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AT&T Says to DoJ: T-Mobile Buyout will ‘Usher in More Intense Competition’

US wireless carrier AT&T has responded to the lawsuit filed by the US Department of Justice in order to block its acquisition of T-Mobile.

The company said in its response that the acquisition will have a positive impact on market competition instead of the negative impact that the DoJ and others are foretelling. AT&T claimed that the DoJ, in its complaint, fails to grasp the positive impact of the deal on competition.

"Rather than substantially reducing competition, the combined firm will usher in more intense competition to an already vibrantly competitive market," the company said in its filing.

"While acknowledging the importance of merger efficiencies in enhancing competition in its Merger Guidelines, the Department of Justice's Complaint fails to come to grips with the significant efficiencies this transaction will generate." it continued.

AT&T has proposed a $39 billion acquisition of T-Mobile, the country’s fourth largest mobile phone services provider. The US DoJ along with AT&T’s smaller rival Sprint believe that market competition will suffer due to the competition and consumers will be forced to put up with increase costs.

Sprint also claimed that the deal will put it at a disadvantage because it would make AT&T and Verizon Wireless two of the biggest wireless carriers in the country.

Ravi Mandalia

Ravi Mandalla was ITProPortal's Sub Editor (and a contributing writer) for two years from 2011. Based in Ahmedabad, India, Ravi is now the owner and founder of Parity Media Pvt. Ltd., a news and media company, which specializes in online publishing, technology news and analysis, reviews, web site traffic growth, web site UI. Ravi lists his specialist subjects as: Enterprise, IT, Technology, Gadgets, Business, High Net Worth Individuals, Online Publishing, Advertising, Marketing, Social Media, News, Reviews, Audio, Video, and Multi-Media. He has also previously worked as Dy. Manager - IT Security at (n)Code Solutions.