[Update] Denied: U.S. Government Sues To Block AT&T T-Mobile Merger.

Since AT&T announced plans to absorb Deutsche Telekom’s T-Mobile USA earlier this year, they have been rather vocal about how easily the U.S. Government and associated committees would accept their buyout/merger of T-Mobile. According to both companies the merger would be better for everyone (actually, it wouldn’t). The only problem: It’s not going well for AT&T/T-Mobile. According to Bloomberg, the U.S. Government has officially filed an anti-trust complaint to block the aforementioned merger.

According to case number 11-01560, the U.S. Government is suing to block the merger in its entirety saying:

“AT&T’s elimination of T-Mobile as an independent, low- priced rival would remove a significant competitive force from the market”

Let us not forget that should AT&T’s merger plans get rejected, they’ll be required to pay T-Mobile $3 billion in cash, provide T-Mobile with additional spectrum in certain regions of the country, as well as reducing fees for T-Mobile-based calls routed through AT&T’s roaming areas. Overall, the entire package is said to be valued at ~ $7 billion.

We’ve reached out to AT&T and will update you once we hear back…

Update

AT&T has officially responded to the DoJ’s move to block the merger.

We are surprised and disappointed by today’s action, particularly since we have met repeatedly with the Department of Justice and there was no indication from the DOJ that this action was being contemplated.

We plan to ask for an expedited hearing so the enormous benefits of this merger can be fully reviewed. The DOJ has the burden of proving alleged anti-competitive affects and we intend to vigorously contest this matter in court.

At the end of the day, we believe facts will guide any final decision and the facts are clear. This merger will:

• Help solve our nation’s spectrum exhaust situation and improve wireless service for millions.

• Allow AT&T to expand 4G mobile broadband to another 55 million Americans, or 97% of the population.

• Result in billions of additional investment and tens of thousands of jobs, at a time when our nation needs them most.

We remain confident that this merger is in the best interest of consumers and our country, and the facts will prevail in court.

Now, if you will, we’ll pick through AT&T’s claims — after the break…

AT&T: “No LTE Phones Until Late 2011″

Previous reports that AT&T may launch LTE phones to coincide with this summer’s/early fall’s LTE network launch in a handful of major cities around the country — Atlanta, Chicago, Dallas, Houston and San Antonio — sparked quite a bit of discussion in the tech world. As it turns out, unfortunately, we will have to wait a bit longer for AT&T LTE phones.

Speaking today at the Oppenheimer Technology and Communications Conference, AT&T’s Senior Vice President of Mobility and Consumer Markets, Pete Ritcher, re-iterated the LTE network launch schedule, though denied any LTE phones would be released in the near future. Instead, Ritcher stated that we’d have to wait until “late this year” for any such devices. He went on to say that AT&T thought it would be better for consumers if they beefed up their HSPA+ network for the mass populous and then turned their attention to LTE once hardware matured. Though if you ask us, Verizon’s rapid LTE expansion and now growing list of LTE smartphones kind of discounts AT&T’s claims about LTE hardware being “immature”.

Nonetheless, we’re eager for another major LTE player to hit the ground running.

AT&T/T-Mobile Merger: 5 Myths + 5 Facts.

Josh Levy from Free Press has gone ahead and laid down the top 5 myths (and facts) concerning the ongoing AT&T/T-Mobile merger giving unknowing consumers a quick and concise way to see just how badly they’re about to be screwed. While the government is likely being wooed by AT&T and T-Mobile lobbyists, the Free Press (along with *hopefully* millions of Americans) are able to see straight though the tangled mess of lies and faulty information.

No matter what AT&T/T-Mobile may claim or how rosy a picture they paint, removing competition from the market is never good for the consumer or market as a whole. The real benefactors: AT&T/T-Mobile’s bank accounts.

Hop past the break for Josh Levy’s (Free Press) top 5 myths about the AT&T/T-Mobile merger.

DROID 3/Milestone Slips Through FCC?

Your Verizon Wireless friends may be boasting of their new DROID 3s and making your latest and greatest feel like a piece of forgotten 2006 tech, but fret not. The latest word from the FCC is that GSM carriers will have their own QWERTY-packin’ DROID *insert number here* device too.

To the FCC, the “DROID 3″ is merely known as ID IHDT56MF2. Evidence suggesting we are in fact dealing with the 3rd-gen GSM DROID include similar specs for screen, built-in storage, processor, and battery specific to the CDMA DROID 3.

Of course at this early stage in the game it’s not certain whether or not this claimed GSM DROID 3 will ship globally, only in Europe, or in the U.S. We’d much prefer a truly global release, though remnants of the Motorola Milestone release are still fresh in our minds.

Please, Motorola. You suck at keeping promises to unlock our bootloaders. (Oh yeah, you suck at designing Android skins too.) At least get something right.

AT&T: “On Track For 2012 Merger Deal”.

It appears the ongoing pressure from various consumer rights and government agencies isn’t causing AT&T to sweat over their proposed merger with T-Mobile. In a meeting with reporters held in Washington DC, AT&T General Counsel Wayne Watts confirmed that the carrier had recently provided the Department of Justice with a fresh round (that makes two) of information regarding the specifics of the merger and that the March 2012 closing date was still “within reach”…

T-Mobile USA Announces Two More Pre-Paid Plans.

Following last weeks rate plan revamp, T-Mobile let loose two more stragglers today for pre-paid customers. The new plans tip the scales at $50 and $70 with the former offering Unlimited calling + texting and 200 MB of data while the latter pushes the data limit up to 5 GB. As usual, T-Mobile employs data throttling rather than an all out cap which requires more money to unlock more GBs. T-Mobile claims it is 2G/EDGE speeds after you pass your monthly allotment, but we here at GS seem to get much faster than 2G even at 12 GB past our 5 GB cap. (Just sayin’…)

While the prices may not seem all that spectacular, the best part hides in the fact that neither of these plans require a contract. Any takers?

AT&T Launching 5-City LTE Network This Summer.

AT&T is preparing to undo several years of negative publicity caused by constant reports of shoddy network quality and data performance by launching their new LTE market in 5 cities this summer: Atlanta, Georgia; Chicago, Illinois; and Dallas, Houston, and San Antonio, Texas.

Speaking at the Barclays Capital Global Communications, Media, And Technology Conference, President and CEO of AT&T Business Solutions, John Stankey detailed AT&T’s continuing improvement over the last several years by revealing a nearly 40% improvement in nationwide speeds. Besides the 5 new LTE markets launching this summer, Starkey confirmed that by years end AT&T will release 20 4G devices as well as rollout LTE to 10 or more additional cities, ultimately covering over 70 million customers.

Verizon may have been the early bird with the worm in regards to LTE. But AT&T is certainly ready and willing to put up a fight — even more-so depending on how AT&T’s T-Mobile merger plans turn out. The following months should be mighty interesting.

AT&T Fires Back At Sprint Over Merger Claims.

It doesn’t take much scrutiny to see that going from 2 major GSM carriers to 1 is bad for consumer choice no matter how beneficial it may be in the short-term. Sprint is but one of many groups who realizes this, though they are perhaps one of the most vocal. Then again, they also have a lot to lose. The last couple of years hasn’t been kind to the nation’s third largest wireless carrier. And if the government allows the AT&T/T-Mobile merger to go through, Sprint will become even less relevant.

Since the official filing of the merger papers a couple of weeks back, Sprint has lobbied insult and criticism left and right. The gist of their attack is obvious — they’re calling out the GSM monopoly AT&T-Mobile will hold and combined duopoly AT&T-Mobile/Verizon will hold on the entire country. Well, AT&T is done taking punches and has a few of their own to share…

And So It Begins: AT&T Files Paperwork To Take Over T-Mobile Licenses And Spectrum.

The highly publicized takeover of T-Mobile USA by AT&T has officially begun, as today, AT&T submitted the legal paperwork formally requesting ownership of any and all T-Mobile wireless spectrum and licenses. The $39 billion deal (that several government and regulatory agencies must still approve) will create a gigantic 100+ million strong wireless carrier in the US, easily dwarfing the second closest carrier, Verizon, and completely overshadowing Sprint, the soon to be nation’s 3rd largest carrier.

AT&T still maintains that in acquiring T-Mobile they will be able to better provide advanced technologies tomorrow and in the future while also giving customers more speed, coverage, and choices even outside of AT&T. (Pardon us if we seem naive, but we fail to see how going from 2 major GSM carriers to 1 “drives competition”. In fact, it’s quite the opposite.) Sprint on the other had has joined the ranks of countless rural carriers in the fight to break up the proposed merger, stating that more harm than good will come from the impending marriage.

3-6 months from the U.S. cellular landscape could look very different. Stay tuned…