AT&T’s T-Mobile acquisition to receive in-depth Department of Justice investigation

By on May 3, 2011 at 3:59 PM
mobile May 3, 2011

The Department of Justice will perform an “in-depth” investigation of AT&T’s proposition to acquire T-Mobile USA, Reuters is reporting. Such an investigation comes as no surprise, as one FCC official assured the public on April 14th that the acquisition would get a thorough review from government antitrust and communications officials. Bloomberg says that the DoJ can issue a decision in as little as 30 days, however, a “second request,” could mean that the investigation will take longer. AT&T announced its plan to purchase T-Mobile USA from Deutsche Telekom for $39 billion on March 20th. Despite Sprint’s claims that the acquisition will stifle competition in the U.S. wireless market, AT&T has argued that the deal will fuel economic growth and create new jobs.

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  • Anonymous

    As AT&T moves to 4G LTE (same as Verizon) and Sprint remains on WiMax… we wont have to worry about GSM monopoly.

    Actually, if Sprint ever decides to ditch WiMax and go LTE, it will be the same for everyone… except that AT&T will hold more wireless spectrum.

  • Anonymous

    As AT&T moves to 4G LTE (same as Verizon) and Sprint remains on WiMax… we wont have to worry about GSM monopoly.

    Actually, if Sprint ever decides to ditch WiMax and go LTE, it will be the same for everyone… except that AT&T will hold more wireless spectrum.

  • Anonymous

    As AT&T moves to 4G LTE (same as Verizon) and Sprint remains on WiMax… we wont have to worry about GSM monopoly.

    Actually, if Sprint ever decides to ditch WiMax and go LTE, it will be the same for everyone… except that AT&T will hold more wireless spectrum.

  • http://pulse.yahoo.com/_PBXPXZPTIZFTRESKHTO4LY3DWE Rex

    let’s go AT&T

    • Anonymous

      If D.C still had the intention of running TMO, but just weren’t financially able to do so, that would be one thing. They have no intention of running this company anymore, so they sold it to the highest bidder. How can ppl tell a company “u cant sell ur company to the highest bidder because we dont think its fair, so take less money elsewhere or keep it even though u dont want it anymore?”

      When Sprint was gunna buy it no one complained about “o no, there is now only 3 major carriers,” “o no, there is gunna be a monopoly,” and other arguments i’m seeing now. Face the facts, TMO is gunna get bought, all the haters are just pissed its not Sprint. I personally dont care i left TMO for AT&T a long time ago anyways.

      Like Fanboiz said…if Sprint buys TMO, they will move all the TMO customers to CDMA leaving AT&T as the only GSM network, which apparently is a monopoly.

      If Sprint buys TMO, their other option would be to switch to GSM which would leave VZW as the only CDMA network which is apparently a monopoly.

      Maybe u guys are saying the government should buy TMO, and run it until a suitable owner comes along, or just keep it forever and a government own provider to give such a choice. Thats not a monopoly, thats socialism.

      If all u nay sayers are so smart, what should TMO do? Should they not take the most money offered? U guys crack me up.

      • http://www.facebook.com/tkresila Tyler Kresila

        “When Sprint was gunna buy it no one complained about “o no, there is now only 3 major carriers”

        Thats because Sprint is #3 … it’s not as large as AT&T. Two smaller companies – each known for low prices merging isn’t a bad sounding acquisition. AT&T, being the greedy bastards they are buying up T-Mobile is bad.

        Back in the day, what is essentially AT&T today was known as Ma’ Bell and the government forced them to split up before becoming a monopoly.

        They’re becoming too big again…

        There is no spectrum shortage and if they invested a little more of those profits into their network, they wouldn’t have network issues..

      • Anonymous

        I have never read a comment from a TMO customer that said “yes i cant for this deal to go through.” Its always “im going to Sprint,” or “no, i dont want AT&T” or something like that. In no way is AT&T gunna get every TMO customer, i think Sprint will greatly benefit from this deal as well as VZW when ur talking about TMO customers jumping ship. IMO i dont think AT&T did this for the customers, they did this for the network.

        I know all about Ma’ Bell, i know how they were broken down, and became basically the same giant it once was. Except ur missing one point, the “old” AT&T is not the “new” AT&T.

    • KillATT

      Lets not

  • Anonymous

    I hope the DoJ, FTC, and the FCC come to their senses, and rejects this buyout. There is a reason, why T-Mobile customers have not signed up with AT&T. Not even for the iPhone.

    • Anonymous

      You’re right. In fact, it’s actually the same reason people with Discover cards often don’t have Visa cards: poor credit history.

      • Lazaro

        Ummm how about lower prices and better customer service? Assuming T-Mobile customers have poor credit history is ignorant. I hope you’re enjoying the VIP skyboxes over at AT&T where only people with American Express Black Cards are allowed.

      • Frenchy

        LOL….sad part is i work for Amex and Centurion Black Card to be used at Gas station because its too thick

  • Anonymous

    I hope the DoJ, FTC, and the FCC come to their senses, and rejects this buyout. There is a reason, why T-Mobile customers have not signed up with AT&T. Not even for the iPhone.

  • Anonymous

    I hope the DoJ, FTC, and the FCC come to their senses, and rejects this buyout. There is a reason, why T-Mobile customers have not signed up with AT&T. Not even for the iPhone.

  • Anonymous

    I hope the DoJ, FTC, and the FCC come to their senses, and rejects this buyout. There is a reason, why T-Mobile customers have not signed up with AT&T. Not even for the iPhone.

  • Anonymous

    I hope the DoJ, FTC, and the FCC come to their senses, and rejects this buyout. There is a reason, why T-Mobile customers have not signed up with AT&T. Not even for the iPhone.

  • http://pulse.yahoo.com/_GP2WYAHXS6CRUREISWBGPUSUGE Michael

    I hope the FCC pulls a “navy seal” on this deal…..

    /just saying.

  • Anonymous

    Whats funny is that when Sprint thought of buying T-Mobile, nobody really cared… yet if Sprint did get T-Mobile, that would either:

    1) Eventually transfer all of TMo’s customers over to CDMA and still give AT&T a GSM monopoly

    2) Eventually transfer all Sprint customers to GSM and leave Verizon as the monopoly of CDMA

    So really, someone is going to have a cell system monopoly because, lets face it, Sprint cant run both CDMA and GSM. So if you are on TMo and dont like it, switch to another carrier. If you are on TMo and like the merger, keep it. Either way, TMo is going to get bought up because they have no future plans because D.C. wants to dump them.

    • Anonymous

      I see the point you are trying to make but your opinion has no more weight than anyone else who’s against the merge. Granted you did bring up some factual info about whether Sprint or AT&T gets TMO it will result in a monopoly. But the real case here lies with the government and what their decision will be after the investigation. I’m not convinced they are that concerned about a monopoly of GSM or CDMA, but rather a duopoly of the mobile industry which is far worst than having a monopoly of a particular radio. Government can’t tell D.C. they can’t sell TMO but they do have to right to step in and say you can’t sell to this company because it will breach antitrust laws no matter how much AT&T offered. So don’t get so bent out of shape because of people’s opinions they have a right to express it, even if it doesn’t line up with what you believe. Me personally, I don’t think it will go through because of the antitrust laws, but looks like we’ll have to wait it out and see.

      • Anonymous

        actually idk why it wouldn’t be approved. The closest comparison would be vzw purchasing altell.. Roughly same number of customers. And it was approved 5-0. Att will have to sell off some markets but will retain at least a15 million customer edge.

  • http://pulse.yahoo.com/_AQK5AHUSEA5TPNTQYBVRJB5554 ray

    T-Mobile needs to be bought by someone. They have no spectrum available for a more true 4g, namely LTE (which I know that Advanced-LTE is the real 4g since it handles voice). They are losing money consistently. Sprint isn’t going to buy them because they are on their WiMax 4g stuff and are going their own isolated road on that in the US. Verizon won’t buy them, at least I don’t think. So who does that leave? Metro PCS? US Cellular? Do they have that capital to buy them out? No.

    This deal should go through because no company wants to continue to bleed money for years with no end in sight and no path the LTE. Their plans of being the cheapest of the big 4 has failed miserably. Who cares if you have the best customer service, the fastest 3G (which is what they are advertising as 4g) and the best plans. If you’re losing money over and over and over, something drastic has to be done.

    • Anonymous

      What they call 3g is faster than lte in the US right now

    • Don

      Wrong Sprint has the first official 4g with their WiMax network. AT&T and VSW LTE network is actually the mock up.

  • DonRSD aka PSN DonVCorleone

    GO AT&T!!!

  • DonRSD aka PSN DonVCorleone

    GO AT&T!!!

  • RIMsucks

    Fuck AT&T

    • Ben

      Another unhappy Verizon or Sprint customer that isnt smart enough to express himself without using expletives, probably a kid.

  • RIMsucks

    Fuck AT&T

  • Mr8820

    I’m against this as a T-Mbile customer, but we all know this is just a dog and pony show….those guys deciding this are already paid off…think about it; AT&T has record contributions to politicians and will have to pay $3 billion if this doesn’t go thru..you think they’re going to bite the hand that feeds them?

  • Mr8820

    I’m against this as a T-Mbile customer, but we all know this is just a dog and pony show….those guys deciding this are already paid off…think about it; AT&T has record contributions to politicians and will have to pay $3 billion if this doesn’t go thru..you think they’re going to bite the hand that feeds them?

  • Anonymous

    meh, in the end it will be no different than if they had rubber stamped the deal, so git’r dun.

  • LOLcat

    Fuck TELECOMS and FUCK Monopolies. This deal is only going to be one thing for consumers, BAD.

    The government should build and own all cellular infrastructure and lease them to many companies so consumers have a CHOICE and can reward good companies with their business and leave bad ones in the dust (I’m talking to you Verizon you bloatware installing assholes).

    A libertarian socialist can dream cant he…

  • http://www.facebook.com/people/Vijay-Reddy/100001174567133 Vijay Reddy

    FCC should break the contract between AT&T and iPhone. Direct Apple to sell iphone with all carriers in USA…That’s it…everything will fall in right place.

    • Anonymous

      That wont matter… if AT&T acquires TMo, then the iPhone will be made to work on TMo.

      • Anonymous

        Pricing will increase, Americans will have less choice and hundreds of people will be put out of work when this deal goes through….but who cares! As long as I can have an iPhone it’s worth it.

    • http://twitter.com/danimondi dan imondi

      Do you live under a rock?

  • http://twitter.com/mimislittlelamb Arif

    i really hope they go against this buy out. I have a unlocked iPhone on tmobile and i wouldnt change that for a bit. Yea i love my iphone but i dont want to have any of ATTs high priced plans. Say what u want about tmobile, but they have excellent customer service and some of the cheapest plans out there. I never have a problem with their service and I wouldnt trade it.

  • Anonymous

    I hope this goes through. With $39 billion in its pocket, T-Mobile can build a fantastic new netwotk in Europe for us over here.

  • Neoprimal

    How can less competition EVER be good? We realistically have 4 NATIONAL carriers. V, A, T, S.
    You can sometimes go the off-route and do boost, metropcs, cricket, virgin, straight talk, etc. but many of those piggyback on one of the bigger 4 in some way. There are some areas which also have their own regional companies but that’s neither here nor there.

    If ATT and TMobile merge, we’ll have V, A and S. We’ll go from 2 GSM carriers to 1 GSM carrier…no matter how you want to cut it, they may not be a cell phone carrier monopoly but they will be a cell phone technology monopoly and those of us who wish to subscribe to GSM service will have no choice.
    How will that be good for anyone at all?

    If it were a situation where we had 6 or 7 national carriers, 2 merging may be seen as a boon somehow Especially if one was cdma and the other gsm. Then we’d have a company on the market able to compete against each of the others and a carrier that gives everyone the option of choosing either a CDMA or GSM phone without having to switch companies. But 4 becoming 3 is not at all optimal, unless something new emerges on a national front and I highly doubt that.

    In my opinion, I don’t care how much it would benefit Tmobile or ATT. I’m a consumer and I prefer the competition, and anyone who can’t see or acknowledge that just doesn’t care or are with ATT and already subscribe to what they have. ATT customers have nothing to lose and everything to gain.
    I use Tmobile, I get exceptional service and data rates at a really, really good price.

    People keep saying plans will be Grandfathered, etc. Sure they will, but in reality it won’t last….Grandfathering plans and such is now almost an affront to these companies and they use it as a mask to squeeze some more money from their long-time-but-about-ready-to-switch customers.
    They tell you, “sure we’ll Grandfather your plan, no problem”! A year or two later or upon your phone breaking, you want to get a new phone and you check the small print which says “in order to get so and so discount (which lets face it, most of us use to subsidize the ridiculous cost of these cell phone) you must be on so and so plan”….on so and so plan meaning? Meaning the plan you’re not currently on. The plan you must give up/switch from in order to get that discount. So you lose your grandfathered plan in order to get a phone for $200 (because it’s $700 at suggested retail) and you’re then forced to pay more money for less minutes/less data allowance/less speed, etc.

    The writings on the wall.

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