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BLOG: US government tries to block AT&T and T-Mobile merger

Jan Dawson, Chief Telecoms Analyst, Ovum | Sept. 1, 2011
The Department of Justice's (DOJ) arguments against the merger have significant merit - T-Mobile has acted as a disruptive competitor in the market, pioneering new service plans and devices and putting significant competitive pressure on the three largest operators.

This is not the first case to be known as United States vs. AT&T - an earlier case in the late 1970s and early 1980s led to the breakup of the then-monopoly AT&T into eight separate companies. AT&T and other companies have been working hard over the last ten years to put many of those pieces back together, beginning with the mergers of Pacific Telesis, Ameritech and Southwestern Bell, and followed by the acquisitions of AT&T, BellSouth and Cingular by SBC. The fact that the Department of Justice is stepping in now is a sign that it wants to draw a line in the sand and forbid further consolidation among major players in the industry, and especially AT&T.

 

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