A federal judge has kicked off the hearing process on the Department of Justice’s complaint against ATT’s T-Mobile bid.
Judge Ellen Huvelle has ordered ATT and the Justice Department to be present at a hearing on September 21. The conference will allow the parties to “discuss the prospects for settlement,” according to The New York Times, which first reported on the hearing.
The possibility of a settlement being struck between the Justice Department and ATT has been rumored as of late. Last week, Reuters reported that ATT might agree to divest up to 25 percent of T-Mobile USA’s assets, including wireless spectrum, in order to make its $39 billion acquisition bid more amenable to government regulators.
Related stories:
Justice Dept. to block ATT’s T-Mobile deal
ATT looks to make a deal with DOJ on T-Mobile (report)
Sprint files suit to block ATT’s T-Mobile merger
However, whether or not the Justice Department would accept such a deal remains to be seen.
Last week, the Justice Department said in a statement accompanying its announcement of its suit to block the merger between ATT and T-Mobile USA that it believes a combined ATT and T-Mobile could harm both competition in the wireless industry and consumers.
“The combination of ATT and T-Mobile would result in tens of millions of consumers all across the United States facing higher prices, fewer choices, and lower-quality products for mobile wireless services,” Deputy Attorney General James Cole said in a statement announcing the Justice Department’s decision. “Consumers across the country, including those in rural areas and those with lower incomes, benefit from competition among the nation’s wireless carriers, particularly the four remaining national carriers. This lawsuit seeks to ensure that everyone can continue to receive the benefits of that competition.”
But ATT has more to worry about than the Justice Department. Just yesterday, Sprint announced that it too had filed suit over ATT’s T-Mobile merger, claiming it violates the Clayton Anti-Trust Act. The complaint, filed with the U.S. District Court for the District of Columbia, argues that a merger between ATT and T-Mobile is “brazenly anticompetitive.”
Amid the lawsuits, ATT must also not forget about the Federal Communications Commission. That government branch has yet to make its final determination on the deal, but seemed to indicate last week that it wasn’t pleased with what it has seen so far.
“By filing suit today, the Justice Department has concluded that ATT’s acquisition of T-Mobile would substantially lessen competition in violation of the antitrust laws,” FCC chairman Julius Genachowski said in a statement following the Justice Department’s lawsuit announcement. “Competition is an essential component of the FCC’s statutory public interest analysis, and although our process is not complete, the record before this agency also raises serious concerns about the impact of the proposed transaction on competition.”
For its part, ATT has stuck by its contention that the deal is good for both the industry and consumers.
“At the end of the day, we believe facts will guide any final decision and the facts are clear,” an ATT spokesman told CNET last week. “This merger will help solve our nation’s spectrum exhaust situation and improve wireless service for millions; allow ATT to expand 4G mobile broadband to another 55 million Americans, or 97 percent of the population; [and] result in billions of additional investment and tens of thousands of jobs, at a time when our nation needs them most.”
ATT declined CNET’s request for comment on the September 21 hearing.
Your article really piqued my curiosity. I had to consider some of your unique ideas in order to think about them a bit. I agree in part with your views. Thank you for interesting content.
I was very surprised when I found this article. Thank you for this informative content and expressing your views. This is very good quality work.
Your article swept me away with its vast information and great writing. Thank you for sharing your views with such passion. I like your views.