In less than a year, AT&T went from swallowing up T-Mobile USA for for $39 billion to owing T-Mobile’s German parent company $3 billion in cash and another billion in spectrum because that deal slammed into the regulatory roadblock at the FCC and the Justice Dept. Speaking for the third year in a row at the Consumer Electronics Show, FCC chair Julius Genachowski defended his agency’s actions against the deal.
Two days after the FCC announced it intends to hold a rare administrative hearing on AT&T’s proposed purchase of T-Mobile USA, the folks at the Death Star have decided to pull their merger application to the regulator, at least until the end of its legal battle with the Dept. of Justice.
While we all wait for the legal fireworks that are sure to come from the Justice Department’s lawsuit to stop the AT&T purchase of T-Mobile, the folks at the Federal Communications Commission are reportedly looking to hold an administrative hearing on the deal, which could make things even more difficult for the merger.
Last spring when the first Senate hearings were held regarding AT&T’s pending purchase of T-Mobile USA, the folks at the Death Star repeatedly stated that they weren’t trying to eliminate competition because they don’t view the much smaller T-Mobile as competition. Unfortunately for T-Mobile, having to keep up that charade while AT&T fights the Justice Dept.’s attempt to block the deal could result in the loss of millions of customers.
Right now, U.S. cellphone users can only choose between AT&T and Verizon Wireless if they want to use the iPhone without jailbreaking it to use on another provider’s network. And even though T-Mobile may eventually get the iPhone if AT&T can convince the courts and regulators to let its purchase of T-Mobile USA go through, a number of customers aren’t waiting.
Yesterday was the first hearing in the Justice Department’s lawsuit to block AT&T’s purchase of T-Mobile USA. And even though the judge had reportedly told both parties to be prepared to discuss settlement at yesterday’s first hearing in the matter, it looks like no such terms were discussed, as AT&T is hoping to bring the case to trial sooner than later.
Of the 117 members of Congress who penned a letter to the White House in support of AT&T’s purchase of T-Mobile, 116 of them have received political donations totaling $963,275, from AT&T employees in the last two years.
With the Justice Department suing to block AT&T’s $39 billion purchase of T-Mobile USA, some have begun wondering what would happen to the country’s fourth-largest wireless provider should the deal fall through. That includes T-Mobile’s parent company, Deutsche Telekom, which is reportedly looking at options for its American business.
The judge in the Justice Dept. lawsuit to block AT&T’s purchase of T-Mobile USA has not only set a date for the first hearing in the case, she’s also advised both sides to start thinking about settlement terms.
Less than one week after the Justice Dept. filed a lawsuit to block AT&T’s pending $39 billion purchase of T-Mobile USA, Sprint has filed a lawsuit of its own (but related to the DOJ suit), seeking to have the deal called off.
Though it’s been said since the beginning that AT&T’s proposed $39 billion purchase of T-Mobile USA would be an uphill climb, most people seemed to think it would ultimately still go through. But earlier today, lawyers for the federal government filed a lawsuit in federal court to block the merger, saying it would violate antitrust law and “substantially lessen competition.”
We’ve been hearing a lot of buzz from those in the wireless world that T-Mobile employees are dreading the day their company is finally acquired by AT&T and they start reporting for work at the Death Star. But while most of T-Mobile’s 38,000 staffers have been reluctant to say anything bad publicly about their future overlords, one employee pulled no punches in detailing their feelings about the merger.