According to recent reports, AT&T is prepared to divest up to 40% of T-Mobile's assets in an attempt to salvage the merger between the two network providers. Back on August 31st, the Department of Justice sued to block the merger citing that “AT&T’s elimination of T-Mobile as an independent, low-priced rival would remove a significant competitive force from the market.” AT&T hopes that by offering up a lower percentage of spectrum and a higher share of T-Mobile's customers, they could gain the approval of the DOJ. Some believe that the divestiture may not be enough to add balance to the market and it would be unlikely for the DOJ to allow a larger company like Verizon Wireless to purchase the assets. It is also believed that AT&T may need to rely on smaller carriers to pick up the customers and spectrum.
According to the DOJ guidelines, any purchaser of the assest would need to have access to the same market share as T-Mobile enjoys and would basically need to fill their shoes. This means any new entity would have to create a network capable of covering 97% of America and offer exclusive handsets every year, just like T-Mobile.
It is believed that the divestiture wont really help AT&T's cause and they are just going to have to take their chances in court this coming February. As it stands right now, AT&T withdrew its merger application to focus solely on the DOJ lawsuit and will reapply for the acquisition when said case is resolved.
[via BGR]
