AT&T customers attempt to block T-Mobile merger

By on July 25, 2011, 11:00 AM

Back in March it was announced that the second largest wireless provider, AT&T, would be acquiring 4th ranked T-Mobile USA to the tune of $39 billion. Pending the merger, AT&T would overtake Verizon Wireless as the largest U.S. wireless carrier.

It’s not uncommon for rival companies to try and keep the competition from creating a monopoly over a given industry, but this time a group of customers are taking matters into their own hands.

Bursor & Fisher, a New York based law firm, has filed arbitration cases on behalf of 11 AT&T customers, citing the merger would violate the Clayton Antitrust Act. The group claim that less competition in the wireless marketplace would lead to higher prices and poor service. The group filed their first 236-page arbitration document late last week.

Arbitration cases are typically reserved for smaller conflict resolutions, but since customers cannot file class-action lawsuits against AT&T this is the next best step for individuals wishing to take legal action against the company. The law firm is anticipating filing hundreds of these arbitration cases through their website FightTheMerger.com.

Customers aren’t the only ones against the merger, however. The Department of Justice, the Federal Communications Commission and rival provider Sprint Nextel have all stepped forward to more closely investigate the deal. In the case of Sprint Nextel, the company even went so far as to show AT&T how to get more capacity from its network so they wouldn’t need to purchase T-mobile.

AT&T plans for the merger to officially wrap up by March 2012.




User Comments: 6

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Win7Dev said:

If this can get verizon to lower their high prices, then go ahead and let them merge. Since I am a verizon user, it will benefit me as this leads to more potential competition for them. Customers will get better service from "Big Red" and probably see some better discounts on phones or hopefully cheaper, faster data plans.

Relic Relic, TechSpot Chancellor, said:

Win7Dev said:

If this can get verizon to lower their high prices, then go ahead and let them merge.

I highly doubt a merger would do anything for us besides bring prices more north. A duopoly would destroy the little competition and differentiation we have to begin with. And I just don't see it getting better after a merger considering we already see unnecessary price hikes and limitations.

Zilpha Zilpha said:

I already left T-Mobile over this. It's not a "potential" merger; it's happening whether we like it or not and it's a terrible idea.

All the fighting in the world isn't going to matter, because this is going to happen. All these folks are just wasting their breath.

lawfer, TechSpot Paladin, said:

Like Zilpha said, this is happening no matter what. People, organizations, and companies against it are just wasting their time.

All this, "review" and "regulation" is all bullshit. AT&T agreed to pay, what was it it again? 36 BILLION dollars to T-Mobile, if the deal never went through? Are you seriously telling me you would be willing to shell that amount of cash without being sure things are going to go as planned? I don't think so.

AT&T has been around this country for more than a century. It currently holds the most governmental contracts for landlines, and it is the biggest telecommunications company on earth. They've got <I>the</I> money. Like it or not, this **** is going down.

Besides, we are talking about America, where big corporations hold as much power as government (or vice-versa)...

3DCGMODELER 3DCGMODELER said:

here we go again..

AT&T sucking up all the compatition.. I see it getting Monopolized again....

I just wish they would get rid of the 2 YR contract thing Thats the one thing I hate... the stupid Contract stuff

Guest said:

I don't care about T-Mobile, what I want is for ATT to stop capping my internet speed, get rid of this so much GB per month deal, quit lying that a internet speed upgrade is coming to my area(its been almost 10 years! quit lying about it!), and increase their internet speed and still make it cheap.

please, for the love of god, break up att so we can get better internet speeds!

It's ether Comcast or ATT for internet and anyone who thinks otherwise lives in a rual area with a local ISP. Break up ATT and comcast. we are below the top 10 fastest internet speeds in the world as a nation... its getting stupid here in the USA..

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