US Justice Department takes a close look at AT&T deal

28 Mar, 2011

The proposed $39 billion acquisition of T-Mobile by US telecoms giant AT&T is expected to be heavily scrutinised by the FCC and the US Justice Department. The biggest obstacle is likely to be focused on antitrust and competition issues as the deal will make AT&T the largest wireless carrier in the US. Indeed the deal is expected to take more than a year before it is officially rubber stamped and the end result is likely to have many strings attached in terms of divestment for AT&T. The recent announcement predictably provoked a robust response from AT&T’s rival Sprint. Sprint CEO Dan Hesse said “I do have concerns that it would stifle innovation, and too much power would be in the hands of two”. No doubt Sprint and AT&T’s other rivals will be seeking legal advice to stop the deal going through.

 

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