The US Department of Justice has filed a fedral lawsuit to block AT&T’s acquisition of T-Mobile USA on antitrust grounds, saying the deal was bad for consumers and unnecessary for AT&T to build out its network.

“AT&T’s elimination of T-Mobile as an independent, low-priced rival would remove a significant competitive force from the market,” the Justice Department said in its suit.

T-Mobile USA a subsidiary of Deutsche Telekom(German telecom) was auctioned in march and AT&T bid $39 billion.This acquisition would make AT&T the largest wireless company in the US. AT&T and T-Mobile are the second and the fourth larget telecom providers in USA respectively.This new merger would be about a third larger than Verizon Wireless, the current top carrier, and more than twice as large as Sprint at number three.

“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 mobile wireless services,” Deputy Attorney General James M. Cole said in a statement. “Consumers across the country, including those in rural areas and those with lower incomes, benefit from competition among the nation’s wireless carriers, particularly the four remaining national carriers. This lawsuit seeks to ensure that everyone can continue to receive the benefits of that competition.”


Source: cnet