DOJ Attempts to Thwart AT&T’s Proposed Acquisition of T-Mobile

AT&T is trying to acquire T-Mobile.  But, the Department of Justice (DOJ) disapproves of the acquisition and filed a lawsuit in the U.S. District Court for the District of Columbia.  Announced today, the DOJ states that the proposed $39 million dollar transaction would stifle innovation, increase telecommunication prices, and limit options for consumers.  Read more from the DOJ’s press release and the complaint.

The DOJ announces some interesting statistics:

“Americans live and work, with more than 300 million feature phones, smart phones, data cards, tablets and other mobile wireless devices in service today.   Four nationwide providers of these services – AT&T, T-Mobile, Sprint and Verizon – account for more than 90 percent of mobile wireless connections.   The proposed acquisition would combine two of those four, eliminating from the market T-Mobile, a firm that historically has been a value provider, offering particularly aggressive pricing.”

How many of you think AT&T and T-Mobile will settle by withdrawing their proposed acquisition?  How many of you think that AT&T and T-Mobile have the funds and resources to battle out this trial without crying chicken any time soon?  For now, it looks like everyone is going full steam ahead!

Steaming Biscuits

Full steam ahead and fresh out of the oven

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