It looks like AT&T’s plans to acquire T-Mobile might be coming to a halt. This morning, the Department of Justice has been reported to have filed a petition to block the takeover. According to the Department of Justice, the merger would “result tens of millions of consumers” facing fewer choices when it comes to picking a carrier, and will force them to pay higher prices. AT&T’s acquisition would also mean that there will be three companies with 90% of the market share of mobile services for consumers in the US, and “Preserving competition among them is crucial”.
With the US Department of Justice going against the deal, things don’t look too good for AT&T. After all, it sure seemed like the company was banking on the merger happening to proceed with its plans for the future, even T-Mobile was getting its phones compatible with AT&T’s frequencies in anticipation of it going through. I guess this puts a major bump in the road for the two carriers. I guess we’ll just have to wait and see what happens. Read the full transcript of today’s press conference at the WSJ.