The Government of the USA blocked AT&T’s Purchase of T-Mobile Due To Anti-Trust Complaints

For now it seems to be the most reasonable move in the case. As it was reported, the Federal Department of Justice filed to block acquisition effort of AT&T to purchase T-Mobile for $39 billion. As a result of the bargain, AT&T would have monopolistic rights on the market, which violates anti-trust laws.

According to the United States Government statement, AT&T’s takeover of T-Mobile as an independent rival on the market would put a significant competitive strength out of the way and break conditions of effective competition as such. Maybe new smartphone monitoring software can help in this situation.

The process is still developing. Meanwhile Senators and Governors have already voiced a complaint of AT&T and Deutsche Telekom’s offer. At the same time, The Federal Department of Justice supported the concerns of the majority of the U.S. Government.

The case is a critical blow to AT&T and T-Mobile. However, it does not mean at all that hopes of both are dashed completely.

AT&T accuses the regulators that they manipulate facts in order to argue everyone into their point of view that this purchase will be harmful for the state. In fact, the main apprehensions of the federal regulators are in the possible huge job losses and reducing of the competition, as this merger will make AT&T almost monopolized carrier.

Is there a possibility for AT&T to get around regulator’s antitrust concerns? Taking into consideration that T-Mobile’s parent company Deutsche Telekom is not interested in staying in the US market anymore, the chances are high. In order to allay the concerns of the regulators AT&T is going to sell T-Mobile customers and wireless spectrum to second-tier wireless operator Leap Wireless, moreover, this carrier is able to buy T-Mobile without participation of AT&T.

Leap wireless, a part of Cricket wireless brand, offers “prepaid” services – it is not typical for large carriers that offer two-years subscriptions.