(Image Source: SlashGear)
BY ERIK SHUTE
AT&T’s $39 billion merger with T-Mobile must hurdle a few more roadblocks before signing on the dotted line -- seven more to exact.
“Seven state attorneys general joined the State Department antitrust suit to stop merger with T-Mobile and AT&T. They are concerned it would hurt competition.”
“DOJ suing to block the deal amended to add states, New York, Washington, Illinois, Massachusetts, Pennsylvania, bigger states, heavy hitters.”
At the heart of the suit is whether the merger would violate US anti-trust laws. One of the seven Attorney Generals, Eric Schneiderman of New York, says “no” to the mobile monopoly.
“This proposed merger would stifle competition in markets that are crucial to New York’s consumers and businesses, while reducing access to low-cost options and the newest broadband-based technologies.”
But not all seven are so rigid. According to CNET, Golden State Attorney General Kamala D. Harris says California is willing to compromise.
“I look forward to working with the parties involved to resolve this matter in a way that will create jobs in our state, encourage a vibrant technology sector, and protect competition in the marketplace.”
Former Congressman Rick Boucher says the merger would be good for states. He tells Web Pro News this merger could help fast-track U.S. broadband to 98% national coverage -- and check off another goal on President Barack Obama’s political docket.
“So the President’s goal is almost entirely fulfilled simply by allowing this merger to go forward. And I would simply note that the merger would be accomplished and broadband deployment would begin using entirely private money, it’s not tax support by any kind... I frankly don’t see a way the President’s goal of have 98% coverage by the end of his term can be reached with the absence of this merger.”
GigaOM reports AT&T has other states on its side. A spokesman for the mobile company explains,
“It is not unusual for state attorneys general to participate in DOJ merger review proceedings or court filings. At the same time, we appreciate that 11 state attorneys general and hundreds of other local, state and federal officials are publicly supportive of our merger.”
Other supporters include 15 Democratic lawmakers. According to the Wall Street Journal, they called on President Obama to approve the measure -- citing he cannot miss this opportunity to “embrace three job creation strategies” resulting from the merger.