Government Shoots Down AT&T’s T-Mobile Acquisition



Good news. The government is trying to kill AT&T’s acquisition of T-Mobile. According to reports, the Department of Justice filed an antitrust suit against AT&T. They say that “AT&T’s elimination of T-Mobile as an independent, low-priced rival would remove a significant competitive force from the market.”

We talked about this before, and why it would be a bad thing. Basically, it was the old AT&T regrouping. They’ve managed to acquire many of the “Baby Bells” over time, and it seems as if they only plan on turning themselves into the massive telecom company that they once were.

This also would have meant fewer options for consumers. AT&T would have had control of the GSM market after having acquired the only GSM carrier in the US. We’re not trying to turn this into a slippery slope argument, but the other major concern brought up my many was that Verizon would eventually make a run to scoop up Sprint as AT&T grows by adding T-Mo’s subscriber base. As you can imagine, two major carriers running the show would allow for less competition as the smaller carriers would have very little chance of ever competing.

Sure, AT&T and T-Mobile are disappointed. We’re sure that they will both be more than fine regardless.

More on the acquisition:

Infographic AT&T Merger

4 things to know



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