Another Suit Filed Against Proposed AT&T Merger

AT&T has been fighting an uphill battle since announcing its attempt to acquire T-Mobile USA, leaving many to wonder if anyone outside of the two companies is in favor of the $39 billion merger.

Consumers have been blasting the acquisition since early May, with many filing comments with the Federal Communications Commission that argue the controversial purchase would result in a wireless duopoly with less competition that would only lead to higher prices.

Recently AT&T was hit with yet another lawsuit; this time from Ridgeland, Mississippi-based Cellular South, the nation’s largest privately held wireless provider. Joining the ranks of seven states, Sprint, and the Department of Justice, Cellular South filed its lawsuit in the same US District Court in D.C., where the additional cases against the multi-billion merger are currently pending. The most recent criticism alleges that the purchase will hurt competition, making it harder for regional carriers like Cellular South to secure not only competitive prices, times, and nationwide roaming, but also wireless devices.

According to claims made by the Department of Justice in its antitrust suit, the $39 billion acquisition would give AT&T control over almost half of the wireless market in a number of regions whilst controlling more than 50% of the market in no less than 15 cellular marketing locations.

While AT&T has vowed to battle the Department Of Justice in court, surfacing reports are indicating that the company has hunted for ways to pacify the US government by implementing certain compromises, including contacting smaller competitors to measure their interest procuring assets.

AT&T claims that the Department of Justice is ignoring the "significant competition" in the market, headed by regional carriers such as Cellular South and nationwide providers like Sprint, Verizon, MetroPCS. Both the Department Of Justice and AT&T are due in federal court on the 21st for a status meeting with Judge Ellen Huvelle and it is expected that they will also talk about the possibility of a settlement.

Although their opponents believe otherwise, AT&T has dismissed the Bellevue, Washington-based T-Mobile USA as a serious competitor. However, the company has had its fair share of struggles as of late; in addition to losing subscribers, it was announced that German parent, Deutsche Telekom AG, will no longer continue to make substantial investments in the US.

We'd like to know what you think; are you for or against the proposed merger?