(Updated With FCC Statement, Full Text Of DOJ Statement) Department Of Justice Moving To Block AT&T/T-Mobile Takeover

Updated: Thisismynext received a statement from FCC Chairman Julius Genachowski and it’s not looking good for AT&T:

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.

We’re very short on details but Bloomberg and the Wall Street Journal are reporting that the Department of Justice is attempting to block the AT&T/T-Mobile merger. The DOJ has filed an anti-trust complaint.

The Justice Department complaint was filed today in federal court inWashington. The U.S. is seeking a declaration that Dallas-based AT&T’s takeover of T-Mobile, a unit of Deutsche Telekom AG (DTE), would violate U.S. antitrust law and a court order blocking any arrangement implementing the deal.

“AT&T’s elimination of T-Mobile as an independent, low- priced rival would remove a significant competitive force from the market,” the U.S. said in its filing.

Developing…

Bloomberg

Justice Department Files Antitrust Lawsuit to Block AT&T’s Acquisition of T-Mobile

Transaction Would Reduce Competition in Mobile Wireless Telecommunications Services, Resulting in Higher Prices, Poorer Quality Services, Fewer Choices and Fewer Innovative Products for Millions of American Consumers

WASHINGTON – The Department of Justice today filed a civil antitrust lawsuit to block AT&T Inc.’s proposed acquisition of T-Mobile USA Inc.   The department said that the proposed $39 billion transaction would substantially lessen competition for mobile wireless telecommunications services across the United States, resulting in higher prices, poorer quality services, fewer choices and fewer innovative products for the millions of American consumers who rely on mobile wireless services in their everyday lives.

The department’s lawsuit, filed in U.S. District Court for the District of Columbia, seeks to prevent AT&T from acquiring T-Mobile from Deutsche Telekom AG.

“The combination of AT&T and T-Mobile would result in tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services,” said Deputy Attorney General James M. Cole.   “Consumers across the country, including those in rural areas and those with lower incomes, benefit from competition among the nation’s wireless carriers, particularly the four remaining national carriers.   This lawsuit seeks to ensure that everyone can continue to receive the benefits of that competition.”

“T-Mobile has been an important source of competition among the national carriers, including through innovation and quality enhancements such as the roll-out of the first nationwide high-speed data network,” said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.   “Unless this merger is blocked, competition and innovation will be reduced, and consumers will suffer.”

Mobile wireless telecommunications services play a critical role in the way 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.

According to the complaint, AT&T and T-Mobile compete head to head nationwide, including in 97 of the nation’s largest 100 cellular marketing areas.   They also compete nationwide to attract business and government customers.  AT&T’s acquisition of T-Mobile would eliminate a company that has been a disruptive force through low pricing and innovation by competing aggressively in the mobile wireless telecommunications services marketplace.

The complaint cites a T-Mobile document in which T-Mobile explains that it has been responsible for a number of significant “firsts” in the U.S. mobile wireless industry, including the first handset using the Android operating system, Blackberry wireless email, the Sidekick, national Wi-Fi “hotspot” access, and a variety of unlimited service plans.   T-Mobile was also the first company to roll out a nationwide high-speed data network based on advanced HSPA+ (High-Speed Packet Access) technology.  The complaint states that by January 2011, an AT&T employee was observing that “[T-Mobile] was first to have HSPA+ devices in their portfolio…we added them in reaction to potential loss of speed claims.”

The complaint details other ways that AT&T felt competitive pressure from T-Mobile.   The complaint quotes T-Mobile documents describing the company’s important role in the market:

  • T-Mobile sees itself as “the No. 1 value challenger of the established big guys in the market and as well positioned in a consolidated 4-player national market”; and
  • T-Mobile’s strategy is to “attack incumbents and find innovative ways to overcome scale disadvantages.   [T-Mobile] will be faster, more agile, and scrappy, with diligence on decisions and costs both big and small.   Our approach to market will not be conventional, and we will push to the boundaries where possible. . . . [T-Mobile] will champion the customer and break down industry barriers with innovations. . . .”

The complaint also states that regional providers face significant competitive limitations, largely stemming from their lack of national networks, and are therefore limited in their ability to compete with the four national carriers.   And, the department said that any potential entry from a new mobile wireless telecommunications services provider would be unable to offset the transaction’s anticompetitive effects because it would be difficult, time-consuming and expensive, requiring spectrum licenses and the construction of a network.

The department said that it gave serious consideration to the efficiencies that the merging parties claim would result from the transaction.   The department concluded AT&T had not demonstrated that the proposed transaction promised any efficiencies that would be sufficient to outweigh the transaction’s substantial adverse impact on competition and consumers.   Moreover, the department said that AT&T could obtain substantially the same network enhancements that it claims will come from the transaction if it simply invested in its own network without eliminating a close competitor.

 

Tags: , , , , , , , ,

  • AlealeG2

    Does this mean that tmobile will receive that $6 billion dollars because the merger was blocked? this would help them out with more spectrum!!
    WINNING

    • Anonymous

      Don’t forget, part of the concession if the merger fails is that T-Mobile gets some of AT&T’s spectrum.

    • PistolPete76

      3 Billion and a lot of spectrum that could be woth billions more,

  • Anonymous

    How can you block the number 2 carrier from buying the number 4? This is a buyout…..not a merger. DT willingly offered to sell TMO USA to AT&T for 39B. If TMO USA was successful, they wouldn’t be up for sale. TMO USA isn’t performing well in the market….With that being said, how can the DOJ cry wolf? There can be conditions put in place in order for this transaction to gain approval. We all assumed this would gain approval with conditions that would help level the playing field for other carriers. This doesn’t make sense. This move by the DOJ seems premature if you ask me.

  • Anonymous

    How can you block the number 2 carrier from buying the number 4? This is a buyout…..not a merger. DT willingly offered to sell TMO USA to AT&T for 39B. If TMO USA was successful, they wouldn’t be up for sale. TMO USA isn’t performing well in the market….With that being said, how can the DOJ cry wolf? There can be conditions put in place in order for this transaction to gain approval. We all assumed this would gain approval with conditions that would help level the playing field for other carriers. This doesn’t make sense. This move by the DOJ seems premature if you ask me.

    • Anonymous

      GSM monopoly.

    • Anonymous

      GSM monopoly.

    • Anonymous

      GSM monopoly.

    • TMO INSIDER

      Are you related to, and/or sleeping with Philipp Humm? Sounds like someone REALLY wants some rollover minutes…

    • Anonymous

      TMO USA is successful and they are making money.  Maybe not as successful as the top 3 but more so than the bottom 15.

      I don’t think ATT will be willing to give up enough to make the deal go through.  DOJ is apparently very against it which means that ATT would have to do a LOT in order to change their mind.

      • IT Guy

        They’re making money, but not enough for DT to keep putzing around with them. They’ve invested close to $60b and are eeking out maybe $2-3b a year. While that does sound like a lot of money, businesses don’t like taking 20-30 years to get a return on their investment. Especially when they need cash to upgrade their other holdings.

        DT still wants to dump T-Mobile USA, but now the DOJ has taken away their buyer. Have fun with what happens next. It’s liable to be ugly.

    • Raully61

      “We all assumed this would gain approval with conditions that would help level the playing field for other carriers”

      You joke…right?!?

    • CRT24

      I have no idea if this is a good or a bad thing for t-mobile employees. given the fact that DT obviously does not have a strong desire to keep its US operation, so who knows what they will do if the blocking of this deal holds up. But to say that T-Mobile is not a successful operation is just not accurate…..it did after all have almost 2 billion in profit last year while Sprint lost several hundred million with almost 20 million more customers. It is not just about customer base but more how you run your operation and it is no secret that T-Mobile was late to the game with high speed data but now it can be argued that it is ahead of every carrier but Verizon in this area. If DT decides to get behind its US operation rather than look for ways out then I think T-Mobile would be in a great position to be successful going forward….but that is a big IF. The parameters of this deal were suspect from the beginning given the fact that ATT paid more than double T-Mobile’s market value and their own leaked document stated that they could roll out LTE on their own for 1/6 of the buyout cost and 2 years sooner….this was obviously not just about getting the network but eliminating competition and the DOJ saw right through this with todays decision. I just hope some good will com from this for T-Mobile employees and customers alike.

    • CRT24

      I have no idea if this is a good or a bad thing for t-mobile employees. given the fact that DT obviously does not have a strong desire to keep its US operation, so who knows what they will do if the blocking of this deal holds up. But to say that T-Mobile is not a successful operation is just not accurate…..it did after all have almost 2 billion in profit last year while Sprint lost several hundred million with almost 20 million more customers. It is not just about customer base but more how you run your operation and it is no secret that T-Mobile was late to the game with high speed data but now it can be argued that it is ahead of every carrier but Verizon in this area. If DT decides to get behind its US operation rather than look for ways out then I think T-Mobile would be in a great position to be successful going forward….but that is a big IF. The parameters of this deal were suspect from the beginning given the fact that ATT paid more than double T-Mobile’s market value and their own leaked document stated that they could roll out LTE on their own for 1/6 of the buyout cost and 2 years sooner….this was obviously not just about getting the network but eliminating competition and the DOJ saw right through this with todays decision. I just hope some good will com from this for T-Mobile employees and customers alike.

    • CRT24

      I have no idea if this is a good or a bad thing for t-mobile employees. given the fact that DT obviously does not have a strong desire to keep its US operation, so who knows what they will do if the blocking of this deal holds up. But to say that T-Mobile is not a successful operation is just not accurate…..it did after all have almost 2 billion in profit last year while Sprint lost several hundred million with almost 20 million more customers. It is not just about customer base but more how you run your operation and it is no secret that T-Mobile was late to the game with high speed data but now it can be argued that it is ahead of every carrier but Verizon in this area. If DT decides to get behind its US operation rather than look for ways out then I think T-Mobile would be in a great position to be successful going forward….but that is a big IF. The parameters of this deal were suspect from the beginning given the fact that ATT paid more than double T-Mobile’s market value and their own leaked document stated that they could roll out LTE on their own for 1/6 of the buyout cost and 2 years sooner….this was obviously not just about getting the network but eliminating competition and the DOJ saw right through this with todays decision. I just hope some good will com from this for T-Mobile employees and customers alike.

    • CRT24

      I have no idea if this is a good or a bad thing for t-mobile employees. given the fact that DT obviously does not have a strong desire to keep its US operation, so who knows what they will do if the blocking of this deal holds up. But to say that T-Mobile is not a successful operation is just not accurate…..it did after all have almost 2 billion in profit last year while Sprint lost several hundred million with almost 20 million more customers. It is not just about customer base but more how you run your operation and it is no secret that T-Mobile was late to the game with high speed data but now it can be argued that it is ahead of every carrier but Verizon in this area. If DT decides to get behind its US operation rather than look for ways out then I think T-Mobile would be in a great position to be successful going forward….but that is a big IF. The parameters of this deal were suspect from the beginning given the fact that ATT paid more than double T-Mobile’s market value and their own leaked document stated that they could roll out LTE on their own for 1/6 of the buyout cost and 2 years sooner….this was obviously not just about getting the network but eliminating competition and the DOJ saw right through this with todays decision. I just hope some good will com from this for T-Mobile employees and customers alike.

  • Anonymous

    How can you block the number 2 carrier from buying the number 4? This is a buyout…..not a merger. DT willingly offered to sell TMO USA to AT&T for 39B. If TMO USA was successful, they wouldn’t be up for sale. TMO USA isn’t performing well in the market….With that being said, how can the DOJ cry wolf? There can be conditions put in place in order for this transaction to gain approval. We all assumed this would gain approval with conditions that would help level the playing field for other carriers. This doesn’t make sense. This move by the DOJ seems premature if you ask me.

  • Anonymous

    How can you block the number 2 carrier from buying the number 4? This is a buyout…..not a merger. DT willingly offered to sell TMO USA to AT&T for 39B. If TMO USA was successful, they wouldn’t be up for sale. TMO USA isn’t performing well in the market….With that being said, how can the DOJ cry wolf? There can be conditions put in place in order for this transaction to gain approval. We all assumed this would gain approval with conditions that would help level the playing field for other carriers. This doesn’t make sense. This move by the DOJ seems premature if you ask me.

  • Anonymous

    Or DT could’ve not been cheap from the beginning and bought more spectrum……and who’s to say DT would invest that money in tmo usa? They may just take the money and run.

    • IT Guy

      I’m quite sure that’s exactly what they’ll do.

  • Anonymous

    Or DT could’ve not been cheap from the beginning and bought more spectrum……and who’s to say DT would invest that money in tmo usa? They may just take the money and run.

  • Anonymous

    Or DT could’ve not been cheap from the beginning and bought more spectrum……and who’s to say DT would invest that money in tmo usa? They may just take the money and run.

  • Anonymous

    Or DT could’ve not been cheap from the beginning and bought more spectrum……and who’s to say DT would invest that money in tmo usa? They may just take the money and run.

  • AlealeG2

    YAY! and we get to keep Carly!!

    • None

      I agree to that one..

  • AlealeG2

    YAY! and we get to keep Carly!!

  • Anonymous

    On one hand, I’m glad for the DOJ block. I see the proposed buy out as a reduction in consumer choice. But, on the other hand, T-mobile is still on shaky ground due to DT closing their wallets. Personally, it seems like a lose-lose situation to me. Best wishes, tmo customers.

  • Anonymous

    On one hand, I’m glad for the DOJ block. I see the proposed buy out as a reduction in consumer choice. But, on the other hand, T-mobile is still on shaky ground due to DT closing their wallets. Personally, it seems like a lose-lose situation to me. Best wishes, tmo customers.

  • Anonymous

    On one hand, I’m glad for the DOJ block. I see the proposed buy out as a reduction in consumer choice. But, on the other hand, T-mobile is still on shaky ground due to DT closing their wallets. Personally, it seems like a lose-lose situation to me. Best wishes, tmo customers.

  • Anonymous

    On one hand, I’m glad for the DOJ block. I see the proposed buy out as a reduction in consumer choice. But, on the other hand, T-mobile is still on shaky ground due to DT closing their wallets. Personally, it seems like a lose-lose situation to me. Best wishes, tmo customers.

  • EWIL

    Now GOOGLE please step in and buy T-MOBILE now that would be a AWESOME move right there, come on GREEN MACHINE!!!!!!!! Happy T-Mobile sales rep!!!!!!!!!

    • IT Guy

      The problem is that Google has no interest in T-Mobile.

    • IT Guy

      The problem is that Google has no interest in T-Mobile.

    • IT Guy

      The problem is that Google has no interest in T-Mobile.

      • Flashy4bb

        on top of it google does not want to upset its partners.the major carriers will maybe turn to apple and allow htc to come up with their own os on top of sense. don’t know if google will like it.

  • —-

    Pound sand AT&T!!

  • IT Guy

    Well that’s quite a move. And it does absolutely nothing for the consumer.
     
    Before anyone gets too excited, keep in mind that DT still has absolutely no desire to remain in the US market. This doesn’t change for one second that fact that they want to get rid of T-Mobile USA so they can concentrate on their European holdings and that they have no intention of sinking more money into this network.

    I would not be surprised if you start hearing talk from DT about pulling the plug and selling off what they can at this point. Do you really think after a slap in the face like this from the DOJ that they want to invest MORE money in the US?

    • Flashy4bb

      who cares? don’t you think us companies have more investments in germany and across europ? just take it easy. they will all be fine as long as you pay your bills every month.

    • Flashy4bb

      who cares? don’t you think us companies have more investments in germany and across europ? just take it easy. they will all be fine as long as you pay your bills every month.

    • Flashy4bb

      who cares? don’t you think us companies have more investments in germany and across europ? just take it easy. they will all be fine as long as you pay your bills every month.

    • Jays_on

      Tmobile is not looking like a co that wants to go out of business. They just introduced the unlimited plan deals which are amazing. Looks like they are still trying to get customers!

    • Sikety

      Why would this be bad for Dt? They are in line to get 3 billions cash and another 3 billion in spectrum.

    • Sikety

      Why would this be bad for Dt? They are in line to get 3 billions cash and another 3 billion in spectrum.

    • Anonymous

      can you do some simple math?

      let’s stipulate that dt will sell t-mobile usa.  if dt sells tmusa to another national domestic carrier, you are left with 3 national carriers.  if dt sells to another telecom, but not necessarily domestic (like telmex, telus, rogers, three, orange, telefonica, etc.) there are still 4 national carriers.  if dt sells tmusa to a business that is not a telecom, there are still 4 national carriers.

      the way that the doj is looking at this from what we know from their statement, they prefer having 4 carriers because 3 carriers is less than 4 carriers and they want more choice.  they also prefer not having one carrier have a monopoly on a particular cell technology because one carrier will influence what technology is in the phones.

      this tells me three things: there must me significant concessions on the part of deathstar in order for the merger to move forward as it stands now and i now do think that a possible merger with sprint could happen with phones being sold as world units (activate sim cards for those with tmusa accounts or activate the phone for sprint accounts) until sprint rolls out lte (if they ever do) or if that doesn’t happen i can see the doj allowing another worldwide telecom to buy out dt’s interest in t-mobile.

  • guest

    great! so now sprintell can now get what they originally wanted..to buy TMO and really force all the TMO customers to switch to cdma phones! out of pocket consumer cost ….where as with the tmo/att merger….

    • ogopogo

      How did you come to that conclusion? In the PAST, Sprint had made a play for TMO, but has since been under financial strain. They do not have the cash on hand to buy TMO. It will most likely be an outside (foreign) source that is looking to expand/establish a footprint in the US. Rumors abound around TelCel, and Rogers Canada as potential suitors.

    • ogopogo

      How did you come to that conclusion? In the PAST, Sprint had made a play for TMO, but has since been under financial strain. They do not have the cash on hand to buy TMO. It will most likely be an outside (foreign) source that is looking to expand/establish a footprint in the US. Rumors abound around TelCel, and Rogers Canada as potential suitors.

    • ogopogo

      How did you come to that conclusion? In the PAST, Sprint had made a play for TMO, but has since been under financial strain. They do not have the cash on hand to buy TMO. It will most likely be an outside (foreign) source that is looking to expand/establish a footprint in the US. Rumors abound around TelCel, and Rogers Canada as potential suitors.

  • Silk7412

    I keep telling people. This is not a done deal. But we still have a long road ahead. With the DOJ not wanting it. the FCC has gotta look at it real hard.
    Don’t stop filing at the fcc. Keep telling them how you feel!

  • tm

    good news for today.

  • TMO INSIDER

    Anyone who thinks Google or Apple is going to purchase T-Mobile lacks common sense. If that were the case, every phone would be Android or an iOS device and would leave no room for competitor’s devices. The idea behind stopping this acquisition is to continue driving competition. Besides…I don’t think the iPhone Flip is on its way anytime soon…

    • Silk7412

      Google yes. Apple No.
      Apple would not be right to buy tmobile(why think of how restricted tmo would become- forget about tethering)

      This would be a prime time for google to come in and buy tmobile( more open and we would get the best androids)

    • Silk7412

      Google yes. Apple No.
      Apple would not be right to buy tmobile(why think of how restricted tmo would become- forget about tethering)

      This would be a prime time for google to come in and buy tmobile( more open and we would get the best androids)

      • Wilma Flintstone

        You mean, we get the ONLY Androids.  If Google bought Tmobile, Verizon, At&t and Sprint would pull from Android due to it now being a competitor

        • CM Punk’s Text

          Same way Apple pulled from Verizon because of the marketing campaign?
          If it makes you money, you don’t abandon it.  Google would likely be with all the carriers because of pre-existing contracts with the carriers and manufacturers.

        • CM Punk’s Text

          Same way Apple pulled from Verizon because of the marketing campaign?
          If it makes you money, you don’t abandon it.  Google would likely be with all the carriers because of pre-existing contracts with the carriers and manufacturers.

        • CM Punk’s Text

          Same way Apple pulled from Verizon because of the marketing campaign?
          If it makes you money, you don’t abandon it.  Google would likely be with all the carriers because of pre-existing contracts with the carriers and manufacturers.

        • CM Punk’s Text

          Same way Apple pulled from Verizon because of the marketing campaign?
          If it makes you money, you don’t abandon it.  Google would likely be with all the carriers because of pre-existing contracts with the carriers and manufacturers.

        • CM Punk’s Text

          Same way Apple pulled from Verizon because of the marketing campaign?
          If it makes you money, you don’t abandon it.  Google would likely be with all the carriers because of pre-existing contracts with the carriers and manufacturers.

        • CM Punk’s Text

          Same way Apple pulled from Verizon because of the marketing campaign?
          If it makes you money, you don’t abandon it.  Google would likely be with all the carriers because of pre-existing contracts with the carriers and manufacturers.

    • Silk7412

      Google yes. Apple No.
      Apple would not be right to buy tmobile(why think of how restricted tmo would become- forget about tethering)

      This would be a prime time for google to come in and buy tmobile( more open and we would get the best androids)

    • Silk7412

      Google yes. Apple No.
      Apple would not be right to buy tmobile(why think of how restricted tmo would become- forget about tethering)

      This would be a prime time for google to come in and buy tmobile( more open and we would get the best androids)

    • http://twitter.com/phonecount StalkyTheFish

      I don’t think Google would buy any phone company outright, but I can see them investing up to a 40% stake in T-Mobile, Sprint, or both.

  • tm

    Very successful companies do buy out each other. They do it so that principals (managers etc) can make $$$. It’s mainly for individuals. In this case it’d be for stockholders of DT, and ATT of course.

  • Anonymous

    Looks like AT&T can’t buy off the politicians. Good job DOJ. Tmobile may not be competition to the big boys but they did force Verizon and AT&T to up the ante on 4g phones and expand their 4g network. Tmobile brought the 4g war to the forefront.

    • Flashy4bb

      you got it right buddy and on top of it, the rates are much more affordable. that’s what we all need.

  • Anonymous

    Looks like AT&T can’t buy off the politicians. Good job DOJ. Tmobile may not be competition to the big boys but they did force Verizon and AT&T to up the ante on 4g phones and expand their 4g network. Tmobile brought the 4g war to the forefront.

  • Anonymous

    Looks like AT&T can’t buy off the politicians. Good job DOJ. Tmobile may not be competition to the big boys but they did force Verizon and AT&T to up the ante on 4g phones and expand their 4g network. Tmobile brought the 4g war to the forefront.

  • Whylee77

    I can breath a sigh of relief!

  • Whylee77

    I can breath a sigh of relief!

  • Jazzmanmonty

    lets take a little vote.  As we all know DT wants to get rid of tmobile and i’m sure they will find one way or another to do it.  Now, would you all rather see tmobile purchased by ATT or Sprint? Honestly i hate both, but if it came down to it, i’d have to say ATT would be my choice.  Actually like someone said below, Google needs to purchase tmobile!!!!!!! 

    • http://twitter.com/PaulHarrisonPro Paul Harrison

      I’m about 90% sure Sprint buying T-Mobile would be a reverse takeover.

      Look, here’s the deal with Sprint. It’s rolled out a massive amount of infrastructure that’s non-standard and largely obsolete (the three technologies it’s using are CDMA2000/cdmaOne, iDEN, and WiMAX.) It doesn’t have “clean” spectrum. It has poor customer service. It doesn’t offer a particularly reliable system. And it needs something or someone to swoop in and fix it.

      Sprint isn’t wanting to buy T-Mobile for the customers, or for the spectrum. It wants the company, in much the same way as Apple needed NeXT (Apple bought NeXT, and NeXT took over Apple. True story: for the first few years as iCEO/CEO, Steve Jobs used a Thinkpad running OPENSTEP.) T-Mobile has its own problems, but it’s a well run company with reliable services and good customer service. Anyone in Sprint’s position would be a fool to ignore it.

      With the AT&T buyout, that would have been it. T-Mobile would no longer exist, any more than the original AT&T Wireless existed once Cingular bought them out.

      But yeah, I’d prefer G-Mobile too…

    • Anonymous

      Between AT&T and Sprint, Sprint hands down.  In fact, when it was rumored that Sprint and TMo were in talks, people supported it and backed the idea of a merger between them.

      The problem with the AT&T acquisition of T-Mobile is the fact that it’s AT&T.

      Now if Google got into the game as a cell phone carrier, I will be there day 1.

    • ItsMichaelNotMike

      I vote for Sprint.  AT&T is a lousy corporate citizen (look up AT&T Mobility v. Concepcion, as one example).

    • ItsMichaelNotMike

      I vote for Sprint.  AT&T is a lousy corporate citizen (look up AT&T Mobility v. Concepcion, as one example).

  • Jazzmanmonty

    lets take a little vote.  As we all know DT wants to get rid of tmobile and i’m sure they will find one way or another to do it.  Now, would you all rather see tmobile purchased by ATT or Sprint? Honestly i hate both, but if it came down to it, i’d have to say ATT would be my choice.  Actually like someone said below, Google needs to purchase tmobile!!!!!!! 

  • Jazzmanmonty

    lets take a little vote.  As we all know DT wants to get rid of tmobile and i’m sure they will find one way or another to do it.  Now, would you all rather see tmobile purchased by ATT or Sprint? Honestly i hate both, but if it came down to it, i’d have to say ATT would be my choice.  Actually like someone said below, Google needs to purchase tmobile!!!!!!! 

  • Anonymous

    That’s how it’s done. Removing 25% of nationwide cellphone providers would’ve definitely increased prices in services. Glad the DoJ sees that. Monopolies suck.

  • Anonymous

    Looks like I’m not hoping carriers for now. Works for me.

    Their profits might be down quarter-over-quarter but I think T-Mobile USA can still do a ton of business and is very clearly an essential competitor in the US mobile landscape. They’ll be seeing a huge amount of assets from ATT once this deal officially falls through.

    Let’s hope DT sees T-Mobile USA for the opportunity it is~~ or at least court a more appropriate buyer.

  • Jaythe01

    REOICE! THE FEDS DO SOMETHING RIGHT!!!

    Realisticall speaking there will be suitors but this is a HUGE victory for TMO US and its loyal customers. A key area is addressed, roaming/service, that has plagued TMO since its prior agreement went caput causing some folks to bail.

    At this point from my following of the situation Google may not be in a viable position to buy TMO.The Moto deal will cripple faith within its investors and bottom line for the next couple of years. So unless they have something up their sleeve, they are out.  I would love nothing more than the Goog to start delving into the market to really push the envelope on delivering data service and the Android platform.

    Possible suitors that would be next in line (in no particular order): CENTURY LINK, CABLEVISION, COMCAST, SPRINT (THINK OF ORANGE AND TMO UK ALLIANCE), ORANGE, TELEFONICA.

    I could explain everyone of these in detail and why it could happen but Id write a book. If anyone is interested drop a email…..

  • Vdawg

    I love the way the DOJ is using T-mobile’s own words in fighting this merger. Tmo said that they were the low price, high innovation and best customer service network in business so I guess the DOJ is holding them their words.

  • Vdawg

    I love the way the DOJ is using T-mobile’s own words in fighting this merger. Tmo said that they were the low price, high innovation and best customer service network in business so I guess the DOJ is holding them their words.

  • Vdawg

    I love the way the DOJ is using T-mobile’s own words in fighting this merger. Tmo said that they were the low price, high innovation and best customer service network in business so I guess the DOJ is holding them their words.

  • Cmfn904@gmail.com

    Maybe $3 billion that DT receives for failed transaction would be enough to keep T-Mobile in USA.

    • Jasonbiggs

      They also get complete AT&T leave coverage for roaming as well as all of AT&T’s AWS spectrum for the deal failing.  This leaves DT in a better position to sell the company to a another Euro cell giant.  AT&T will have to give MAJOR stuff to DK (Tmo USA). 

      I don’t think AT&T every expected the deal to fail or they wouldn’t have put so much in the contract if it failed to pass.

    • IT Guy

      Unfortunately that money goes to DT not T-Mobile. DT still wants out, and I think that the $3b is just a buffer against them selling out at a lower price than the att offer.

    • IT Guy

      Unfortunately that money goes to DT not T-Mobile. DT still wants out, and I think that the $3b is just a buffer against them selling out at a lower price than the att offer.

    • IT Guy

      Unfortunately that money goes to DT not T-Mobile. DT still wants out, and I think that the $3b is just a buffer against them selling out at a lower price than the att offer.

    • IT Guy

      Unfortunately that money goes to DT not T-Mobile. DT still wants out, and I think that the $3b is just a buffer against them selling out at a lower price than the att offer.

    • IT Guy

      Unfortunately that money goes to DT not T-Mobile. DT still wants out, and I think that the $3b is just a buffer against them selling out at a lower price than the att offer.

  • Ben

    “Moreover, the department said that AT&T could obtain substantially the same network enhancements that it claims will come from the transaction if it simply invested in its own network without eliminating a close competitor.” – EPIC!!!!!!! BEST QUoTE OF ALL!!!!! :)

    Take that! AT&T liars!!! :) yay for the justice department!

  • Steve

    I agree that the merger would not be good for consumers.  What happens next?  The Obama Admin is going to be tarred by the GOP as anti-business with this one.  

  • Steve

    I agree that the merger would not be good for consumers.  What happens next?  The Obama Admin is going to be tarred by the GOP as anti-business with this one.  

    • Anonymous

      The Obama Admin was anti-business WAY before this ever happened chief.  This might actually be a good thing for Obama’s administration for a change…. You’re totally backwards on this one.

    • Anonymous

      The Obama Admin was anti-business WAY before this ever happened chief.  This might actually be a good thing for Obama’s administration for a change…. You’re totally backwards on this one.

  • NBIQ

    This is good news, totally!

    But, small comment from the peanut gallery:
    Too bad the DOJ didn’t step up to the plate when Exxon and Mobil ha their unnecessary ”merger”. 
    I suppose the Big Oil industry had better lobbyists….

  • NBIQ

    This is good news, totally!

    But, small comment from the peanut gallery:
    Too bad the DOJ didn’t step up to the plate when Exxon and Mobil ha their unnecessary ”merger”. 
    I suppose the Big Oil industry had better lobbyists….

    • Guest

      That was under a different Administration – not Obama.

    • Guest

      That was under a different Administration – not Obama.

    • Guest

      That was under a different Administration – not Obama.

  • NBIQ

    This is good news, totally!

    But, small comment from the peanut gallery:
    Too bad the DOJ didn’t step up to the plate when Exxon and Mobil ha their unnecessary ”merger”. 
    I suppose the Big Oil industry had better lobbyists….

  • NBIQ

    This is good news, totally!

    But, small comment from the peanut gallery:
    Too bad the DOJ didn’t step up to the plate when Exxon and Mobil ha their unnecessary ”merger”. 
    I suppose the Big Oil industry had better lobbyists….

  • Sandles

    What’s funny is how everyone complains how terrible T-Mobile has become since ATT first proposed the acquisition, however, if ATT is denied the opportunity then T-Mobile will be much worse. T-Mobile was already a struggling company before this all happened and they will surely be struggling if they are declined. T-Mobile won’t be looking to reclaim itself as their own company. DT will be looking to sell them to the next highest bidder and most likely this won’t be a good thing for customers.  The company could be split up and who knows how that would end up. I guess time will tell. Until then, enjoy the roller coaster ride!

    • Jeffreygreen1315

      Give me the rollercoaster ride as long as it doesn’t involve AT&T

      • Guest

        I soooo agree.  Anybody but AT&T.  Been there.  They are not nice people. 

    • Jeffreygreen1315

      Give me the rollercoaster ride as long as it doesn’t involve AT&T

    • Martinspr

      Any of the big European Telecoms buying Tmobile USA is better than AT&T buying it.  It will leave 4 US Cell phone carriers.  Trust me…DK will find a buyer in Europe or South America.

    • Martinspr

      Any of the big European Telecoms buying Tmobile USA is better than AT&T buying it.  It will leave 4 US Cell phone carriers.  Trust me…DK will find a buyer in Europe or South America.

    • Martinspr

      Any of the big European Telecoms buying Tmobile USA is better than AT&T buying it.  It will leave 4 US Cell phone carriers.  Trust me…DK will find a buyer in Europe or South America.

  • Sandles

    What’s funny is how everyone complains how terrible T-Mobile has become since ATT first proposed the acquisition, however, if ATT is denied the opportunity then T-Mobile will be much worse. T-Mobile was already a struggling company before this all happened and they will surely be struggling if they are declined. T-Mobile won’t be looking to reclaim itself as their own company. DT will be looking to sell them to the next highest bidder and most likely this won’t be a good thing for customers.  The company could be split up and who knows how that would end up. I guess time will tell. Until then, enjoy the roller coaster ride!

  • Sandles

    What’s funny is how everyone complains how terrible T-Mobile has become since ATT first proposed the acquisition, however, if ATT is denied the opportunity then T-Mobile will be much worse. T-Mobile was already a struggling company before this all happened and they will surely be struggling if they are declined. T-Mobile won’t be looking to reclaim itself as their own company. DT will be looking to sell them to the next highest bidder and most likely this won’t be a good thing for customers.  The company could be split up and who knows how that would end up. I guess time will tell. Until then, enjoy the roller coaster ride!

  • Sandles

    What’s funny is how everyone complains how terrible T-Mobile has become since ATT first proposed the acquisition, however, if ATT is denied the opportunity then T-Mobile will be much worse. T-Mobile was already a struggling company before this all happened and they will surely be struggling if they are declined. T-Mobile won’t be looking to reclaim itself as their own company. DT will be looking to sell them to the next highest bidder and most likely this won’t be a good thing for customers.  The company could be split up and who knows how that would end up. I guess time will tell. Until then, enjoy the roller coaster ride!

  • ItsMichaelNotMike

    Some great comments in here, but many people are confused about what’s going on with the DOJ lawsuit (what it means).  I am working on another matter, but will weigh in on this later.

    For now, as much as many people hate Sprint, you all should be kissing Dan Hesse’s feet.  He pretty much has led the fight in opposing this deal (he even has a war room dedicated to this fight) and the court filing indicates the DOJ “adopted” Sprint’s arguments. (Always flattering when someone does that.)

    Knowing the DOJ had the biggest foot to squish AT&T’s acquisition bug, Hesse has been pushing the DOJ to file an antitrust suit.  Hesse was so sure his prodding the DOJ would pay off that when in July 2011 DOJ antitrust chief Christine Varney announced her August departure to Cravath Swaine (a white shoe law firm), Hesse went on record that he had confidence the antitrust division and Varney’s successor would block the deal. Looks like Hesse was right.  Hesse must be absolutely giddy right now.

    By the way, the government is NOT saying T-Mobile can’t do a deal, it’s saying that AT&T can’t be the buyer.

    This is devastating news for T-Mobile (DT) because DT really, really, really, really wanted that $39 billion.  No one else is going to offer that kind of money.  T-Mobile is realistically worth about $12 billion to $15 billion.

    The AT&T deal was going to save some people at DT from being fired.  I expect to see their heads rolling now. Don’t feel any sympathy for them.  They were basically willing to sheetcan T-Mobile employees and screw over T-Mobile customers simply to save their jobs and hand a windfall to DT shareholders.

    • Mmmaxheadroom

      So what you are saying Michael and correct me if I am wrong. Hesse has better conections with this DOJ staff than at&t? Or perhaps this DOJ staff is less willing to roll over for the evil empire? Either way it doesn’t look good for tmobile customers because DT could simply limp by with a just good enough attitude and one way or another screw the consumer with poor service. Problem is we won’t see or here anything from tmobile until the end of the merger one way or the other.

    • CM Punk’s Text

      So, what you’re saying is that T-Mobile will make 1/4-1/5 as much as what they’re worth if they’re not bought out?

      No way is that correct.  In all honesty, this may be a good financial move by DT, especially if they were pushing for this not to go through the whole time.  Not saying that was the case, but with the corporate world, you never know what their true intentions are.

      If T-Mobile gets that 3B+ for the acquisition falling through, you have to figure that’s more profit than they would have expected from the fallout of customers in the 6-9 months since the news and that means they can be incredibly more aggressive with marketing, and, most importantly, building infrastructure!!!

    • CM Punk’s Text

      So, what you’re saying is that T-Mobile will make 1/4-1/5 as much as what they’re worth if they’re not bought out?

      No way is that correct.  In all honesty, this may be a good financial move by DT, especially if they were pushing for this not to go through the whole time.  Not saying that was the case, but with the corporate world, you never know what their true intentions are.

      If T-Mobile gets that 3B+ for the acquisition falling through, you have to figure that’s more profit than they would have expected from the fallout of customers in the 6-9 months since the news and that means they can be incredibly more aggressive with marketing, and, most importantly, building infrastructure!!!

    • CM Punk’s Text

      So, what you’re saying is that T-Mobile will make 1/4-1/5 as much as what they’re worth if they’re not bought out?

      No way is that correct.  In all honesty, this may be a good financial move by DT, especially if they were pushing for this not to go through the whole time.  Not saying that was the case, but with the corporate world, you never know what their true intentions are.

      If T-Mobile gets that 3B+ for the acquisition falling through, you have to figure that’s more profit than they would have expected from the fallout of customers in the 6-9 months since the news and that means they can be incredibly more aggressive with marketing, and, most importantly, building infrastructure!!!

      • Gordo G

        You Sir I believe have it pinpointed to a T. I think that it is highly likely they don’t want the merger to happen in the first place..DTE is a huge company running a massive profitable wing in the US. The only reasoning they give for wanting to get out of the US is hmm what? They have not given any real reason that I have gathered other than they don’t have an interest in the US market anymore and want to sell? It doesn’t add up? Why would a profitable company all of the sudden want to get out of a market that is sustaining itself? I think this could have been a ploy by DTE all along to re position there stance and make a name for themselves.The majority of Americans have not payed attention to this possible acquisition until today. This issue has now been clearly blasted to the mainstream masses and what is inevitably a huge blow for AT&T was dealt. Whatever the result of the merger their brand has been tarnished by the DOJ’s public assault of this plan. I think that DTE more than likely saw this sort of scenario happening an thus hedged themselves properly to win either way. I am not sure how many companies get to profit from a proposed sale even if the deal does not happen. If this deal gets shot down and T Mobil stays they would be in a prime position to turn the ship around quickly esp if they get the iphone. The newly acquired spectrum and cash coupled with their current price points could be the shot in the arm they have sorely needed to take a real stance in the market.. If they land the iphone with 4g or (hspa+) speeds, customers would flock and the mass exodus would cease and T Mobil could sustain a network build out to accommodate the higher network demand. What a perfect world.. It would be nice if they were plotting this scenario all along. If Apple knew T mobil was going to remain on its own than they would surely have no reason to hold out the iphone from the carrier. Same goes for the Nexus line.

    • CM Punk’s Text

      So, what you’re saying is that T-Mobile will make 1/4-1/5 as much as what they’re worth if they’re not bought out?

      No way is that correct.  In all honesty, this may be a good financial move by DT, especially if they were pushing for this not to go through the whole time.  Not saying that was the case, but with the corporate world, you never know what their true intentions are.

      If T-Mobile gets that 3B+ for the acquisition falling through, you have to figure that’s more profit than they would have expected from the fallout of customers in the 6-9 months since the news and that means they can be incredibly more aggressive with marketing, and, most importantly, building infrastructure!!!

    • Guest

      The DOJ could settle. Don’t forget that. This is not the first time the DOJ has sued to prevent a merger and the merge still took place… 

      See: Comcast – NBC merge.

    • Guest

      The DOJ could settle. Don’t forget that. This is not the first time the DOJ has sued to prevent a merger and the merge still took place… 

      See: Comcast – NBC merge.