Easy wins

1 September 2011 By Robert Cyran Follow @rob_cyran

The operator’s top brass and lawyers will obviously look awful if the $39 bln deal collapses. It’s not yet obvious how T-Mobile and Verizon would fare. But telecom equipment and handset firms, as well as the likes of Sprint, LightSquared and Crown Castle all stand to gain.

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The U.S. Department of Justice on Aug. 31 sued to block AT&T’s agreed $39 billion acquisition of Deutsche Telekom’s T-Mobile USA unit because of competition concerns. AT&T has promised T-Mobile $3 billion cash, as well as spectrum rights and a roaming agreement worth approximately $3 billion if the deal isn’t completed.

“The combination of AT&T and T-Mobile would result in tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services,” Deputy Attorney General James Cole said in a statement.

The combination would create the largest U.S. cellular carrier with 130 million customers, pushing Verizon Wireless into second place.

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