AT&T, T-Mobile Antitrust Probe Deepens: Report

WASHINGTON (Reuters) - The Justice Department has decided to pursue an in-depth investigation of AT&T's plan to buy of T-Mobile USA, according to a source familiar with the deal.

The decision was widely expected as antitrust enforcers typically give close scrutiny to big deals that involve large market shares.

Justice Department spokeswoman Gina Talamona declined to confirm that the antitrust division had deepened its probe. "Our investigation is ongoing," she added.

AT&T's $39 billion bid to buy Deutsche Telekom AG's T-Mobile USA would concentrate 80 percent of U.S. wireless contract customers in just two companies: AT&T/T-Mobile and Verizon Wireless, a joint venture of Verizon Communications and Vodafone Group Plc.

AT&T is currently the No. 2 U.S. mobile carrier behind Verizon.

In assessing whether mergers are legal, the U.S. Justice Department can take a quick look at a deal and approve it within 30 days, a process called an early termination. Or it can issue a so-called second request, indicating that the antitrust investigation is likely to be prolonged.

Because of the size of the AT&T/T-Mobile deal, and because the companies are major players, it was always expected that the Justice Department would take months before signing off on the deal or deciding to challenge it.

The Federal Communications Commission must also approve the deal before it can go forward.

AT&T Inc rivals like Sprint Nextel Corp -- in hopes of derailing the purchase -- have asked U.S. regulators to combine a review of AT&T's proposed purchase of T-Mobile USA with their examination of its plan to buy wireless airwaves from Qualcomm Inc.

AT&T agreed in December to pay Qualcomm $1.93 billion for airwaves.

Sprint, Cincinnati Bell Inc, MetroPCS Communications Inc and Ntelos Holdings Corp say the FCC should look at the cumulative impact of both deals to U.S. mobile competition, rather than running separate reviews.

(Reporting by Diane Bartz; Editing by Tim Dobbyn)

Copyright 2011 Thomson Reuters. Click for Restrictions

Comments

[edejan]

10:59 PM on 05/05/2011

Good. Hope they put a wrench in it.

[wrh2]

12:41 PM on 05/05/2011

THIS SHOULD NOT GO THROUGH IN LIGHT OF ATT POOR DSL SERVICE

[nanimal]

03:35 PM on 05/05/2011

IT SHOULD NOT GO THROUGH IN LIGHJT OF AT&T PRICE GOUGING. Monopolies hurt capitalism...they don't help

[brokerallen]

11:01 PM on 05/04/2011

Competition, a foundation of the American economic system, has been eroding for years. There is no way AT&T should be allowed to purchase T-Mobile. AT&T, along with Comcast, are positioning themselves to take control of the internet by controlled how much data can be uploaded and downloaded by individual subscribers. This will allow them to make hundreds of millions a year for adding nothing of value.

[fortressfountain]

09:55 PM on 05/04/2011

Seems funny my t-mobile bill went up 20 dollars just on the news of the merger with att and t.
Never a better time to switch.

[studmoose]

09:14 AM on 05/06/2011

Not mine!

[nixrox04]

09:38 PM on 05/04/2011

The investigation will be nothing more expensive window dressing for American consumers to convince them that real research determined that AT&T?T-Mobile deal is terrific!

Wink. wink.

[Mike Knell]

09:37 PM on 05/04/2011

I know for a fact that high level AT&T executives have been cooking the books to conceal problems in AT&T's underground infrastructure.

I can't help but wonder if AT&T is purchasing T-Mobile to hide debt caused by a defective landline infrastructure and lost sales to Comcast.

In my neighborhood, Comcast has taken over half of the land line phone service away from AT&T, and most of the internet and television service.

An internal AT&T document I photographed, proves that fact. See: http://mikeandmabell.com/FBI/History-More_Info-11.html

Regulators should look at the history of a man named Bernie Ebbers. He ran Worldcom, (a longdistance phone company). Then, he purchased MCI (another long distance phone company).

As a result of fraudulantly reporting profits, he was able to purchase MCI. Long story short, Worldcom went broke. Bernie Ebbers went to prison. Lots of people lost their jobs and their life savings. Kind of like Enron.

Now that Verizon offer the iphone, AT&T is losing customers to Verizon. AT&T could be the next Worldcom.

AT&T is trying to get a 20 billion dollar loan to purchase T-Mobile. How may customers does T-Mobile have?
Something doesn't seem right.

[studmoose]

09:15 AM on 05/06/2011

If you know that for a fact, perhaps you should be in Washington testifying in front of Congress?

[nana41]

07:51 PM on 05/04/2011

I love my T-Mobile so I'm hoping this deal doesn't go thru..