AT&T and T-Mobile acquisition date pushed back

AT&T and T-Mobile

AT&T has officially pushed back its self-imposed closing date for gobbling up the nations fourth-largest carrier, T-Mobile. AT&T still seems to believe that it will close the T-Mobile deal by the end of next year’s first half despite opposition from the Justice Department and a potential lawsuit from Sprint. If the deal doesn’t go through, the Dallas-based company stands to lose $3 billion to T-Mobile.

AT&T’s chances don’t look good because the Justice Dept. is sticking to its guns when it says the deal could harm consumers by reducing competition and raising prices, and I happen to agree. It’s crystal clear as to what would happen if such a deal were to pass: AT&T would stand to be the only major GSM carrier in the land, and with that kind of cache they could set prices however they see fit and most customers would have to put up with it because there wouldn’t be anywhere else to go for particular handsets.

That said, the case goes to trial on Feb. 13. Analysts give AT&T little chance of defeating the Justice Department and getting the deal through, but stranger things have happened so don’t completely rule out the acquisition. What do you guys think, should the government back off and let the deal go through instead?

[via WSJ]

  • http://twitter.com/Sr_Amir3 Miguel Rodríguez

    I hope the deal goes thru. T-Mobile doesn’t always offer the best signal and, well, I don’t think that this becoming the major GSM thing is really gonna happen, We everyone moving to LTE-flavored devices soon, Every cellphone will be GSM, basically, and by gobbling up T-Mobile, a new player could introduces itself in  the U.S. Market, let’s be honest, there’s more than enought pie to go around. Northamericans love tech and the impulsiveness of buying gadgets would only allow for a European company or a smaller carrier to grow and get some of the pie. Including the service people from  T-Mobile might soften up the AT&T staff as well and you might just see retail store expanding to tend to customer’s needs a bit more. if that doesn’t work, then, shoot the shite and go with Simple, H2O or Verizon and your good to go.

    • Ted516

      lol a new player most certainly couldn’t introduce itself into the market. First of all cell phone carriers dont make phones and if AT&T were to buy T-mobile there would basically be a Duopoly and there would be significant barriers of entry for new carriers. 

      AT&T acquiring T-Mobile is a ridiculously bad idea. Its super anti-competitive and they are just trying to bring back ma-bell. 

  • Brook Harty

    Lets look at what happened when Cingular bought AT&T, many people lost their jobs, the quality of the network went down, cingular didnt have to fight against att for customers so had no special offers, prices went up, .

    Thats the worst option, 1 GSM provider, with no competition. AT&T has shown it cant be trusted, no idea why we think they can be trusted now.   Do we never learn? Hello, MA Bell!? 1 GSM choice?!

  • Brook Harty

    Lets look at what happened when Cingular bought AT&T, many people lost their jobs, the quality of the network went down, cingular didnt have to fight against att for customers so had no special offers, prices went up, .

    Thats the worst option, 1 GSM provider, with no competition. AT&T has shown it cant be trusted, no idea why we think they can be trusted now.   Do we never learn? Hello, MA Bell!? 1 GSM choice?!

  • Anonymous

    No, this is one of those times where the goverment can’t step back and let this go through. 
    I’ve seen Cingular go bye, (my first cell phone company i used, which i instantly left once att ate that one) and Bellsouth (our most decent ISP company here) got swallowed up by ATT as well.

    Don’t gobble up more things, please….. 
    Competition is good. 

  • hsurferman

    Absolutely NO.  People have to realize that competition is the only thing that will improve what we have.  AT&T is already too big. 

  • Wireless Insider

    I appreciate the points of view on both sides of this arguement, but I think both are missing what is most important in the big picture.  The Economy is all that matters as it relates to this situation.  The reality is both AT&T and T-Mobile are currently in catch-up mode in trying ship as many jobs as possible over seas.  Verizon and Sprint already have all most all their jobs overseas that they can ship there.  As a T-Mobile insider I know that T-Mobile Global has a plan if the merger doesn’t through.  They going pocket the $3 Bil settlement at the parent company and will shut down T-Mobile USA.  The spectrum and towers will be sold off to the highest bidders.  AT&T and Verizon are the only ones that have the interest and the money to buy this all up.  Whether we like it or not eventually there will be only 2 Wireless Major Carriers with a bunch of Resellers.  We need to make the most of this deal now.  We need to allow the Merger with none of the typical restrictions.  Instead the FTC, FCC, and Congress need to work together to say “ok you can do this, but you must bring all your jobs back to Amercia immediately.  This has to be in writting and is AT&T doesn’t follow through it will be broken up into pieces.  Will this lead to slightly higher prices?  Yes.  Will this lead to a far better network and customer service? Yes.  Will this create 100,000 new jobs in America?  yes.

  • Wireless Insider

    I appreciate the points of view on both sides of this arguement, but I think both are missing what is most important in the big picture.  The Economy is all that matters as it relates to this situation.  The reality is both AT&T and T-Mobile are currently in catch-up mode in trying ship as many jobs as possible over seas.  Verizon and Sprint already have all most all their jobs overseas that they can ship there.  As a T-Mobile insider I know that T-Mobile Global has a plan if the merger doesn’t through.  They going pocket the $3 Bil settlement at the parent company and will shut down T-Mobile USA.  The spectrum and towers will be sold off to the highest bidders.  AT&T and Verizon are the only ones that have the interest and the money to buy this all up.  Whether we like it or not eventually there will be only 2 Wireless Major Carriers with a bunch of Resellers.  We need to make the most of this deal now.  We need to allow the Merger with none of the typical restrictions.  Instead the FTC, FCC, and Congress need to work together to say “ok you can do this, but you must bring all your jobs back to Amercia immediately.  This has to be in writting and is AT&T doesn’t follow through it will be broken up into pieces.  Will this lead to slightly higher prices?  Yes.  Will this lead to a far better network and customer service? Yes.  Will this create 100,000 new jobs in America?  yes.

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