website is late.

posted on 31 Aug 2011, 12:21 2

52. KEVlN (Posts: 83; Member since: 19 Aug 2011)


i gave u a thumbs up just because u had unnecessary thumbs downs. but i think hes trying to say that big news like this don't need tipping. And i agree. I'm sure they knew about this around the same time all the other tech reporting sites knew. If they found this news through you, they would have acknowledged your name or stated that it was tipped in the article. The tip button is mainly for news that you encountered yourself, not through other sites (especially other big tech sites who already posted articles on the matter). Not trying to rain on your parade but its there job to know these things asap and the odds of them finding this news through you is unlikely.

posted on 31 Aug 2011, 13:29 1

65. iKingTrust (banned) (Posts: 716; Member since: 27 Jul 2011)


Why would it be unlikely? Do you even know who i am?
I will answer that, NO.

As a site about tech, they should have posted this when tehy got the email this morning. It aint my fault like i said, i was trying to help out.

posted on 01 Sep 2011, 05:34

111. fairly_mismatched (unregistered)


The reciprocal could also be stated... do you even know who KEVIN is? My guess is no.

I honestly am not sure which is worse, beer muscles or internet muscles.

Sheesh, he even gave you a thumbs up...

posted on 31 Aug 2011, 11:27 3

22. pyckvi (Posts: 48; Member since: 19 Dec 2010)


thanks for tipping this story here :-) this is the only site i like reading news on. i preffer here rather than phonedog phonescoop gsmarena etc

posted on 31 Aug 2011, 11:34 4

24. iKingTrust (banned) (Posts: 716; Member since: 27 Jul 2011)


Honestly me too. I like the set up. Plus i love all the Anti Apple talk. I love to see people bothered over a company they have no control of, lol.

Im wierd. I feed off haters.

posted on 31 Aug 2011, 12:33 1

56. GoWKing (unregistered)


No reason to thank him 4 taking credit 4 things he didnt do. The article wasnt tipped. He mite have submitted the tip but PA didnt find out by him

posted on 31 Aug 2011, 12:40 3

58. oddmanout (Posts: 435; Member since: 22 May 2009)


-1 No need to be rude about it. Why does every post have to have drama in the comments? Just play nice lol. Who cares if he tipped or not... let him have his glory lol.

posted on 31 Aug 2011, 13:35 1

69. iKingTrust (banned) (Posts: 716; Member since: 27 Jul 2011)


Thank you oddmanout. I just made them aware that this story needed to be posted. i like using this site but they need to be more on point with the news.

When i say "i tipped" i was just messing around. This is obviously public record.
And who the f**k writes 4? It's for dumb ass.
A typo is one thing being ignorant is another.

Ok i feel better now. LOL.

posted on 31 Aug 2011, 13:29

66. iKingTrust (banned) (Posts: 716; Member since: 27 Jul 2011)


Who gives a f**k? They should have been posted this.

posted on 31 Aug 2011, 10:50 6

5. Mobile-X-Pert (Posts: 565; Member since: 20 Dec 2010)


justice!!!

posted on 31 Aug 2011, 10:52 11

6. Mr.Mr.Upgrade (Posts: 425; Member since: 30 Aug 2011)


Mann at&t just can't win, first your wife iPhone cheats on you with Verizon,now she prostituting for sprint and t mobile for nickels and dimes, what a hooker lol

posted on 31 Aug 2011, 10:55

7. snowgator (Posts: 3201; Member since: 19 Jan 2011)


????????????????

posted on 31 Aug 2011, 10:58

8. iKingTrust (banned) (Posts: 716; Member since: 27 Jul 2011)


lmao m

posted on 31 Aug 2011, 11:01 5

12. remixfa (Posts: 13903; Member since: 19 Dec 2008)


lol. not only is your wife cheating on you with all the other big guys, the government says you cant have a civil union with your new love interest. what a bad bad day for ATT.


I still think its going to go through.. this is political posturing. Next comes MORE bribes from ATT to those lovely senators that get to vote on the merger.

posted on 31 Aug 2011, 11:19 2

18. darth8ball (Posts: 519; Member since: 02 Aug 2011)


I usually agree with your posts remixfa but I gotta disagree with on this one. I knew from the get go that the government wouldn't let this one go through. I posted when first reported that this would be a giant sh*t sandwich for AT&T. They might try to get some spectrum for their 3 Billion dollars but who knows.

posted on 31 Aug 2011, 11:30 3

23. pyckvi (Posts: 48; Member since: 19 Dec 2010)


remixfa u r right they will bribe, but even the ppl in office know that this will really hurt much more in the long run.

posted on 31 Aug 2011, 11:44 2

27. remixfa (Posts: 13903; Member since: 19 Dec 2008)


they have already been caught bribing like 90 of 100 senators involved in the merger.

The DoJ cant deny the merger, they can merely voice thier dissaproval with it. The FCC blocks the merger. The only thing this does is protects some of those bribed senators butts as they can say "look i voted against it while i was over at the DoJ" all the while they were taking bribes to help it go through. Its no different than when the senators kept going after baseball players for steroids. At the same time they were passing crap bills that they knew the public wouldnt like. Its slight of hand. Look at my left hand while i slap you with my right.

welcome to washington.

posted on 31 Aug 2011, 11:51 2

31. cnwwyo (Posts: 125; Member since: 26 May 2011)


glad to see there are still some people awake out there, thx remix

posted on 31 Aug 2011, 11:55 2

36. pyckvi (Posts: 48; Member since: 19 Dec 2010)


lmao thats hillarious! honestly i really do not care about the merger anymore im gonna leave them for good for sprint on the 16th. tmo can suck on att's crotch. while ill be riding on wimax unlimited :-)

posted on 31 Aug 2011, 12:04

42. ummmmok (unregistered)


@pyckvi are u retarded? have fun with that wimax when sprint switches over to LTE and ur wimax no longer works and neither will the Wimax 4G phone you have on the new LTE network. epic fail

posted on 31 Aug 2011, 15:23 1

93. pyckvi (Posts: 48; Member since: 19 Dec 2010)


@ ummmmok: really? u think that sprint will just sell their 4G phone/phones to just suddenly drop the 4g service on them in a few months? if that happens than its at least gonna be 3 years later. u clearly are the retard.

posted on 31 Aug 2011, 11:57 1

39. pyckvi (Posts: 48; Member since: 19 Dec 2010)


although i still am curious of how this will turn out

posted on 31 Aug 2011, 12:16 1

47. wolfordtw (Posts: 16; Member since: 17 Aug 2011)


Lol yeah her long term goal is to be in every mans pants.

posted on 31 Aug 2011, 13:17 1

64. bolaG (Posts: 468; Member since: 15 Aug 2011)


LMAO!

posted on 31 Aug 2011, 10:59 4

9. snowgator (Posts: 3201; Member since: 19 Jan 2011)


Wow. Another major story I might be wrong on. This one I do not mind so much. I am sure it is far from over, as AT&T has a lot invested in this. But I really, really hope AT&T is blocked from this. I cannot see how it helps anyone except AT&T.

But, I can not help but wonder- what becomes of T-Mobile if it doesn't go through? It is not like T-Mobile just up and becomes profitable.

posted on 31 Aug 2011, 11:08

14. Phoneguy007 (Posts: 218; Member since: 02 Jun 2011)


Why is every one so against att...i mean after all its t-mobile that does not want its customers any more.

posted on 31 Aug 2011, 13:47 2

71. networkdood (Posts: 6267; Member since: 31 Mar 2010)


Good point, PG. A lot of these posters are really pathetic and get off on hating something. I guess their own lives are boring and they need something to give them pleasure.

posted on 31 Aug 2011, 12:14 2

45. remixfa (Posts: 13903; Member since: 19 Dec 2008)


ATT has to pay Tmobile 3 billion dollars if the deal fails. What happens then is anyones guess. Maybe they will go back to talks with Sprint about a merger which while still hurting the industry, hurts it a heck of a lot less than ATT swallowing them. Of course the sprint merger would be the epitomy of complicated since all their networks are polar opposites.

But, no worries, the ATT merger will go through. I say it still has like a 85% chance of passing on through.

posted on 31 Aug 2011, 14:12 1

79. corps1089 (Posts: 492; Member since: 20 Jan 2010)


Sprint would have to cancel thier October 7th network detilas press meeting if they have to change course to incorporate TMob

posted on 31 Aug 2011, 10:59 1

10. MR GREEN (unregistered)


Now look for Sprint to attempt to merge again with T-Mobile, to offer both GSM AND CDMA services... Remember, they were in talks to merge before AT&T swooped in and proposed to buy T-Mobile...

posted on 31 Aug 2011, 11:05 2

13. KEVlN (Posts: 83; Member since: 19 Aug 2011)


Sprint wasn't interested in merging.

posted on 31 Aug 2011, 11:52 2

33. cnwwyo (Posts: 125; Member since: 26 May 2011)


yeah right, *** t & t just beat em to the punch

posted on 31 Aug 2011, 11:57

40. cnwwyo (Posts: 125; Member since: 26 May 2011)


**** = G A Y...LOOOL

posted on 31 Aug 2011, 13:35 1

68. danalmillan (Posts: 25; Member since: 08 Jul 2011)


Sprint was not at all interested in merging with T-Mo as their networks are not compatible...Sprint already went through a lot just trying to get everything stable after the Nextel merger which was an all new network for them. T-Mo's networks are totally incompatible with the ones Sprint currently has so they would have to expand their network portfolio even more to even be able to support T-Mo. It would make absolutely no financial or other business sense for Sprint and T-Mobile to merge!

posted on 31 Aug 2011, 13:49 3

72. remixfa (Posts: 13903; Member since: 19 Dec 2008)


danal,
in the short term, i agree it makes no sense. But if you look at it in the long term it does. Both are going to LTE. Sprint is already making the moves for it and if this deal fails Tmobile is going to be 3 billion dollars richer. That could really speed up an LTE buildout by a few years. Once both networks are on LTE for data, they are able to roam off each other. Once they do a voice transition to LTE then they are 100% compatible.

If that happened and of course thats a huge if, I would assume that they would operate as 2 seperate networks under 1 umbrella (like VZW/VZL/Vodaphone or Tmo Dutch/Tmo USA) until the LTE build out was complete

Complicated? heck yea. impossible? not at all.

posted on 31 Aug 2011, 11:09 1

15. Phoneguy007 (Posts: 218; Member since: 02 Jun 2011)


and might I add that sprint ceo was employed with att for 23 years lol...

posted on 31 Aug 2011, 11:01 1

11. box (unregistered)


Now as long as Deutsch Telecom takes T-Mobile off the table and leaves it as its own separate entity, I'll be just fine with that. No more mergers/buyouts!

posted on 31 Aug 2011, 11:52 2

32. bluechrism (unregistered)


I'd be fine if they sell it to someone else, but not AT&T or verizon or sprint. The US market needs to retain at least 4 vaible national carriers for good competition.
If Deutche Telecom are desperate to sell, Invite Vodafone, Three, Rogers, Cincinatti Bell, or the T-Mo MVNO's to bid. Put them out tob tender inviting bids from other national operators(excluding big AT&T verizon, sprint), operators in canda and mexico, and multinational operators with No presence in the USA to bid for them.

posted on 31 Aug 2011, 14:03 1

77. Phoneguy007 (Posts: 218; Member since: 02 Jun 2011)


rogers is att sister company,cincinatti bell was part of the old bell compaines and no one else is really wants to put up the capital to buy tmo...

posted on 31 Aug 2011, 11:17 5

17. GALAXY-S (Posts: 701; Member since: 07 Jun 2011)


Really hoping it doesnt go through i def dont want to go to AT&T or be forced to move to Sprint :( !! i like it here were i am with Tmo.

posted on 31 Aug 2011, 11:21 3

19. bossmt_2 (Posts: 430; Member since: 13 Oct 2009)


Not shocked, they'd be setting Verizon up to buy Sprint whenever they want, and wouldn't be able to stop them cause of them letting this go through.

T-Mo will still likely be acquired by someone.

posted on 31 Aug 2011, 11:38 3

25. iKingTrust (banned) (Posts: 716; Member since: 27 Jul 2011)


I think we may be seeing the end of ATT at the top. I been with ATT since 1999 but i'm leaving for Sprint.
-ATT service sucks. I only been with them because of the iPhone but now if Sprint gets the iPhone I AM GONE! I try to be loyal but they cant get it together. :,,(

posted on 31 Aug 2011, 11:47 3

30. Phoneguy007 (Posts: 218; Member since: 02 Jun 2011)


if you think att service sucks wait until you go to sprint I have them both and they all suck... lol

Want to comment? Please login or register.

Latest stories