Court Delays AT&T Merger Hearing

Cristal Reyes

Companies have always bought out other companies all throughout financial history.  One type of business that is notorious for doing this is the cellular business. For example, Sprint merged with Nextel, and AT&T merged with Cingular (Remember them?).

As of March 2011, AT&T had made a bid to buy T-Mobile USA for a whopping 39 billion dollars. This merger, if complete, would make AT&T the largest cellular company. Also, this would actually re-shape the whole industry.

So what’s the problem? The U.S courts won’t allow it. The Justice Department has filed a suit on Wednesday in order to put a blockade forward.  At a news conference, James Cole (Attorney General) stated, “The department filed its lawsuit because we believe the combination of AT&T and T-Mobile would result in tens of millions of consumers all across the United States facing higher prices, fewer choices, and lower quality products for their mobile wireless services.”  The courts believe also that T-Mobile has introduced new technology, and if it is merged then consumers won’t have enough options and would be forced to pay outrageously high prices.

Even though the trial has been delayed until February 2012, AT&T is hopeful that an agreement will be established. Many supporters of the merger argue that America is a hand’s off nation when it comes to business. In addition, if other cellular companies merge, then why can’t AT&T and T-Mobile do the same? This deal has been controversial since the beginning and is predicted to have an ending that will shock the world.