(Updated With T-Mobile USA Statement To Employees) Deutsche Telekom Responds To Department Of Justice Lawsuit

Not to be outdone by AT&T, Sprint and FCC responses Deutsche Telekom has just released a short statement regarding the Department of Justice announcement earlier this morning. Executive Vice President of Deutsche Telekom Philipp Schindera had this to say:

On August 31, 2011, the United States Department of Justice (DOJ) informed Deutsche Telekom that it will file a complaint in the U.S. District Court for the District of Columbia seeking a permanent injunction blocking the proposed stock purchase agreement between AT&T and Deutsche Telekom under which AT&T will acquire T-Mobile USA from Deutsche Telekom.

Deutsche Telekom is very disappointed by the DOJ’s action, and will join AT&T in defending the contemplated merger against the complaint in court. DOJ failed to acknowledge the robust competition in the U.S. wireless telecommunications industry and the tremendous efficiencies associated with the proposed transaction, which would lead to significant customer, shareholder, and public benefits. We appreciate the DOJ’s willingness to discuss possible remedies to address the competitive concerns.

About the Transaction: On March 20, 2011, Deutsche Telekom entered into a merger agreement with AT&T pursuant to which under AT&T will purchase 100% ownership in T-Mobile USA from Deutsche Telekom in a cash-and-stock transaction valued at approximately $39 billion.  Deutsche Telekom will take an approximate 8% stake in US telecommunication company AT&T.

Updated with T-Mobile USA statement to employees:

Colleagues,

By now you have heard the news that the Department of Justice (DOJ) has filed a lawsuit to block the AT&T and T-Mobile merger in U.S. District Court.  We were surprised by this sudden announcement, and  DT will join AT&T in challenging the DOJ’s case in court.

DT and AT&T believe the DOJ has failed to acknowledge the significant consumer benefits of this deal.  DT remains convinced that bringing together these two world-class businesses would create significant benefits for customers and the country.

While this action is addressed in Federal court, the best thing you can do is continue to focus on strengthening our business and offering world class customer service.

Customers have many reasons to choose T-Mobile—from the great value we offer, to compelling devices running on America’s largest 4G network and our leadership in customer service and satisfaction. Working as a team, we will continue to prove there’s no better time to be a T-Mobile customer.

Let’s build upon the positive momentum we’ve created in recent months.  We have a great team here at T-Mobile, and I know you will join me in ensuring that, no matter what, ‘I Am T-Mobile Count on Me.’

I promise to make more information available to you in the coming days and weeks on OneVoice and through your leaders as this news develops.

Thank you for your ongoing commitment and support.

Regards,
Philipp Humm
CEO & President
T-Mobile USA

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  • Bluegreen123

    Awwwww…poor innocent DT feels blindsided and betrayed by the DOJ ‘s decision after things looked so promising? DT’s a little bit butt-hurt and now they want us to know that they REALLY mean business against all of these horibble entities (Sprint, various politicians and officials, FCC, and now DOJ), ladies and gents. DT and ATT are going to use T-Mobile to save our country!
    Gee, looks like the DOJ has taken a line right from DT’s own business model. I will admit that yes, I have of my own masochistic volition continued to subject myself to Big Daddy DT and the T-Mob and the reactive/manic indecisions they jointly created/destroyed. However, in my defense I will also admit that I’m a whore for mediocre wages and decent American insurance benefits for myself and my family – I’ll do pretty much whatever it takes to get the job done like a good little girl, ya know? Ahhh… but I digress, this is not the point.
    I guess what I really mean to say I should just say from the heart:
    I hope the Nazi… err, I mean our buddy Humm and his band of minions and puppets burn their current and future careers with this deal. Here’s hoping, anyway…cheers!

    • Setzer715

      Humm=Nazi,,,,hang on,,,,,trying get,,,,up,,,,of the floor,,,,from laughing to hard!!!!

  • Jimbo

    Hey does anyone remember Tmobile’s shareholders conference back in April . They came up with a map with almost 85% of coverage expansion covering almost 99% population with 3G/4G coverage. ??? !! ???
    I feel in love with Tmobile all over again that day. Until At&t came in and raped it.

    • Kerry

      Exactly… I remember reading that and feeling like T-Mobile had a plan, a direction, and was going to make life for its subscribers better.  The AT&T announcement really took a toll on my faith in T-Mobile and its ability to move forward

    • Kerry

      Exactly… I remember reading that and feeling like T-Mobile had a plan, a direction, and was going to make life for its subscribers better.  The AT&T announcement really took a toll on my faith in T-Mobile and its ability to move forward

  • http://twitter.com/SocalFrank1 Frank Alvarez

    I’ve been a T-Mobile customer and fan since they rolled out to California. Over the past year I have noticed worsening service and customer service. 
    I don’t want to see the merger because in spite of the decline, it’s still a great value service. 
    I hope MetroPCS can step up and buy T-Mobile.

    • IT Guy

      I don’t think Metro PCS could afford it?

      • Anonymous

        Most certainly not, maybe if T-Mobile broke off and offered an IPO, although I’m not sure it would raise a sufficient amount of money.  I would love for Google to purchase T-Mobile actually.  

      • Anonymous

        Most certainly not, maybe if T-Mobile broke off and offered an IPO, although I’m not sure it would raise a sufficient amount of money.  I would love for Google to purchase T-Mobile actually.  

  • Turd Fergison

    DT should allow T-mobile USA to be its own company and sever their ties I am sure that T-mobile USA would do fine with out DT

    • MIKEEEEE

      voicestream?

    • MIKEEEEE

      voicestream?

    • Nk

      It would seem like a good idea but, I don’t think T-Mo USA could survive alone. The only reason they are alive today is due in part to DT’s cash infusions over the years.

    • Nk

      It would seem like a good idea but, I don’t think T-Mo USA could survive alone. The only reason they are alive today is due in part to DT’s cash infusions over the years.

  • Moe

    It sure sounds like this deal is dead and it sounds like TMO is dead as well. The uncertainty about the ATT deal, changes in the TMO rate plan, DT’s pulling out of infrastructure investments, reductions in the work force and now the DOJ filing all contribute to an end of TMO. Do any of the boobs at ATT, TMO and DT really know what they are doing? I thinks they have it all worked out. If it’s competition or lack there of that is the big concern, just wait a week or two and we will hear that TMO will be closing it’s doors. Then ATT can just in and buy the the network minus the customers and headaches. After all ATT just wants the network. Please step up Google, metro pcs or other provider.

    • derek 21

      lmao metro not buying anything haha 

  • Moe

    It sure sounds like this deal is dead and it sounds like TMO is dead as well. The uncertainty about the ATT deal, changes in the TMO rate plan, DT’s pulling out of infrastructure investments, reductions in the work force and now the DOJ filing all contribute to an end of TMO. Do any of the boobs at ATT, TMO and DT really know what they are doing? I thinks they have it all worked out. If it’s competition or lack there of that is the big concern, just wait a week or two and we will hear that TMO will be closing it’s doors. Then ATT can just in and buy the the network minus the customers and headaches. After all ATT just wants the network. Please step up Google, metro pcs or other provider.

  • MT3GS

    So… I thought over about who could buy T-Mobile and what kind of probs they might run into buying it… So far my Top 3 are a no go…

    * Vodafone (Would probably run into probs since they already own 45% of VZW and dumping VZW and buying T-Mo is prob too much of a problem)

    * Google (Don’t think they have the swag, plus they’re busy exorcising Motorola)

    * Sprint (Can’t merge iDEN and CDMA business still after 6 years – They will have CDMA/iDEN/GSM/WiMax and now LTE – Srsly!!??!! Plus Antitrust)

    * Claro (America Movil – OK with being a cheap MVNO and proud of it, if Mr. Helu wanted a real entry into the US market they would have done it by now – and that man has the cash to buy T-Mo for 2x the price)

    * Tim/Orange/Telefonica (Only remaining operators besides Vodafone that are operating businesses outside their native countries), I cannot believe all of them have stayed quiet so far)

    If I had a choice, Vodafone would sell off VZW and let Verizon think happy happy thoughts forever, buy T-Mobile and lead a happy life. My family overseas has them and has had nothing but awesome things to say about the quality of their service – in Italy and in England…

    So what do you guys think?

  • MT3GS

    So… I thought over about who could buy T-Mobile and what kind of probs they might run into buying it… So far my Top 3 are a no go…

    * Vodafone (Would probably run into probs since they already own 45% of VZW and dumping VZW and buying T-Mo is prob too much of a problem)

    * Google (Don’t think they have the swag, plus they’re busy exorcising Motorola)

    * Sprint (Can’t merge iDEN and CDMA business still after 6 years – They will have CDMA/iDEN/GSM/WiMax and now LTE – Srsly!!??!! Plus Antitrust)

    * Claro (America Movil – OK with being a cheap MVNO and proud of it, if Mr. Helu wanted a real entry into the US market they would have done it by now – and that man has the cash to buy T-Mo for 2x the price)

    * Tim/Orange/Telefonica (Only remaining operators besides Vodafone that are operating businesses outside their native countries), I cannot believe all of them have stayed quiet so far)

    If I had a choice, Vodafone would sell off VZW and let Verizon think happy happy thoughts forever, buy T-Mobile and lead a happy life. My family overseas has them and has had nothing but awesome things to say about the quality of their service – in Italy and in England…

    So what do you guys think?

    • Nk

      Vodafone buying T-Mobile is the way to go IMO. T’s network is compatible to Voda’s worldwide networks. The money Voda would get from selling their 45% to Verizon Communications would certainly help buy T-Mo and/or improve the network.

  • Anonymous

    Amaziing , i cant believe this!! me and my sister just got two i-pads for $42.77 each and a $50 amazon card for $9. the stores want to keep this a secret and they dont tell you. go here, bidsbug.com //

  • Guest

    “DOJ failed to acknowledge the robust competition in the U.S. wireless telecommunications industry and the tremendous efficiencies associated with the proposed transaction, which would lead to significant customer, shareholder, and public benefits.”

    Is the PR department at Deutsche Telekom smoking something, or are they under the impression that consumers are gullible sheep? When has elimination of a competitor EVER been beneficial to the public, let alone foster “robust competition”???

    • GregP74

      This is borrowed from a post in this thread:

      Morgan Reed, executive director of the trade group, Association for Competitive Technology, said AT&T has at least one key fact on its side: Deutsche Telekom has said it does not plan to continue to invest in upgrading the T-Mobile network to deliver faster wireless. That means, “T-Mobile is not a competitor anymore,” Reed said.”T-Mobile has already stepped away from the table,” Reed noted. “We’re at three nationwide wireless carriers no matter what.”

      • Crey23

        Spot on….Many people fail to realize that no matter what DT has walked away from the table.  At this point we are sitting high on a three legged chair….it’s just a matter of time before we fall.

        TMO USA is no longer, no matter which way you slice it.  I like the idea of a cable company buying it out…maybe a comcast so that they can poise themselves similar to VZ with , cable, data, voip, and wireless…. essentially moving Tmo into 3rd spot if you consider that VZ and AT&T have adopted similar structures.  Hopefully we might benefit from nice bundles!!!! 

  • Drazyw1

    DT is upset because they will be out the 39 billion they will use outside the united states, and the 8% share in a US company. That’s all they care about. 

  • Drazyw1

    DT is upset because they will be out the 39 billion they will use outside the united states, and the 8% share in a US company. That’s all they care about. 

  • Dewey Cox

    Sue Nokes helped lead us down this path in the first place. Her only concern was customer service. She had no vision as far as network and devices go. Why not bring back Dotson and Bonita too?
    This company has NEVER had strong leadership

  • Dewey Cox

    Great news but what now?????

    Who is our suitor now? I hope Dotson is having a nice “retirement”. He led us down this path.

    • ConspiracyTheory

      NO, Dotson saw the writing on the walls and got the hell out of there…. Smart move by Dotson!

      • Dewey Cox

        He did not leave on his own.

  • Dewey Cox

    Great news but what now?????

    Who is our suitor now? I hope Dotson is having a nice “retirement”. He led us down this path.

  • Paul N Mavini

    Google probably can’t own a handset mfr and a telco, though I would argue they could keep the Motorola patents and sell off the handset manufacturing.  Microsoft might be an interesting T-Mo suitor since they don’t have the handset baggage.

  • Paul N Mavini

    Google probably can’t own a handset mfr and a telco, though I would argue they could keep the Motorola patents and sell off the handset manufacturing.  Microsoft might be an interesting T-Mo suitor since they don’t have the handset baggage.

  • Paul N Mavini

    Google probably can’t own a handset mfr and a telco, though I would argue they could keep the Motorola patents and sell off the handset manufacturing.  Microsoft might be an interesting T-Mo suitor since they don’t have the handset baggage.

  • Paul N Mavini

    Google probably can’t own a handset mfr and a telco, though I would argue they could keep the Motorola patents and sell off the handset manufacturing.  Microsoft might be an interesting T-Mo suitor since they don’t have the handset baggage.

    • Dewey Cox

      I don’t see any company that has an OS of their own being able to buy a telco.

      • Paul N Mavini

        MS’s puny market share might keep that from being a major obstacle, but maybe you are right.

      • Paul N Mavini

        MS’s puny market share might keep that from being a major obstacle, but maybe you are right.

  • Paul N Mavini

    Google probably can’t own a handset mfr and a telco, though I would argue they could keep the Motorola patents and sell off the handset manufacturing.  Microsoft might be an interesting T-Mo suitor since they don’t have the handset baggage.

  • Paul N Mavini

    Google probably can’t own a handset mfr and a telco, though I would argue they could keep the Motorola patents and sell off the handset manufacturing.  Microsoft might be an interesting T-Mo suitor since they don’t have the handset baggage.

  • Paul N Mavini

    Google probably can’t own a handset mfr and a telco, though I would argue they could keep the Motorola patents and sell off the handset manufacturing.  Microsoft might be an interesting T-Mo suitor since they don’t have the handset baggage.

  • NBIQ

    HANG IN THERE TMOBILE.

    We’d much prefer to put up with a few network glitches (from time to time) than have to put up with an arrogant monster company and fewer choices. I want TMO USA to succeed, and it can.

    TMO USA is the best looking party in this dust-up.. DT and AT&T don’t look so smart right now. They have a chance to stand up and look after their customers. 

    (And don’t forget to provide FREE TEXTING for everyone! This would move the needle, and if they can stomach some short term revenue loss, TMO USA could see be a bug factor in moving the industry to free texting and snatching up lots of loyal customers.)

    Free business advice from a forum member!

    • NBIQ

      Free Texting on every plan, would probably work best with contracts, not pre-paid.

      any thoughts?

  • NBIQ

    HANG IN THERE TMOBILE.

    We’d much prefer to put up with a few network glitches (from time to time) than have to put up with an arrogant monster company and fewer choices. I want TMO USA to succeed, and it can.

    TMO USA is the best looking party in this dust-up.. DT and AT&T don’t look so smart right now. They have a chance to stand up and look after their customers. 

    (And don’t forget to provide FREE TEXTING for everyone! This would move the needle, and if they can stomach some short term revenue loss, TMO USA could see be a bug factor in moving the industry to free texting and snatching up lots of loyal customers.)

    Free business advice from a forum member!

  • Rsolomon8

    Google owning a telecom as well as a Handset manufacturing company to me is a wonderful example of diversification (Side note, Lose the motoblur PLEASE) Sounds good to me. My two favorite Tech companies, and NO American Telegraph & Trouble

  • Mel

    Tmobile YOU CAN DO It!!!!!!!!!!!!!!!!! well. the CUSTOMERS CAN, because the  owners Want to sell….
    so cmon people WE are the ones playing the key role in this, support your carrier, support your android, support Tmobile.

  • Nk

    T-Mobile —–> G-Mobile.

  • Smashnbang

    Blow it out your ass Phillip Humm. You suck at life.

  • Smashnbang

    Blow it out your ass Phillip Humm. You suck at life.

    • Anonymous

      Now… Now… Don’t be so harsh. He’s only doing what he was put there to do. I think by the time he took control, he had probably already been given his orders. Just like the rest of us. He’s doing what his boss(es) tell him

    • Anonymous

      Now… Now… Don’t be so harsh. He’s only doing what he was put there to do. I think by the time he took control, he had probably already been given his orders. Just like the rest of us. He’s doing what his boss(es) tell him

    • Anonymous

      Now… Now… Don’t be so harsh. He’s only doing what he was put there to do. I think by the time he took control, he had probably already been given his orders. Just like the rest of us. He’s doing what his boss(es) tell him

  • ConspiracyTheory

    Let me tell you the real story!  Tmobile has gotten real shady and EVIL!  The firing sprees have gotten out of control!  They are on the rampage firing tenured reps and supervisors for the smallest things that would normally result in a verbal warning, some ppl have been fired for things that arent even an issue!  we all know the real reasons here is to either avoid paying severence to tenured employees or to deflate the operational costs by eliminating people!  This is not where the evil stops though, it gets worse!   T-Mobile fights all unemployment benefits!  Leaving people in a bad economy HOMELESS!  yes HOMELESS!     Do not be surprised when you start reading about thousands of lawsuits against t-mobile for their unconscionable acts of wrongful termination!  The numbers will speak VOLUMES!

    • Anonymous

      Firing sprees is a very accurate description. It has been well understood that tenure is a big factor as well. In this case seniority is not a good thing. The more seniority you have, the bigger the bullseye you have on your back. That in and of itself is not entirely wrong. It in fact is Biblical in that to whom much is given, much is expected. But the way it is being handled is not consistent. Some people have repeated warnings for blatant violations while others are quickly gone for insignificant judgement calls.

  • ConspiracyTheory

    T-Mobile also discriminates against disabled employees!  This has been witnessed by many. 

  • http://www.facebook.com/smartinsr Shelby Martin

    ConspiracyTheory- I have a pending law suit against them not and we been back and forth! That company is evil! And when u read the above statement it say nothing about caring for its employees all it say is keep selling while we fight for the deal to still go through! 

  • Eric

    “..the proposed transaction, which would lead to significant customer, shareholder, and public benefits.”

    All I read was “monopolizing the GSM spectrum market in the U.S.; we dont care because we’ll charge whatever we want to the consumer.”

  • Eric

    “..the proposed transaction, which would lead to significant customer, shareholder, and public benefits.”

    All I read was “monopolizing the GSM spectrum market in the U.S.; we dont care because we’ll charge whatever we want to the consumer.”

  • Huhhh

    this is crap as i am a employee and i feel my leaders have thrown in the towel while i do all the work…. im done.