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Merger mayhem.

Months after AT&T announced its plans to buy T-Mobile, the Department of Justice (DOJ) has stepped in.

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The DOJ filed suit in late August to block the proposed acquisition. The department says that a merger between AT&T, the largest provider of mobile and fixed phone services in the U.S., and T-Mobile, one of the world's top mobile phone service providers, could have an adverse effect on consumers.

It said in an Aug. 31 press release that "the proposed $39 billion transaction would substantially lessen competition for mobile wireless telecommunications services across the United States, resulting in higher prices, poorer quality services, fewer choices and fewer innovative products for the millions of American consumers who rely on mobile wireless services in their everyday lives."

AT&T General Counsel Wayne Watts responded in an August press release that the company believes the facts will guide the final decision. "This merger will help solve our nation's spectrum exhaust situation and improve wireless service for millions. ... [It will] result in billions of additional investment and tens of thousands of jobs, at a time when our nation needs them most," he added.

A hearing was scheduled for mid-September.
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Author:Flahardy, Cathleen
Publication:InsideCounsel
Date:Oct 1, 2011
Words:198
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