Justice Department blocks AT&T-Mobile merger

[yaz96]

BREAKING NEWS: Justice Department blocks AT&T-Mobile merger
Comments 0
August 31, 2011 8:58 AM
THE ASSOCIATED PRESS



WASHINGTON (AP) -- The Justice Department is blocking AT&T's $39 billion deal to buy T-Mobile USA, saying the acquisition of the No. 4 wireless carrier in the country by No. 2 AT&T would reduce competition and raise prices.

The deal has faced tough opposition from consumer groups and No. 3 carrier Sprint since it was announced in March.

AT&T could challenge the Justice Department's action in court.

A failure of the deal puts T-Mobile in a difficult position. It's struggling to compete with the larger carriers, and owner Deutsche Telekom AG has said it's not willing to invest more in the venture.

However, AT&T has promised T-Mobile $3 billion in cash if the deal doesn't go through, plus spectrum rights and agreements that could be worth billions more.



Read more: Justice Department blocks AT&T-Mobile merger | justice, news, blocks - BREAKING NEWS - Colorado Springs Gazette, CO

 

[yaz96]

As a T-Mobile customer I am happy about this, didn't want to be forced back to At&T. But I didn't realize Deutsche Telekom wants to bail.....

 

[meStevo]

T-Mobile: Cha-ching.

AT&T has promised T-Mobile $3 billion in cash if the deal doesn't go through, plus spectrum rights and agreements that could be worth billions more.

 

[TheForce]

AT&T To Bring 5,000 Jobs Back To US If T-Mobile Bid Gets Regulatory OK
1:45a ET August 31, 2011 (Dow Jones)
AT&T To Bring 5,000 Jobs Back To US If T-Mobile Bid Gets Regulatory OK

By Greg Bensinger
Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--AT&T Inc. (T) said it will bring 5,000 wireless call-center jobs it has outsourced abroad back to the U.S. if its proposed $39 billion deal to buy Deutsche Telekom AG's (DTEGY) T-Mobile USA is approved by regulators.
Late Tuesday, AT&T said it would add the jobs after the deal closes and promised not to cut any more wireless call-center positions. The move is contingent on the U.S. Federal Communications Commission and Department of Justice approving the takeover, company spokesman Brad Burns said in an email.
The carrier is pressing its case for the merger against opposition from rivals, including Sprint Nextel Corp. (S), as well as some politicians. AT&T is also facing scrutiny from a utilities commission in California and was told its $1.9 billion bid for wireless licenses from Qualcomm Inc. (QCOM) would be considered simultaneously with the T-Mobile deal, potentially slowing the process.
The jobs pledge is the latest salvo in AT&T's effort to secure approval for the deal, which it says will help expand wireless broadband to more Americans. AT&T promised T-Mobile a $3 billion cash breakup fee, as well as some assets, if the merger fails to pass regulatory muster.
Burns declined to say how many call-center jobs AT&T currently outsources or what the disparity in salary is compared with similar U.S. jobs. AT&T has said it expects the U.S. approval process would last through early next year.
On Tuesday, AT&T shares rose 1.2% to $29.62.

Here's my take if I were an AT&T customer: Send them a letter saying I will switch to Verizon or Sprint unless you stop the practice of sending jobs overseas and bring back ALL jobs you have outsourced immediately. How dare you use the American labor force as a pawn in this M&A bid!

How do you think AT&T would react to this if they got 25% of their subscriber base threatening them they way they are now extorting the Justice dept with their shallow promise of quid pro quo. Talk about AT&T using the American labor force as a hostage!!!! This company is just plain evil!

 

[DustoMan]

Not surprising especially after that leaked document was accidentally put up on the FCC website that brought out some blatant lies on AT&T's part.
https://secure.dslreports.com/shownews/Leaked-ATT-Letter-Demolishes-Case-For-TMobile-Merger-115652

 

[reddice]

I have T-Mobile pay as you go. I use my phone very little so I am glad it may not pass.

 

[goaliebob99]

Wow the government actually did something right!

 

[dangue]

This doesn't really mean anything. The Justice department has done this in the past and then settled with the company after gaining concessions that they thought were favorable (see Google's semi-recent acquisition of a company that aggregates airline pricing information).

I hope this acquisition is blocked because it is very much anti-consumer and pro industry. The leaked document made that painfully clear. However, this is far from over and may just be a speed bump for ATT to overcome.

 

[Scott Greczkowski]

The FCC was going to block it anyways.

 

[TheForce]

I hope this acquisition is blocked because it is very much anti-consumer and pro industry.

I don't agree with this as a general principle.

Just wanted to be clear on this ideology. I do stand by MY reasons why this deal should be blocked as stated above in my former post. I don't like how they do business. Not all companies are so anti American. A few are indeed but they don't slap us in the face with it like AT&T did. I'm equally shocked that more Americans don't stand up to them and boycott their service for pulling a stunt like that. They tried to screw me over a few years back when I was paying them $145 a month for land line service. and $65 a month for Cable TV. When they did that to me I pulled both accounts just like that. Maybe it's where I live, AT&T Cable TV lost their charter in Jacksonville a few years ago because they treated the customers here so bad the mayor's office and city council got involved. Now we have Comcast.

 

[CK SatGuy]

I switched my landline and Internet from AT&T las year because they kept lying to me about what my Internet speed should be. Long story short, the salespeople didn't get their info straight from the technicians.

Sent from my iPod touch using SatelliteGuys

 

[riffjim4069]

Good move by DOJ.

 

[mike123abc]

Even though I am an AT&T wireless customer I am glad that this was blocked. AT&T & VZ already have too much control of the wireless market. Competition is still very much needed in this field. AT&T has enough spectrum, they were just doing this manuever to cut down on competition... i.e. raise my bill...

Virgin Mobile's ad running in theaters is so true:

PARTY - YouTube

 

[NGeorge]

AT&T Cable TV lost their charter in Jacksonville a few years ago because they treated the customers here so bad the mayor's office and city council got involved. Now we have Comcast.

AT&T Cable got bought out by Comcast... everyone who had AT&T Cable now has Comcast ;-)

Comcast is only marginally better than AT&T--at least they did a major upgrade to the systems around here. That said, their prices are still about 40% more than satellite for similar services--which is why I've been a D* customer since 1999.

--Nat

 

[JAG72]

AT&T Cable got bought out by Comcast... everyone who had AT&T Cable now has Comcast ;-)

Comcast is only marginally better than AT&T--at least they did a major upgrade to the systems around here. That said, their prices are still about 40% more than satellite for similar services--which is why I've been a D* customer since 1999.

--Nat

Sorry but this is not correct. Not all AT&T cable customers were bought by Comcast. In my area Wide Open West bought out the Americast venture not Comcast.

 

[TheForce]

But NGeorge is technically correct here in Jacksonville because of how it all went down within a couple of days. AT&T was given until the end of the month to cease operations and Comcast was to replace them, but then at the last minute Comcast did buy out the division so the city didn't have to undergo a legal battle with AT&T. On the internet side of the business, AT&T was down 50% of the time it seemed and took forever to get service back. A month after Comcast took over the service was up easily 95% of the time and it just got better from there. As a business account, I was always trying to get AT&T out to fix the bad internet connections but Comcast showed up with 2 hours of my call. Comcast assigned my own AE and I got a special phone number to contact him when I had trouble. With AT&T all I would get is a recorded message to leave my number and they would call me back which never happened.

 

[Sean Mota]

....This company is just plain evil!

Those words are exactly right. As a T-Mobile customer, I am against being forced to be a A&T customer. When I was shopping around for a wireless provider and a smartphone, two companies that were always at the bottom of the list were AT&T and Apple. Their prices are never competitive...

Sent from my LG-P999 using SatelliteGuys

 

[GaryPen]

Yay.

 

[james_k_p]

Soooo I guess this means AT&T will not be improving...and come October...might be taking my iphone back to my ol' favorite provider...Sprint.

 

[Stargazer]

Until some recent readings I never realized that AT&T was rated as the worst of the major providers when it comes to dropped calls and signal coverage. Four years ago when wanting to choose a carrier I went with them because they had the most customers or were close to Verizon with how many they had so I thought they had the most towers. I read that Verizon and Sprint has better service areas than AT&T.

Doesn't Wal-Mart's Straight Talk phones work off of T-Mobile? I know a lot of people that have those because they are only $45 for unlimited talk text and web.