AT&T responds to Senate Antitrust Subcomittee chairman’s recommendation to block merger

By on July 20, 2011 at 5:35 PM.

AT&T responds to Senate Antitrust Subcomittee chairman’s recommendation to block merger

Earlier on Wednesday, the Senate Subcommittee chairman Senator Herb Kohl urged federal regulators to block AT&T’s planned $39 billion acquisition of T-Mobile. On Wednesday afternoon, AT&T responded to Senator Kohl’s recommendation with the following statement:

We respect Senator Kohl. However, we feel his view is inconsistent with antitrust law, is shared by few others, and ignores the many positive benefits and numerous supporters of the transaction. This is a decision that will be made by the Department of Justice and the FCC under applicable law and after a full and fair examination of the facts. We continue to believe those reviews will result in approval of this transaction.

Despite opposition from Kohl and others, AT&T said that there are currently 26 governors, 76 democratic members of congress, 72 mayors, and unions that represent 20 million members that are in favor of the merger and argue that it will be good for consumers, provide jobs, and help the economy. In addition, Senator Mike Lee also made a statement today in support of the AT&T/T-Mobile merger. “The mobile phone market is a critical component of our nation’s economy and the proposed merger between AT&T and T-Mobile deserves careful review,” Lee said. “In my view, the merger has the potential to provide significant network efficiencies that may help alleviate capacity constraints, enable enhanced service quality, and facilitate expansion of a 4G LTE nationwide network, which would in turn create opportunities for handset innovation and continued development of data-rich applications.” Lee also said that he’s confident the FCC and Department of Justice will ensure that the U.S. wireless market remains competitive. More →

51 Comments

Nine states subpoena Sprint over opposition to AT&T’s T-Mobile acquisition

By on July 12, 2011 at 10:40 AM.

Nine states subpoena Sprint over opposition to AT&T’s T-Mobile acquisition

Sprint has received subpoenas from Arizona, Florida, Hawaii, Illinois, Minnesota, New York, Pennsylvania, Texas and Washington regarding its opposition of AT&T’s planned $39 billion T-Mobile USA acquisition, Reuters reported on Tuesday. The U.S. Department of Justice’s antitrust division also issued a subpoena. Sprint has been a staunch opponent of the deal and its CEO Dan Hesse has said the acquisition will “stifle innovation” in the U.S. wireless market. He also said that “clearly, purely, [Sprint wants] to win and block the merger,” when it was revealed that Hesse was working with 18 state regulators to block the acquisition. The deal is getting an in-depth investigation from both the Department of Justice and the Federal Communications Commission. On June 22nd, AT&T’s General Counsel Wayne Watts said that the acquisition was on schedule for approval in March of next year. An AT&T spokesperson told Reuters that AT&T also received the same nine subpoenas. More →

30 Comments