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  • Pressure Mounts from US Lawmakers to Block AT&T Takeover of T-Mobile


    For several weeks, speculation about US lawmakers intervening in the proposed AT&T takeover of T-Mobile had largely died down. But this morning, Capitol Hill is buzzing with chatter of the pending $39 billion deal following yesterday's impassioned comments from Sen. Herb Kohl, chair of the Senate’s Antitrust Subcommitteee.

    ”I have concluded that this acquisition, if permitted to proceed, would likely cause substantial harm to competition and consumers, would be contrary to antitrust law and not in the public interest, and therefore should be blocked by your agencies,” Senator Kohl said on Wednesday.

    What's interesting about Kohl, however, is that he famously supported the Comcast joint venture with NBC Universal - never uttering a word about possibly blocking the deal. But now the game has changed. How so? Kohl is retiring from the Senate next year and, according to Washington insiders, has become a bit of a "free spirit."

    "Kohl is the first of influential lawmakers to say the deal should be rejected," the Washington Post reported yesterday. Although one lone man cannot block the merger, it appears that Kohl's stance has motivated some of his colleagues in the House of Representatives to take up his side of the argument too.

    In a public letter to the FCC and the Justice Department this week, Rep. Anna Eshoo, Rep. Edward Markey, and House Judiciary ranking member Rep. John Conyers, wrote the following: “We believe that AT&T’s acquisition of T-Mobile would be a troubling backward step in federal public policy–a retrenchment from nearly two decades of promoting competition and open markets to acceptance of a duopoly in the wireless marketplace. Such industry consolidation could reduce competition and increase consumer costs at a time our country can least afford it.”

    Source: Washington Post
    This article was originally published in forum thread: Pressure Mounts from US Lawmakers to Block AT&T Takeover of T-Mobile started by Michael Essany View original post
    Comments 15 Comments
    1. jOnGarrett's Avatar
      jOnGarrett -
      Some of this logic should be applied to all the frivolous lawsuits apple files to stop competition.
    1. trimetfan's Avatar
      trimetfan -
      So it's ok to let T-Mobile die on the vine? What about T-Mobile users? They don't use cad phones.
    1. RICO_'s Avatar
      RICO_ -
      Apple waiting silently. Once AT&T acquires T-Mobile, I expect Apple to acquire AT&T in a blockbuster world-shocking move.

      Apple Mobile.
    1. Stephen.'s Avatar
      Stephen. -
      Quote Originally Posted by jOnGarrett View Post
      Some of this logic should be applied to all the frivolous lawsuits apple files to stop competition.
      You cant stop apple from suing everyone. It's just a matter of whether they win or simply annoy the other party legally, enough for them to stop whatever its about.
    1. ApertureSci3nce's Avatar
      ApertureSci3nce -
      Quote Originally Posted by RICO_ View Post
      Apple waiting silently. Once AT&T acquires T-Mobile, I expect Apple to acquire AT&T in a blockbuster world-shocking move.

      Apple Mobile.
      Apple Mobile I can see it now hahaha
    1. Mes's Avatar
      Mes -
      AT&T + T-Mobile = GSM monopoly in the USA.

      Sprint and Verizion use CDMA.
    1. teej1410's Avatar
      teej1410 -
      Quote Originally Posted by Mes View Post
      AT&T + T-Mobile = GSM monopoly in the USA.

      Sprint and Verizion use CDMA.
      Yep. Being a T-Mobile user, I don't want to have AT&T merge. I think T-Mobile is better.
    1. cloudxvii's Avatar
      cloudxvii -
      Quote Originally Posted by Mes View Post
      AT&T + T-Mobile = GSM monopoly in the USA.

      Sprint and Verizion use CDMA.
      Exactly. For those of us who prefer GSM over CDMA, ATT-Mobile will become the ONLY GSM carrier in the States. While there is still competition for cellphone carriers in general, ATT-Mobile would eliminate all GSM competition.

      As a Tmobile customer, I seriously hope they don't merge. Even though I'm stuck with Edge on my iP4, I pay 5$ a month for unlimited data on my line. In most of Southern California, coverage is pretty great too, so I usually have 4-5 bars. If this goes through, I won't even be able to use my iP4 freely without data. Previously, I didn't need data, so I didn't have it added on, so I didn't end up paying extra on my bill. ATT is ridiculously strict about this -- unlocked smartphones, phones from overseas, etc, must all have a smartphone data plan, regardless of whether or not it's ATT. Meh. Don't want this to happen.
    1. pldtboy's Avatar
      pldtboy -
      That's the reason why we left AT&T. They won't let us use our unlock Iphones without a data plan. Now we're saving a lot by going with TMobile, 4 lines less than $100/month with unlimited data and text messaging on the 3 lines. I don't think AT&T will offer the same.
    1. Lakunsta's Avatar
      Lakunsta -
      Quote Originally Posted by RICO_ View Post
      Apple waiting silently. Once AT&T acquires T-Mobile, I expect Apple to acquire AT&T in a blockbuster world-shocking move.

      Apple Mobile.
      Well Said
    1. havoc0351's Avatar
      havoc0351 -
      Quote Originally Posted by jOnGarrett View Post
      Some of this logic should be applied to all the frivolous lawsuits apple files to stop competition.
      Good call
    1. RICO_'s Avatar
      RICO_ -
      Just think about it..... Apple has nearly $80 billion in cash.....growing every single quarter. They just bought 58% of the Nortel patents for a relatively small couple billion dollars. They're also extremely secretive.

      The expansion of their Cupertino headquarters will be a small percentage of their cash on hand. And does anybody even know WHY they are expanding their headquarters?

      Add it all up....and it sure does seem like Apple is planning something big for the near future. But that's just my theory.
    1. DaLsim's Avatar
      DaLsim -
      Quote Originally Posted by ApertureSci3nce View Post
      Apple Mobile I can see it now hahaha
      All i see, If crapple-apple take over t-mobile. It'll be the end of family and unlimited plans...
    1. Turnamental's Avatar
      Turnamental -
      Quote Originally Posted by jOnGarrett View Post
      Some of this logic should be applied to all the frivolous lawsuits apple files to stop competition.

      +1
    1. 4n4c0nd4's Avatar
      4n4c0nd4 -
      From a business standpoint, I think Apple would be foolish not to snatch T-Mobile up out from under AT&T. That would be a great way to enter the cellular market with an already functioning business model in place. Think about it...the iPhone 4 costs $187.51 to manufacture, so even with the reduced pricing($199/$299), combined with a 2-yr contract, they are still making a profit on the phone purchases. Then add in the profit for services for the 2 years. It's a double win in my opinion.

      Furthering my Devil's Advocate stance with a fantasy suggestion...

      Buy T-Mobile, make ALL future iPhone purchases exclusive to T-Mobile only and, well, it would undeniably get very interesting...and VERY profitable for Apple.

      Yes, I know...fantasyland, but I thought it was funny.