War for the Web
20 12.11

T-Mobile and AT&T

AT&T has officially withdrawn its bid for T-Mobile. The FCC frowned upon the merger from the start. The merger would take competition in the mobile phone and broadband market from four major competitors down to three, and would give AT&T a huge share of nationwide infrastructure.

AT&T argued that the new infrastructure would be better for the consumer, because AT&T would be able to provide better service with the new infrastructure. The FCC (along with most consumer advocacy groups) disagreed.

The FCC, Department of Justice, and Sprint all filed lawsuits to prevent the merger from happening. The FCC claimed that the deal would hurt consumers. The DOJ filed anti-trust paperwork specifically, and Sprint wanted to prevent the consolidation because it would essentially make them a non-competitor with Verizon and AT&T.

The Wall Street Journal has a great discussion of it here.

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