AT&T Responds To Govt Merger Block

So, the US Government thinks that AT&T and T-Mobile merging would just serve to kill competition in the cellphone market, href="http://www.everythingicafe.com/us-govt-moves-to-block-att-t-mobile-merger/2011/08/31/">and don’t want it to happen — a view I happen to agree with. AT&T, understandably, do not, and have href="http://techcrunch.com/2011/08/31/att-responds-to-doj-the-facts-will-prevail-in-court/">issued a statement:

We are surprised and disappointed by today’s action, particularly since we have met repeatedly with the Department of Justice and there was no indication from the DOJ that this action was being contemplated. We plan to ask for an expedited hearing so the enormous benefits of this merger can be fully reviewed. The DOJ has the burden of proving alleged anti-competitive affects and we intend to vigorously contest this matter in court.

At the end of the day, we believe facts will guide any final decision and the facts are clear. This merger will:

We remain confident that this merger is in the best interest of consumers and our country, and the facts will prevail in court.

I’m betting much of this recent swing against the merger can be traced back to href="http://www.everythingicafe.com/leaked-doc-shows-the-real-reason-behind-att-t-mobile-merger/2011/08/15/">a leaked AT&T internal memo in which the company pretty much admitted that they were actually doing it so they could kill competition, as it would have been cheaper for them to build their own 4G network rather than acquire T-Mobile.

Keep in mind that if the deal falls through, AT&T will still have to pay T-Mobile a hefty fee, something I’m sure they’re keen to avoid.