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AT&T Responds to Justice Department Suit

Article Comments  56  

Sep 10, 2011, 8:54 AM   by Eric M. Zeman   @zeman_e

AT&T on Friday filed a more formal response to the Department of Justice's lawsuit against it's proposed acquisition of smaller rival T-Mobile. AT&T argues that competition in the market will actually suffer if it doesn't acquire T-Mobile. "Although the transaction will remove T-Mobile as an independent competitor, no significant consumer harm will result," AT&T said in its filing. "The Department does not and cannot explain how, in the face of all of these aggressive rivals, the combined AT&T/T-Mobile will have any ability or incentive to restrict output, raise prices, or slow innovation. Nor can it explain how T-Mobile, the only major carrier to have actually lost subscribers in a robustly growing market, provides a unique competitive constraint on AT&T." AT&T claims that "innovative upstarts" such as MetroPCS, Cricket Wireless, Cellular South, and U.S. Cellular represent a significant competitive threat to AT&T. AT&T also believes the Justice Department has overlooked how the acquisition will create efficiencies in the combined entity. AT&T closes by saying that by blocking the acquisition, the government will do more harm than good in the long run. "Without this merger, AT&T will continue to experience capacity constraints, millions of customers will be deprived of faster and higher quality service, and innovation and infrastructure will be stunted. If this transaction does not close due to Plaintiff's lawsuit, wireless consumers will, as the FCC Chairman predicts, increasingly face higher prices and lower quality."

source: AT&T

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Sep 12, 2011, 9:42 AM

AT&T Is Full Of Sh*t, And ALWAYS Has Been - HERE'S PROOF!

There's plenty of reasons why AT&T has ALWAYS been the lowest rated cellular service throughout the ENTIRE country by Consumer Reports, and that's in ALL AREAS including coverage, dropped calls, customer service, etc.

What I was put through by them as a 9/11 rescue worker was absolutely unconscionable!
http://www.epinions.com/content_62972399236 »

I'll NEVER forget my only New Years Eve at Times Square. I had just gotten hoodwinked by AT&T into the 1st national roaming and long distance plans at the time, Digital One Rate. I couldn't make nor receive a call to save my life while everyone around me with a Bell Atlantic (now Verizon) phone had no problems whatsoever making or receiving calls.

This company even had the balls to put a...
4 Things for you,
1. If you "paid your bill" like you claim, which you most likely didn't, you could have taken your bank statement to an AT&T store showing your final payment. If they match up that would have been corrected. AT&T like most carrier...

Sep 12, 2011, 10:02 AM

AT&T responds to justice department lawsuit

Why is AT&T complaining about THEIR lack of innovation? that sounds like a ME problem from their point of view. One of the main reasons why they want to obtain T-Mobile is for their blazing fast 4G network. looks like their FINALLY wanting to begin offering different platforms (such as the almighty ANDROID) instead of relying on the very diluted IPHONE 3,4,5,6,7...etc.

Dont worry, im sure they'll eventually get it right !
What you have to understand about AT&T is that their primary business is and has always been MARKETING FIRST and foremost, technological innovation second. Just like IBM.
---" Why is AT&T complaining about THEIR lack of innovation?"---

This has been my bone of contention for sometime. AT&T claims innovation will be stifled by not acquiring Tmobile. AT&T's innovation does not require another carrier. It has the girth...
Apperently you guys are a bit blind. 1. If AT&T was not trying to be innovative, why would they have made an exclusive contract with APPLE to get the iPhone for as long as they did. Other carriers had their shot before AT&T did and turned it down. Al...

Sep 10, 2011, 10:35 AM

i agree with ATT !

remember "the most dropped calls" belongs to att?
or how the iphone bog down the att network?
in the long run, as more and more people use cellphone, att network will only get worse if there is no merger!
with merger, you will able to access BOTH att and tmobile towers!
sure, att might raise their price, but you get what you paid for!
if you dont want to pay more, just get Sprint! Sprint gives you unlimited talk, texts and web for 35$ a month!

do you know how many car manufacturers out there?
and Mercedes still able to sell their cars so much more than others?
you get what you paid for!
One thing is...about the same time that AT&T's overall bog-down happened is when T-Mobile stopped using AT&T partner cov. and visa versa. As a whole they did great. Individually, both companies suffered. My brother has T-Mobile and has a city map of w...
Oh my... you post the same argument that I rebutted earlier? Here... reread it again:

https://www.phonescoop.com/articles/discuss.php?fm=m ... »

Please, stop using this car manufacturer argument, you just sound foolish.

---" "the most dropped calls" belongs to att? or how the iphone bog down the att network?"---

Two things:

Because of GSM's designed technology, it has more dropped calls over CDMA. It has very little to do with AT&T and Tmobile operating seper...
...the difference between a Sprint owned MVNO and Sprint you should consider no longer posting on this website in an attempt to argue anything.

Also, the car analogy doesn't work either. Maybe just stick with the phrase, "you get what you pay for"?...
"Sprint gives you unlimited talk, texts and web for 35$ a month!"

no they don't. Hell, their employees don't even get this type of plan.
If you are saying Boost offers this, it's still not Sprint. Boost is Pre-Paid. Not Post-Paid. If you are an a...

Sep 11, 2011, 9:35 AM


AT&T can come to a sort of compromised medium where price plans do not change radically from what T-Mobile already has in place, the overall merger would not be that bad.
Practically all of T-Mobiles subsribers stay with T-Mobile for the better customer service and plans.
De La Vega needs to understand this and implement this once the merger if and when it goes through.

Sep 10, 2011, 9:23 PM


They basically just threatened that if this doesn't get approved, they are gonna provide even crappier service. Wow. Guess it hasn't occurred to anyone in at&t to just use that 40 billion to..I dnt know...work on their network.

Sep 10, 2011, 8:55 PM

by Shutting off the governments phone and internet

ATT spokeman says we can make merger love with whoever we want too!

Verizon and Att to merger Tuesday


Sep 10, 2011, 2:27 PM

the "competition" argument...

Give AT&T credit for having the audacity to put forth effectively this "competition" argument...

AT&T: Don't you get it? Acquiring T-Mobile would not be anti competitive because T-Mobile is very little competition to AT&T. Our anti competitive actions over the past five years have already taken care of that.


Sep 10, 2011, 11:59 AM

You see. We have to kill them, so they survive.

They're comin' right for us!

Sep 10, 2011, 11:47 AM

Whiskey, Tango, Foxtrot....A Fee & Fee is so full of it.....

AT&T argues that competition in the market will actually suffer if it doesn't acquire T-Mobile....Huh? Then they go on and say they need to be able to acquire T-Mobile because of network constraints. Hey sharpies at ATT, BUILD OUT YOUR OWN NETWORK! They have the capacity & money to build it out but CHOOSE not to spend the money. Then they also threaten their customers that their service will suffer and rates will have to be increased if the government doesn't allow this. Again, huh? If you choose to punish your customers if this doesn't pass, I can think of a few other companies that would be glad to actually serve your customers. As to the "fierce competition", ATT is FIVE TIMES larger than Cricket, Metro & US Cellular COMBINED right...

Sep 10, 2011, 9:06 AM


AT&T seems completely unprepared for the possibility that this deal might not just breeze through.

Sep 10, 2011, 9:03 AM

Cough Cough

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