Business Tech

Justice Department Blocks AT&T and T-Mobile Merger

On Wednesday, the Justice Department filed a suit to block AT&T’s $39 billion deal to buy T-Mobile USA. The suit stated that the combination of two of the top wireless carriers would reduce competition and therefore raise prices for consumers.Deputy Attorney General James Cole said that it would result in “tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services.”

A failure of this deal would put T-Mobile in a compromising position. The company already struggles to compete with its larger competitors, and owner Deutsche Telekom has already stated its unwillingness to invest any more money into the venture. AT&T, T-Mobile, Sprint and Verizon are the four providers that make up more than 90% of wireless connections nationwide. A $3 billion cash deal has been promised to T-Mobile by AT&T if the merger does not go through.

Follow Us

Subscribe to Our Newsletter

What's Next, Updates & Editorial Picks In Your Inbox

Related Articles

© 2017-2021 Advisors Magazine. All Rights Reserved.Design & Development by The Web Empire

Search