Monday, September 12, 2011

AT&T Files Response to Department of Justice Lawsuit


AT&T has filed a response to the Department of Justice lawsuit to prevent its acquisition of T-Mobile, reports Physorg.com.






AT&T claims the DOJ's analysis reflects a misunderstanding of the market. They say T-Mobile isn't a significant competitive threat to AT&T and has been losing market share in recent years, a trend which will discourage Deutsche Telekom from investing further in the carrier.

In contrast, AT&T says it spent more than $30 billion in network upgrades from 2008 through 2010, yet still can't keep up with customers' growing demand to transfer data over phones and other wireless devices, according to the court documents. But if it can snap up T-Mobile, AT&T believes the added capacity will put it in a better position to deliver better services. AT&T already has pledged to invest at least $8 billion and transfer 5,000 jobs currently in overseas call centers back to the U.S. if the T-Mobile purchase goes through.

The company also says that, "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."








I didn't have time to check out all your blog this weekend, but ill get around to it tonight after class and make a new post on my graffiti blog.



14 comments:

  1. Interesting news, thanks for sharing. We'll see how this AT&T "monopolization" issue turns out.

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  2. It all comes to money, when the DoJ considers the state will get it's fair share, the merger will go through.

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  3. AT&T will hopefully fail with this. They're becoming way too greedy buying up all this competition they don't need. Guarantee the merger will still go through regardless, competition's only to be encouraged by others if they're not seeing any benefits from the potential mergers forming monopolies and AT&T will be able to offer some kind of benefits for the guys trying to monitor this.

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  4. Yeah.... Something tells me that even if AT&T succeeds with this it won't do them any good in the long run.

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  5. Fuck AT&T for trying to buy up the market.

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  6. I wonder how this will affect their share price...

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  7. AT&T thinks it's way better than it really is..

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  8. There is a fine line between monopolies and successful products leading the market share. I just don't see AT&T as having a successful product. Hopefully the market (you and me) will put them in their rightful place as a second tier option.

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  9. Intense!
    Check me out =) alphabetalife.blogspot.com

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  10. Nice threats they're throwing around. Temper tantrums aside, if they're not willing to do upgrades without this merger they'll be the ones suffering in the end. Will be sweet watching them tank again if that's the case.

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