AT&T issues statement on Department of Justice action

Shortly after the U.S. government moved to block AT&T’s (Dallas, Texas, U.S.A.) $39 billion deal to buy T-Mobile USA, a unit of Deutsche Telekom AG (Bonn, Germany), AT&T issued a statement making it rather apparent that the service provider did not know about the governments intensions beforehand.

In the statement AT&T says they are “surprised and disappointed” by the government’s actions, especially after AT&T met with the Department of Justice (DOJ), who gave no indication that an action was being considerate by the government.

AT&T went on to say that they will ask for an expedited hearing, and that the DOJ is the one with the burden of proving alleged anti-competitive affects for the merger.

“We intend to vigorously contest this matter in court,” said Wayne Watts, senior executive vice president and general counsel at AT&T. “At the end of the day, we believe facts will guide any final decision.”

According to the statement, the merger will solve the U.S. spectrum exhaust situation, allow AT&T to expand 4G LTE mobile broadband and add additional jobs and investments.

According to a Reuters report, two other big communications deals, MCI's proposed takeover of Sprint in 1999 and EchoStar Communications Corp's deal to buy Hughes Electronic Corp's DirecTV in 2001, fell apart after the Justice Department challenged the deals.

If the decision is blocked by the court, AT&T would have to pay a breakup fee estimated at $6 billion, including $3 billion in cash, spectrums and a roaming agreement for T-Mobile USA.

ArticleTools

Featured Reports

Content Delivery Networks (CDN) 2015
Content Delivery Networks (CDN) represent large distributed system of servers deployed in multiple data centers across the Internet. CDNs provide solutions for efficiently and effectively managing content of all types. Solutions include core services such as aggregation, management, and distribution of content as well as a variety of value-added functionality.

 

Cable Carrier Wi-Fi: MSO Take MNO Market Share
How does a cable provider gain a bigger piece of the telecom market pie chart? With a clever Wi-Fi strategy, cable providers are in a unique position to dominate the residential and business telecommunications markets. This is the portent of things to come in the very near future: an MSO as MNO play.

 

Structured and Unstructured (Big) Data in Telecom Analytics
This report provides the reader with a broad understanding of telecom data (structured and unstructured/big data) and related analytics. The report identifies market drivers and opportunities as well as forecasts for certain key growth areas such as deep packet inspection.

 

Affordable Market Reports on Big Data, IoT, CDN & More!
Access the exclusive new series of market research reports brought to you through the partnership of Mind Commerce research and TelecomEngine.com.
Browse the latest titles

 

 

Featured Events & Partners

The Telecom Exchange (TEX)
Wednesday, June 24, 2015

Cipriani Wall Street, New York City

Designed to navigate enterprise and carrier network operators through all carrier hotels and colocation houses available in the US and globally.

Visit event website...