U.S. Government Moving to Block AT&T's Acquisition of T-Mobile

[daxomni]

I have thought of that.
The issue is the anti-trust regulators are failing to see the bigger picture.
T-Mobile USA is already dead in the water.
The parent company has alraedy cut off funding and is not longer investing in T-Mobile USA for expansion.
The DOJ can't force a company to remain in business.
They have a very fair offer on the table from a buyer, AT&T.
Sprint doesn't have the cash, so they cry like a baby about it.
I don't think the feds want to take on the role of providing a government owned carrier as a 4th option.

What made them decide 4 carriers was the magic number?

If they wanted consumers to have more options, why did they let Verizon merge with AllTel?

Verizon had to spin off assets and customers for the deal to go through.
AT&T has agreed to do the same.

Metro PCS is ready to pick up $4 billion in T-Mobile USA assets and spectrum from AT&T if the deal goes through. Hell, DT even offered financing to Metro PCS to help solidify the deal.

Unless I am mistaken the Verizon-Alltell deal was authorized by the previous administration during the time they still held sway over the Justice Department. So, in essence you're asking the current administration to explain the actions of the administration that came before them. Presumably the current administration would have prevented the Verizon-Alltell merger as well but my understanding is that the merger had already been completed by the time the current administration had entered power.

 

[rjohnstone]

Also, the DOJ whole premise here is to avoid a monopoly, not making sure T-mobile stays in business.

According to Bloomberg news, one of the private attorneys the DOJ hired is claiming otherwise.

“Spinning off some of T-Mobile’s customers or network doesn’t really remedy the government’s issue with the merger, which is that T-Mobile is such a disruptive and significant competitor that anything which makes them no longer independent would be unacceptable,” said Glenn Manishin, a lawyer with Duane Morris LLP in Washington.

 

[Rodimus Prime]

I have thought of that.
The issue is the anti-trust regulators are failing to see the bigger picture.
T-Mobile USA is already dead in the water.
The parent company has alraedy cut off funding and is not longer investing in T-Mobile USA for expansion.
The DOJ can't force a company to remain in business.
They have a very fair offer on the table from a buyer, AT&T.
Sprint doesn't have the cash, so they cry like a baby about it.
I don't think the feds want to take on the role of providing a government owned carrier as a 4th option.

What made them decide 4 carriers was the magic number?

If they wanted consumers to have more options, why did they let Verizon merge with AllTel?
Verizon had to spin off assets and customers for the deal to go through.
AT&T has agreed to do the same.
Metro PCS is ready to pick up $4 billion in T-Mobile USA assets and spectrum from AT&T if the deal goes through. Hell, DT even offered financing to Metro PCS to help solidify the deal.

you missed another likely optoin. Someone else buying them up at the fire sell price. AT&T if blocked from this merger will all be banned from buying them up in bankruptcy.

Things are bad enough with Verizon and AT&T. If AT&T buys up T-Mobile we would be left with 2 carriers. Sprint would be way to small to even compete and you know Verizon would go after them next using the T-Mobile/AT&T merger to justify it.

It needs to be blocked. Have another company buy up T-Mobile.

 

[rjohnstone]

you missed another likely optoin. Someone else buying them up at the fire sell price. AT&T if blocked from this merger will all be banned from buying them up in bankruptcy.

Things are bad enough with Verizon and AT&T. If AT&T buys up T-Mobile we would be left with 2 carriers. Sprint would be way to small to even compete and you know Verizon would go after them next using the T-Mobile/AT&T merger to justify it.

It needs to be blocked. Have another company buy up T-Mobile.

That's the issue... there is no other company with the ability to buy T-Mobile USA and keep them intact.
Sprint bet the farm in the iPhone. They have no cash or reserves to buy anything for then next 2-3 years.

Agreed, AT&T could be blocked from buying the entire company when it's in bankruptcy.
But AT&T could still grab the spectrum and/or some of their primary backhaul lines in a bankruptcy sale, which is what they are really after in the first place.
No law can prevent them from buying these individual assets if they're offering fair market value for them.

 

[Rodimus Prime]

That's the issue... there is no other company with the ability to buy T-Mobile USA and keep them intact.
Sprint bet the farm in the iPhone. They have no cash or reserves to buy anything for then next 2-3 years.

Agreed, AT&T could be blocked from buying the entire company when it's in bankruptcy.
But AT&T could still grab the spectrum and/or some of their primary backhaul lines in a bankruptcy sale, which is what they are really after in the first place.
No law can prevent them from buying these individual assets if they're offering fair market value for them.

But the law could. Anything AT&T buys has to be approved. I could see a group buying them up. For example T-Mobile might merge with a company like Cricket.

 

[MagnusVonMagnum]

Dudes, it's the EPA's fault! If we get rid of the EPA, all these companies will succeed and T-Mobile would be a huge profit maker along with all those power companies that provide the electricity we need to power all our electronic equipment! Everyone will breathe better more carbon filled air (which we all know helps plants, as does things like DDT!) It's the flipping EPA that has ruined this country, sending our jobs to China! If only they'd wipe out the EPA, we'd all live 100 years longer with all that lead in our diet (which renews youthful vigor*) and we'd be winning the trade war with China!

* This claim has not been verified by the EPA since we soon hope the EPA will no longer exist and we can say and do anything we want. This message brought to you by the Corporate Trust of America for a greedier future.