AT&T, T-Mobile prepare to fight for merger
AT&T Inc., Deutsche Telecom AG and T-Mobile USA Inc. have amassed an army of former senior government antitrust officials to try to save their $39 billion deal to combine wireless businesses, Reuters reported.
Questions abound for all sides: How strong is existing antitrust law? Can competition survive with the combination of two large wireless carriers? And if the Justice Department succeeds in blocking the merger, will AT&T have to pay $6 billion in cash and wireless airwaves as a breakup fee to T-Mobile?
Several of the lawyers who make up the legal dream team for the wireless companies previously worked in top roles at either the U.S. Justice Department’s antitrust division or the Federal Trade Commission’s competition bureau.
Last month, the Justice Department sued to block the acquisition of Deutsche Telekom’s T-Mobile USA unit, the No. 4 U.S. wireless carrier, by AT&T, which ranks second in the market. The companies hope to settle so the deal can close.
AT&T officials were adamant in interviews earlier this year with the Business Record that the merger would help 4G LTE broadband coverage in Iowa in ways that haven’t been done before. For that story, click here.