AT&T Argues For The Right To Buy T-Mobile

AT&T is presenting arguments for why it should be allowed to acquire T-Mobile, a move that some fear would make At&T to large, hurting consumers.

One of AT&T's major points has been that the company is heading towards a structural dead-end where it will fall victim to a severe capacity restriction, affecting its stake in the telecom market badly.

The company said in a statement, "With sharply declining prices, dazzling innovation, soaring output, enormous product differentiation, new entr[ies], and fierce advertising, the intensity of the competition in the US wireless marketplace is extraordinary."

In its argument, AT&T pointed out that T-Mobile, which it plans to buy for an estimated $39 billion, is not such a large purchase that it will affect the long company's long-term strategic choices. It also pointed out that it is unlikely that T-Mobile will remain competitive if it does not merge with another telecom firm.

But AT&T's primary argument is that it needs more spectrum and more bandwidth capacity, both of which it will get through the acquisition of T-Mobile.

OTher companies, most notably Sprint, have argued that allowing AT&T to go ahead with its plans will make the telecom market less competitive.