[Breaking] U.S. files Antitrust Complaint to block AT&T and T-Mobile merger

Apparently the U.S. government is not in agreement with the AT&T purchase of T-Mobile as it has filed court papers in Washington to block the $39 billion merger. According to the U.S. government is would “substantially lessen competition” in the wireless market.

The U.S. is seeking a declaration that AT&T’s takeover of T-Mobile would violate U.S antitrust law which would result in a court order blocking 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.

Most people thought the deal would eventually happen by March of 2012, but it is very unlikely at this point. If this holds, AT&T would pay Deutshce Telekom (owns T-Mobile) $3 billion in cash, and would provide T-Mobile with wireless spectrum in some regions and reduced charges for calls on AT&T’s network. The cost of all of this could top $7 billion.

The major winner here is Sprint. Their stock is up around 7% in early trading.

So how are T-Mobile subscribers feeling today? Is anyone surprised by this news? I certainly am.

[via bloomberg]

About the Author: Robert Nazarian

Robert lives in upstate New York where he was born and raised. Technology was always his passion. His first computer was a Radio Shack TRS80 Color that used a cassette tape to save programs, and his first laptop was a Toshiba T1200FB that sported a CGA greyscale screen and two 720kb floppy drives (no hardrive). From the early 90’s through late 2011, he only owned Motorola phones starting with the MircroTAC all the way through to the Droid X. He broke that streak when he bought the Galaxy Nexus. Now he's sporting a Galaxy Note 4, and absolutely loves it. He has a wonderful wife and a 6 year old son. In his free time he enjoys sports, movies, TV, working out, and trying to keep up with the rapid fast world of technology.

  • http://www.facebook.com/hawes.peter Peter Hawes Icaza


  • http://www.facebook.com/hawes.peter Peter Hawes Icaza

    Long live SPRINT’s NOW network!

  • http://www.xyrotr1.com/ Zentra

    I’m surprised the government isn’t still asleep on this issue. However, as a current T-Mobile subscriber, I’m ecstatic that I won’t be subjected to the hell I was once tied to called AT&T. This is a good day. :)