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  (Source: androidevolutions.com)
AT&T is approaching smaller rivals such as Sprint and MetroPCS to sell spectrum and subscribers

Having recently learned that seven U.S. states joined the Department of Justice's (DOJ) effort to prevent the AT&T/T-Mobile merger, AT&T is now attempting to rescue its $39 billion deal by reaching out to smaller rivals like Sprint and MetroPCS.

AT&T announced its $39 billion purchase of T-Mobile from Deutsche Telekom AG in March 2011. Since then, AT&T has had trouble convincing the government that the merger would not kill competition and negatively affect consumers. On August 31, the DOJ filed a lawsuit against AT&T in an effort to terminate the deal, which it says would be anticompetitive.

Along the way, AT&T gained support from the Louisiana Public Service Commission as well as 11 state attorneys general, but also gained opposition from seven other U.S. states recently.

Now, AT&T is approaching smaller rivals in an effort to sell spectrum and subscribers, according to Bloomberg. Some of the rivals that AT&T reached out to were MetroPCS Communications, Leap Wireless International Inc., Sprint Nextel Corp., CenturyLink Inc. and Dish Network Corp.

Sprint filed an antitrust lawsuit against AT&T on September 6  to kill the merger, showing strong opposition to the deal that could kill competition such as itself.

AT&T is set to meet the DOJ in court on September 21. AT&T asked for an expedited hearing for the case because it will be required to pay a $6 billion penalty if the case isn't settled by September 2012.

Even if the case is settled with the DOJ, AT&T must also seek approval from the Federal Communications Commission for the merger to be complete. Otherwise, AT&T must pay Deutsche Telekom $3 billion in cash as well as wireless spectrum and roaming agreements.


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two things I see...
By cmdrdredd on 9/19/2011 5:47:46 PM , Rating: 2
quote:
The 11 state attorneys general supporting the merger are Arkansas, Alabama, Georgia, Kentucky, Utah, Mississippi, Michigan, North Dakota, South Dakota, West Virginia and Wyoming.


Those states are the states where AT&T is about the only service you can get or offers the best coverage. So of course they want it to expand.

Secondly, it seems AT&T is attempting to get around the possibility of their merger being blocked completely by buying up snippets of different networks.




RE: two things I see...
By tekzor on 9/19/2011 5:51:21 PM , Rating: 3
I'm surprised this deal isnt going through. Did ATT not pay off the DOJ?
The justice system still works?


RE: two things I see...
By cmdrdredd on 9/19/2011 6:00:02 PM , Rating: 5
Maybe the DOJ has used AT&T previously and got dropped calls.


RE: two things I see...
By cmdrdredd on 9/19/11, Rating: -1
RE: two things I see...
By retrospooty on 9/19/2011 8:21:58 PM , Rating: 2
I am quite positive it was a republican govt. that broke up AT&T in the first place. Nice rhetoric though =)


RE: two things I see...
By fstarnella on 9/19/2011 11:45:55 PM , Rating: 2
Wow, you really have no clue do you?


RE: two things I see...
By stburke on 9/19/2011 6:34:33 PM , Rating: 2
quote:
Those states are the states where AT&T is about the only service you can get or offers the best coverage. So of course they want it to expand.
Well I can't speak for the more southern states but I can tell you that AT&t only recently came into ND, SD, WY and much of UT after the Verizon purchase of Alltel when they were required to divest those customers purchased to AT&t to allow the purchase to go through. In fact, until then Verizon and Alltel were the only decent alternatives and sprint the lesser. AT&T wasn't even on the map.

http://www.cellularmaps.com/alltel_divest.shtml


RE: two things I see...
By cmdrdredd on 9/19/2011 8:19:26 PM , Rating: 2
I know for a fact that in KY you can get nothing except AT&T if you want it to work and then in eastern KY it hardly works at all and if it does you barely ever get 3G. So that's where I assumed my info from. I'm sure there's other areas like this. Verizon might be in better shape in those markets now than it was a few years ago though.


RE: two things I see...
By bigdawg1988 on 9/20/2011 10:48:01 AM , Rating: 2
Those states are the states where AT&T is about the only service you can get or offers the best coverage. So of course they want it to expand.

Well, BellSouth (then Cingular, then AT&T again) is based in Atlanta so I'm sure that's why they approved. Plus it's well known our PSC in GA can be bought.


RE: two things I see...
By johndiii on 9/19/2011 6:58:25 PM , Rating: 2
I don't know why Michigan is for the merger. I do know that it is not because of coverage. Their coverage here is AWFUL. We used to play a game with our boss who has an iPhone. The guys with Droids would stand in his office and call him and listen as it went straight to voicemail because his iPhone had no service. I will admit that AT&T service has improved in recent months, but it still can't hold a candle to Verizon or Sprint in the Grand Rapids metro area.


RE: two things I see...
By bradhall on 9/20/2011 10:29:41 AM , Rating: 3
quote:
We used to play a game with our boss who has an iPhone. The guys with Droids would stand in his office and call him and listen as it went straight to voicemail because his iPhone had no service.


Sounds incredibly fun! Do you guys go out and throw rocks at cars on your lunch break?


RE: two things I see...
By fic2 on 9/19/2011 7:19:53 PM , Rating: 3
I don't think they are trying to buy snippets. I think they are trying sell snippets of spectrum to smaller competitors.

Like feeding the hens before you slaughter them.


RE: two things I see...
By BSMonitor on 9/20/2011 12:48:27 PM , Rating: 2
Actually here in Michigan Verizon has the best coverage.

So I am gonna go out on a limb and say our Republican AG is to blame.


maybe there actually is a limit ....
By mac2j on 9/19/2011 7:49:23 PM , Rating: 4
Maybe you can't buy every branch of our government all the time. I really hope they actually do block this.

A 2-year old raised on nothing but Spongebob and Teletubbies could tell you this is grossly anti-competitive... it never even should have gotten this far.




By cohetedor on 9/19/2011 11:34:02 PM , Rating: 3
There is a limit, in how much in bribes they can disguise as campaign contributions and other incentives per year. With the election year in 2012 they'll just hold their "donations" until they get their way. Oh and before anyone goes after one party or the other, AT&T pays off both parties almost equally, they don't care about platform, just that they can keep their favorable near monopolies.


"Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine." -- Bill Gates














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