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AT&T May Offer to Sell 25% of T-Mobile to Push Deal Through

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Sep 2, 2011, 7:18 AM   by Eric M. Zeman   @phonescooper

According to sources cited by Reuters, AT&T is preparing a two-stage plan in order to convince the government to allow its proposed acquisition of T-Mobile to proceed. First, AT&T is prepared to make guarantees that it won't raise the prices of T-Mobile's current voice/data services. One of the government's fears is that the acquisition would lead to more expensive services. Second, AT&T is said to be considering an asset sale of up to 25% of T-Mobile's spectrum and customer base. One of the major concerns voiced by the Justice Department is that the acquisition would lead to less market competition. It recently revealed that AT&T would control more than 50% of 17 different markets across the U.S. if the acquisition goes through. It's not clear who AT&T might sell such a large portion of T-Mobile's business to, as Verizon Wireless and Sprint would likely be ineligible for the same antitrust reasons. Regional carriers might not have the financial means to buy the assets. AT&T has vowed to fight the government's lawsuit.

more info at Reuters »
more info at PCMag »



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Too much government marufio Sep 2, 2011, 1:25 PM
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