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Mean Justice Department Blocks AT&T's Merger With T-Mobile
By
Christopher Robbins
Published Aug 31, 2011
Modified Aug 31, 2011
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By
Christopher Robbins
Published Aug 31, 2011
Modified Aug 31, 2011
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The Department of Justice filed a lawsuit earlier today to bar AT&T's purchase of T-Mobile USA for $39 billion, the AP reports. Deputy Attorney General James Cole said in a press conference that the deal would culminate in "tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless users." Aw, c'mon! We stockpiled nights and weekend minutes in preparation for AT&T-world-order for nothing?
When details of the sale first leaked back in March, analysts deemed it a "huge win" for AT&T, as it would merge their 95.5 million wireless customers with T-Mobile's 33.7 million, accounting for 42 percent of all wireless subscribers in the country, leaving Verizon with 32 percent. Wall Street was fine with it too, as DealBook reported that it precipitated "more than half a dozen firms collecting hundreds of millions of dollars in fees."
If the Justice Department is successful, T-Mobile will receive a $3 billion "breakup fee," which is three percent higher than the usual 5 percent, a sign of AT&T's confidence that the deal would succeed. No word on whether they will receive Catherine Zeta-Jones as well.
Tagged
at&t
cell phones
department of justice
monopolies
obama administration
t-mobile
wireless carriers
Christopher Robbins
Christopher Robbins is a New York City reporter covering transportation, affordable housing, local politics, and criminal justice. His work has also appeared in New York Magazine, The Village Voice and The New York Times. Chris is a graduate of Patrick Henry High School in Roanoke, Virginia, and enjoys biking to Fort Tilden in the summertime.
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Gothamist is funded by sponsors and member donations
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