AT&T Files Motions To Dimiss Sprint, C Spire Lawsuits, Puerto Rico Backs Department Of Justice

AT&T is up to its old tricks as it has asked a federal judge to throw out the lawsuit Cellular South has filed in order to block the proposed takeover of AT&T. AT&T argues that Cellular South’s concerns are more about blocking competition and pursuing their own interests than acting in good faith for their customers. AT&T is making the very same argument with regards to Sprint’s lawsuit attempting to block the merger claiming Sprint is also acting in their own self-interest and not those of their customer base.

AT&T revealed in their motion that Cellular South, now known as C Spire pursued private negotiations prior to their lawsuit filing where the regional carrier would support the merger if “AT&T would agree not to engage in facilities-based competition in Mississippi.” AT&T went on to further state “This inappropriate proposal confirms that what Cellular South fears is competition, not lack of competition.”

Sprint released their own statement:

“There’s nothing surprising about AT&T’s motion to dismiss this litigation. AT&T promised to take this step more than two weeks ago but only filed this motion today because it was ordered to do so by the Court.  AT&T’s motion is without merit, and Sprint will respond to it next Friday and continue to cooperate with Judge Huvelle as she seeks to efficiently try both this case and the Justice Department’s case against AT&T.”

In related news the Secretary of Justice for Puerto Rico released a statement supporting the Department of Justice’s action to block the proposed merger:

Through this action, the Department of Justice (DOJ) of Puerto Rico seeks to ensure safeguarding the benefit of a competitive market to Puerto Rican consumers. As the transaction is proposed, it would result in a substantial lessening of competition in the relevant geographic market for mobile telecommunications services, both in Puerto Rico, and the rest of the nation.

Bloomberg BusinessWeek

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  • http://cosmicbreeze.tumblr.com/ DtheArtist

    *yawn* same crap, different day. Tired of AT&T. I’m waiting on that Radar to drop thou. I can’t wait for the rest of the WP7 Mango devices to drop too. I think WP7+ is a great option for smartphone users.

    • http://www.facebook.com/people/Bassam-El-azzeh/1057698400 Bassam El-azzeh

      Thats the truth.

  • Anonymous

    This is now an all-out war

    • Anonymous

      oh its going to get pretty nasty.  At least we know some people actually care.

    • Anonymous

      oh its going to get pretty nasty.  At least we know some people actually care.

  • Lilmicky3

    lets get this war started..  I CANT WAIT TILL ATT WINS THIS BATTLE.. PEOPLE DONT REALIZE THAT IF THE MERGER DOESNT GO THROUGH.. TMOBILE IS DOOMED !!!  I WOULD LIKE THIS MERGER TO BE APPROVED NOW !!!

    • Anonymous

      not necessarily. you forget the payout to tmo, the roaming agreements, the potential of another buyer, etc. The funny thing is you are saying “Tmo is doomed if this buyout doesnt go through” but thats exactly what this ‘merger’ will do….is eliminate tmo. 

      • Mopar6464

        And you forgot that AT&T is already on their way out of that payout through crafty legal paperwork they included in the buy-out agreement.

        • Anonymous

          its still anyones game on that. most of the hype around the “get out of the buyout” was just speculation from bloggers like phone dog, tmonews, and other places. Its like when people speculated the verizon iphone might have lte or that sprint was buying out tmo, or all the millions of other rumors you hear. There are are also similar speculations to the idea that if the merger fails,tmo and att will enter into an unofficial merger state and share networks. 

        • Anonymous

          its still anyones game on that. most of the hype around the “get out of the buyout” was just speculation from bloggers like phone dog, tmonews, and other places. Its like when people speculated the verizon iphone might have lte or that sprint was buying out tmo, or all the millions of other rumors you hear. There are are also similar speculations to the idea that if the merger fails,tmo and att will enter into an unofficial merger state and share networks. 

      • JBLMOBILEG1

        I agree with you tbebigdaddybear…. besides with the Tmobile remodels on nearly 400 stores that has or will be taking place… I have a feeling Tmobile isn’t going anywhere anytime soon if this sale is blocked. Like I said before why waste all the money, not to mention time, when there is a good chance you won’t exist in a year. I also highly doubt At&t will start to use the magenta colors neither. DOJ block this so we can move on to more important things in this world and so Tmobile can florish and continue to offer its top notch customer service and killer phones that they finally are starting to bring in since this buyout was mentioned.

      • n900mixalot

        doomed if ya do, doomed if ya don’t.

        “thebigdaddybear” eh?     -.-

    • Anonymous

      not necessarily. you forget the payout to tmo, the roaming agreements, the potential of another buyer, etc. The funny thing is you are saying “Tmo is doomed if this buyout doesnt go through” but thats exactly what this ‘merger’ will do….is eliminate tmo. 

  • Anonymous

    the doj, sprint and cell south do have similar “arguments” against att…seems kind of redundant to have numerous suits with the same cause….if att wins the doj suit, it would also win with the other suits. same goes if they lose in court against the doj. maybe the judge shouldve combined the suits? the dojs purpose is to maintain fairness and competitivness in the marketplace. sprint and cs are in this for their own benefit….it reminds me of apples suits against virtually every android oem and their effort to block samsungs devices. theyre not suing for the right reason.

  • Angarma1

    Hope, the blocking works,although I’m already out of T-mobile, escaped AT&T grasp!!! T-mo people in Puerto Rico, jump the boat before it’s too late!!! AT&T is the biggest in PR, trying to establish a near monopoly on the island.

    • tgb

      YOU ARE SO RIGHT!!!! STOP THE TELECOMMUNICATIONS MONOPOLY NOW.

    • tgb

      YOU ARE SO RIGHT!!!! STOP THE TELECOMMUNICATIONS MONOPOLY NOW.

  • Davidmg_13

    Is this company willing distorting information and filing suits filled with lies in order to get their own way or are they really that mis-informed, and why do we tolerate it why do people still do business with a company like this… I’m really tired of this, I’m just venting I guess, but I won’t do business with them any more. 2 cents

  • Respawn

    FYI, David, your link says “proposed takeover of AT&T” when it should be “proposed takeover of T-Mobile” … but hey, we can always dream can’t we? :P

  • Respawn

    FYI, David, your link says “proposed takeover of AT&T” when it should be “proposed takeover of T-Mobile” … but hey, we can always dream can’t we? :P

  • BP

    It is hilarious how Puerto Rico is now joining to block the merger after they knew about this deal since March and didn’t say anything.  Now after investing 600 million for LTE in Puerto Rico, they don’t want the US (AT&T) to get more money.  

    And I’m convinced Sprint just releases statements for the heck of it.  How does Sprint release a statement saying they are going to release a statement next Friday?  BWAHAHAHAHA!!!!!

    • satannus

      You are wrong since they announce that companies are talking about that, att bought centennial and there’s only 4 companies left, there’s a rumors about sprint and open mobile bit just rumors, don’t say Puerto Rico don’t let USA (att) to get money, the problem is that att sucks as customer service and signal and everything.

      • BP

        When a lawsuit is filed late, it has to be an motive for it.  In early 2012

        AT&T, Claro and Open Mobile are launching commercial LTE services to help signal and everything.  If AT&T buys T-mobile, not only do they get more customers but Puerto Rico can’t tax them as they can Claro and Open Mobile.  This is why the Secretary of Justice for Puerto Rico has now joined the lawsuit.

        • josefrontanez

          Claro is shit,sprint is shit,at&t is shit,open is shit,the good ones where verizon and TMO and this is what our secretary of justice is doing what a douschebag.

      • josefrontanez

        Claro is shit,sprint is shit,at&t is shit,open is shit,the good ones where verizon and TMO and this is what our secretary of justice is doing what a douschebag.

      • josefrontanez

        Claro is shit,sprint is shit,at&t is shit,open is shit,the good ones where verizon and TMO and this is what our secretary of justice is doing what a douschebag.

  • Anonymous

    Sprint had done a great job in demonizing anything AT&T does out of its own self interest but very few people apparently see through Sprint’s veil of hypocrisy. 

    Sprint is just as self-absorbed.  What we have are two companies looking after themselves.  Neither AT&T or Sprint are looking out for the consumer but unlike Sprint, AT&T is willing to pay $39 billion dollars for this deal.  When you spend that kind of money of course you are going to defend your right to buy who wouldn’t? 

    In a perfect fantasy land world I’d love T-Mobile to remain as is.  I’d love for her to sell the iPhone.  I’d love for her to be extremely profitable.  I’d love it if DT actually cared about its US subsidiary and spent the necessary CAPEX to grow the network outside of metro areas etc.  But that hasn’t happened and isn’t going to happen.  

    I see a lot of comments posted here mainly out of fear of the unknown.  People are afraid they’ll lose their rate plans.  People are afraid and paranoid that their phones will suddenly stop working.  People are afraid that on day one their bills will sharply rise and they’ll no longer be able to afford their wireless bill.  But most of that is nonsense.

    If you were a business owner and wanted to sell could you imagine if the US govt and angry Twitter fans tried to block your every effort in an attempt to FORCE you to remain in business?   The govt has no business forcing any company to remain in business just because Sprint is afraid they’ll have to start actually competing a little harder and giving their customers more choices, better customer service and a bette network.  

    Sprint was allowed to buy Nextel (large national provider) and they were in the process of buying T-Mobile.  That would have been TWO national competitors they took out on their own.  How soon we forget?  

    • n900mixalot

      When we are dealing with what has been established as a limited resource (wireless spectrum) on common carriers, the US government has an interest in making sure that the public interest is served. There are plenty of arguments that wireless spectrum is not a limited resource, and that may be true but that is a separate and important argument that is beyond the scope of what we are dealing with today.

      The important issues are: (1) limited spectrum, (2) competition, and (3) consumer choice. The party that controls all three of these in concert, arguments with regard to whether spectrum is truly limited aside, is to be more increasingly scrutinized because we have chosen to allow our government to regulate telecommunications.

      People are certainly justified in worrying about their rate plans, their phones working, and sharp increases in billing because it has happened before and has been proven, time and time again, to be the result of past mergers/buyouts of this magnitude.

      The freedom of big business to conduct their business amongst one another is more heavily regulated, and entitled to further regulation, the more scarce the resource they are purveying is deemed to be.

    • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

      I have to disagree with you, the telecommunications industry is a regulated Government business, therefore the Government can meddle all they want into this transaction, remember this is not just any business, it’s a regulated business because of spectrum’s limited quantity. Given that fact, the Government is NOT telling T-Mobile nor is it forcing it to STAY in business. The United States Government is simply telling T-Mobile and AT&T, that they cannot become one entity. You may be wondering why? Well, the reason why the Government is stepping in, is for the GREATER good of this nation. If AT&T and T-Mobile become one entity, AT&T and Verizon (Working together) will BLOCK current competition, FUTURE competition, and ALL competition for that matter. Why would they do that? Well because they can do it and will be able to do it, given the market power that both of them would have. They already make exclusive deals with handset providers and make sure smaller carriers cannot carry the popular handsets such as the iPhone, etc (showing lack of competition). And then once current competition is blocked, in about 5 to 15 years, make no mistake about it, prices WILL increase from both of these carriers. And this is why the Government is stepping in, they know the wireless industry very well, as AT&T had a monopoly on landlines and long distance rates for up to 100 years in the past century.

      So if I was a business owner and wanted to sell, well if my business needs to answer to the Government, well then I obviously knew that when I first got into that business. So AT&T and T-Mobile cannot be angry about this situation, they knew the facts when they started their businesses and they knew that any changes they made HAD to be regulated by the Government. As for the Sprint and Nextel deal, we didn’t forget about it, that’s why the Government is now stepping in because there’s ALREADY too much consolidation. And it so happens that AT&T and T-Mobile deal came at a time when the Government decided to be more strict about consolidation.

      • Realcool2000

        Well said.

      • Realcool2000

        Well said.

  • Ismael Acosta1

    That happened here when att bought centennial the best cellular company, they mess everything and didn’t honor centennial unlimited plan.

  • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

    Honestly even if these lawsuits were to be dismissed, AT&T will still have to face the Department of Justice. Given that fact, AT&T can do whatever it wants but their T-Mobile deal is looking very grim right now. The most likely outcome of this whole mess will be that the deal would ultimately be blocked, if not by court, it will be blocked by the FCC. Since the FCC will not go against the Department of Justice on this matter, they never have gone against each other and there’s just no point to make both of these Government entities to fight over this.

  • GeezAnotherOne

    Nobody cares about Puerto Rico, Sprint or US Cellular other than their rabid fans, citizens, special interest lobbyists and employees of said companies / territories. 

    Just another big annoying fly on the wall to swat. 

    • tgb

      Yes the 1million people that will be affected by the att $$$$$ plans $$$$$. those people will care about PR

  • IHATEdramaQUEENS

    I find it ironic that Sprint of all companies is trying to give advice on what it means to be competitive and fair to the consumer.  (and then all the sheep here are foaming at the mouth listening to their word as gospel but at the same time claiming everything AT&T must be a lie).

    Sprint and AT&T can go STFU if you ask me but if I had to choose I’d rather be part of the nations’s largest GSM network and soon to be largest LTE network as opposed to that CDMA/iDEN/WiMax and soon to be LTE mess of a Sprint network.  

    AT&T has a fire lit under them and every single promise they make on paper or in the public will be examined for fruition under a tight microscope (which is a good thing to keep them on their toes).  I’m okay with becoming part of AT&T but I want LTE to be grown at an accelerated pace, for all T-Mobile subs to be offered a free AT&T smartphone with a comparable MSRP value to what they have now and to be allowed to keep their rate plans for a period of at least 36 months.  After that everything will be fair game. 

    • http://twitter.com/openupshop Christopher Chavez

      You better kiss your T-Mobile plans goodbye if this goes through.  Welcome to idiot customer service and shitty plans.  I would leave while you can now!  AT&T is garbage.