Madigan Joins DOJ Lawsuit To Block AT&T Acquisition Of T-Mobile

CHICAGO (STMW) — Illinois Attorney General Lisa Madigan joined the federal government Friday in its effort to block AT&T Inc.’s proposed acquisition of T-Mobile USA Inc.

The Department of Justice filed the civil antitrust lawsuit in U.S. District Court for the District of Columbia on August 31. On Friday, Illinois and six other states joined as plaintiffs.

“The proposed $39 billion transaction would substantially lessen competition for mobile wireless telecommunications services in Illinois and across the United States,” Madigan said in a release from her office. “Blocking this acquisition protects consumers and businesses against fewer choices, higher prices, less innovation, and lower quality service.”

AT&T’s acquisition of T-Mobile would reduce the number of national competitors to three and according to Madigan’s office eliminate a company whose low pricing and product innovation have made it an aggressive competitor in the mobile wireless telecommunications marketplace.

Four nationwide providers – AT&T, T-Mobile, Sprint and Verizon – account for more than 90 percent of mobile wireless connections, the release said. According to the complaint, AT&T and T-Mobile compete head-to-head nationwide. They also compete nationwide to attract business and government customers. In addition, wireless customers across the country face similar choices from the four national competitors regardless of whether local or regional carriers also compete in any particular local area.

The complaint also describes the competitive limitations of regional providers, resulting from their lack of national networks. Similarly, it concludes that entry by a new provider would be difficult, time-consuming, and expensive, requiring among other things nationwide spectrum, the construction of a nationwide network, scale economies arising from having tens of millions of customers, and a strong brand.

The complaint also concludes that the defendants have not been able to demonstrate merger-specific benefits that would sufficiently outweigh the proposed merger’s anticompetitive effects.

AT&T entered into an agreement on March 20, 2011, to purchase T-Mobile’s stock from its parent, Deutsche Telekom AG, with the intent to combine the two companies’ mobile wireless telecommunications businesses.

(Source: Sun-Times Media Wire © Chicago Sun-Times 2010. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)


    I am AT&T customer in Naperville, Illinois from September 2010 to current.My residencial telehone and Internet bills till June according to them is $2000 over and they have yet to settle. It is absurd and their operation is very poor, their communications between different department chaotic to put it simply. With this type of infrastructure, if they monopolise wireless market, it will be disastrous for the consumers. This is not isolated case. There are several cases which was takenup by Chicago Tribune correspondents almost every month.
    My complaint with ICC Illinois and FCC washington is still under investigation about their how they operate. You can use it and I have all the papers sent to them. For Illinois, they can refer ICC Illinois to see what is my complaint. They have money, but they do not have capability to handle professionally.


    I was an AT&T customer. I had telephone, internet and t.v. service with them. I had a promise in writing that my prices would never go up. Guess what they went up and I go them out of my house. AT&T specialty is high prices and poor service.I had a problem with a freezing television screen which they were never able to correct. Their customer service are a bunch of arrogant idiots. Their answer to me was prices rise without notice.I went to COMCAST and they are no better. So good bye COMCAST.


    I was an AT&T customer. I had tv, internet and phone service with them. I had a promise in writing that my prices would never go up . Guess what they went up and when I called their customer service they said prices change without notice.I kicked them to the curb. I went with comcast and they are no better. I am searching for new services right now.AT&T specialty is high prices and poor service.

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