In what appears to be a rapidly growing list of concerned carriers, Cellular South Inc. has joined the ranks of many proposing a block of AT&T’s acquisition of T-Mobile USA.  Cellular South Inc., the ninth largest wireless telecom when it comes to customer base has officially sued AT&T with the aim, like most, to stop the acquisition of the scrappy T-Mobile USA.

The company stated in its initial complaint of the acquisition that the merger “threatens to substantially lesson competition“.  Cellular South joined the ranks of those suing AT&T shortly after seven U.S. states followed the DOJ and Sprint in suing the wireless giant.  Vonya McCann, Sprint’s senior vice president of government affairs had this to say via an e-mail statement:

“As this growing chorus of opposition shows, this proposed transaction violates antitrust law and is not in the best interests of consumers and the American economy,”

Following the Sprint lawsuit on Sept 6th, Mike Balmoris, an AT&T spokesman stated:

“Sprint is more interested in protecting itself than it is in promoting competition that benefits consumers,”

AT&T is still working on a strategy as they aim and equip themselves to continue to fight these lawsuits in conjunction with trying to explore some sort of a settlement with the Department Of Justice.  The carrier is sticking to their claim and idea that the acquisition will improve wireless services and offer a number of new jobs subsequently slightly boosting the economy.

“The merger would make Dallas-based AT&T the largest U.S. wireless operator, ahead of Verizon Wireless, and would cement the dominance of the “Big Two” over regional carriers” says Cellular South in its filing.  Furthermore, the carrier went on to say that the company will “find it harder to secure both wireless devices at competitive prices and times and nationwide roaming“

The case is Cellular South Inc. v. AT&T Inc., 11-cv-01690, U.S. District Court, District of Columbia (Washington).

Hit the break for the full presser and don’t forget to chime in with your thoughts on the acquisition.  Are you for it or against it?

Press Release:

Cellular South Files Suit to Block AT&T’s Takeover of T-Mobile

Washington, D.C. – Cellular South today filed suit to block AT&T’s planned acquisition of T-Mobile. The suit was filed under Section 7 of the Clayton Act in the U.S. District Court for the District of Columbia. The lawsuit has been filed as a related case to both the Department of Justice (and seven state Attorneys General) and the Sprint Nextel antitrust litigation against the proposed transaction.

Cellular South’s complaint states that AT&T’s proposed takeover of T-Mobile must incorporate a review from the perspective of regional carriers, like Cellular South.

“AT&T’s proposed takeover of T-Mobile would profoundly impact the interests of the wireless industry as a whole,” said Eric Graham, Cellular South Vice President for Strategic & Government Relations. “If AT&T were to complete this deal, not only would it substantially lessen competition, but it would essentially consolidate the market into the hands of the ‘Big Two’ – AT&T and Verizon.”

Graham added: “Today’s filing is another step in Cellular South’s unwavering effort to pursue the best interests of competition, wireless consumers, and our nation’s economy.”

Cellular South’s complaint explains that further consolidation of market power in the hands of AT&T and Verizon would mean that:

- regional carriers, like Cellular South, will not be able to obtain the latest wireless devices in a timely fashion and at a reasonable cost;

- Cellular South and other regional carriers will be forced to pay higher roaming prices – assuming that they are able to obtain roaming agreements at all; and

- consumers throughout the country will face higher prices, less innovation, fewer choices, and reduced competition.

[via bloomberg businessweek]

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