There goes my iPhone…
AT&T announced plans to purchase T-Mobile from Deutsche Telekom in March, which would have given the company forty three percent of the entire US mobile phone market. However, the US Department of Justice has requested a court order to block the merger, stating it would violate anti-trust laws. Both the DOJ and the FCC must give their blessing before the deal can go forward.
“The combination of AT&T and T-Mobile would result in tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services,” said Deputy Attorney General James Cole. “Consumers across the country, including those in rural areas and those with lower incomes, benefit from competition among the nation’s wireless carriers, particularly the four remaining national carriers. This lawsuit seeks to ensure that everyone can continue to receive the benefits of that competition.”
AT&T, T-Mobile, Sprint and Verizon combined provide ninety percent of the country’s cell phone services, according to BBC News. The Department of Justice has accused T-Mo of being a “disruptive force” in the mobile industry by driving prices down too agressively. The DOJ has not seen my T-Mo bill, apparently, and they need to stop hating because WE NEED THE PRICES TO BE LOW. Aggressively low.
To curry favor for the merger, AT&T had offered to bring back to the US some 5,000 jobs which had previously been outsourced. The company also claims that the deal would bring some 96,000 new jobs to the states.