Kick ‘Em While They’re Down: 7 States Join DoJ Lawsuit To Block AT&T Merger.

  • September 16, 2011 5:51 pm

Despite AT&T’s claims to the contrary, it appears a growing number of citizens and local governments alike aren’t buying AT&T’s lies argument that combining the nation’s 2nd and 4th wireless carriers into one massive national GSM monopoly is a good idea. Today California, Illinois, Massachusetts, New York, Ohio, Pennsylvania, and Washington officially joined the Department of Justice’s lawsuit aimed at stopping the AT&T merger. Illinois Attorney General Lisa Madigan responded commented on the states support by saying: “Blocking this acquisition protects consumers and businesses against fewer choices, higher prices, less innovation, and lower quality service”. The DoJ in return voiced their pleasure in regards to the added support and reiterated their official stance: The merger is bad for everyone except AT&T.

Besides being a raw deal for consumers all around, public and government scorn towards the merger is likely to have been worsened back in mid-August when confidential documents containing damming information regarding AT&T’s true cost requirements for next-gen network rollouts leaked. The very next day after said leak internal AT&T computer inventory screenshots were also leaked which showed the carriers’ plans to remove all but one messaging plan — the highest priced $20 unlimited option. Amongst public outcry AT&T claimed most of their customers either texted enough to save money with the $20 plan or so little that a per-message fee was more economical. But the picture of what could be — AT&T cornering customers by removing legitimate service options and only marketing the most expensive ones — was thrust into the spotlight.

The news of added anti-merger support comes not even 24 hours after 15 congressman sent a letter penned by Rep. Heath Shuler (D-NC) to President Barack Obama urging him to help the DoJ and AT&T settle so a deal could be reached. On top of all of this, Sprint has also levied their own lawsuit AT&T’s way.

In short: Because (1) customer protections come before company profits and (2) AT&T’s glaring stupidity, the chances of the AT&T/T-Mobile merger are looking less probable by the week (thank god).

Via: Bloomberg


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