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!