What If AT&T and T-Mobile Actually Merge?
Last week, the U.S Department of Justice blocked AT&T’s $39 billion acquisition of T-Mobile. If these companies were to successfully merge, they would create a wireless network superpower capable of exponentially reducing competition in the field of mobile carriers. The Department’s deputy attorney, James M. Cole, addressed national concerns about the merger, saying that it would cause “tens of millions of consumers all across the U.S [to face] higher prices, fewer choices and lower quality products for their mobile services.” The intervention surprised AT&T executives, prompting a disappointed response from Vice President, Wayne Watts.
On September 6th, Sprint Nextel filed a similar lawsuit blocking the merger, creating yet another legal hurdle AT&T would have to overcome. If this merger were to pass, it would almost certainly put companies like Sprint, MetroPCS, Boost, and other smaller networks out of business. Therefore, Sprint’s interference isn’t a surprising move in the least.
Insights wants to know what our readers think about the proposed merger. Do you think the government’s involvement is justified? Do you think this move will be good or bad for the mobile industry? Do you think there’s still a chance that this merger could pass at all? Let us know by commenting, or emailing the contributors directly.
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