(Image source: NYTimes/Bloomberg)

BY EMILY SPAIN

You're watching multisource tech video news analysis from Newsy.

Deal or no deal? After months in the making, the merger between AT&T and T-Mobile that would make it the biggest mobile company in the nation, just hit a giant roadblock, the U.S. government.

The Department of Justice filed suit Wednesday to stop AT&T’s $39 billion dollar purchase of No. 4 wireless carrier T-Mobile.  Why?  CNN reports -- the feds think it would hurt competition.

“A combined AT&T and T-mobile would have 130 million subscriptions along with Verizon they’d  control about 90 percent of the wireless market. So, that effectively takes out competition. Less competition often comes at the consumers expense.”

Sprint Nextel backs the DOJ saying -- blocking the merger will preserve jobs, the economy and
innovation. A writer for The Daily Caller sarcastically puts Sprint’s reaction this way...

“This translates roughly to ‘We think the merger would make the market more competitive. We were scared that we’d have to work harder to innovate and cut costs to keep our customers happy. Whew.’”

But hold the phone,  AT&T argues it was blind-sided by the DOJ’s action and the suit is blocking progress. The Communications Workers of America backs the merger with this statement, quoted by The NY Times’ Dealbook...

“The DOJ has filed suit to block a merger that will create as many as 96,000 quality jobs...the D.O.J. is looking to block a plan to build out high speed wireless access to 97 percent of the country should be opposed.”

There might be more behind the DOJ trying to break the deal. According to Bloomberg’s Peter Cook, this suit could set a precedent for future mergers.

“This was a template for the Obama administration given the size of the deal. If this deal were allowed to go through then it would be very hard for the Obama administration to stand in the way of other major merger transaction. So there’s a lot more a stake here than just this transaction.”

AT&T also has a lot to lose, not just its deal with T-mobile, but 3 billion dollars. Which has CNBC reporting-- the deal will be hard fought.

“The jumbo break-up fee here is the tall tale sign that this is going to be a long battle. It’s 3 billion plus and that says they’re not going to walk away.”

AT&T announced today it will bring 5,000 call center jobs back to the US if the merger goes through.

Transcript by Newsy.