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AT&T loses bid to buy T-Mobile USA

31 August 2011

Sprint wins as US government decides to block AT&T bid to buy Deutsche Telekom’s T-Mobile USA

Read more: AT&T Deutsche Telekom T-Mobile Sprint Verizon Wireless

The US Justice Department has killed off AT&T’s $39 billion bid to buy T-Mobile USA from Deutsche Telekom, saying that the deal would reduce competition and lead to higher consumer prices.
The department has effectively blocked the merger by filing a complaint in a US district court, saying that removing T-Mobile would take away a company that “places important competitive pressure on its three larger rivals” — AT&T, Verizon Wireless and Sprint.
Industry commentator Jeff Kagan said: “This is a big blow to AT&T, but if it happened it would have been a big blow to the entire industry.”

Kagan said that the deal is...