Can AT&T purchase T-Mobile? New Roadblock ahead.

The recently huge deal between AT&T and T-Mobile that would result in AT&T purchasing T-Mobile for $39 billion has just faced another obstacle. Federal Communications Commission Chairman in the United States Julius Genachowski has asked commissioners to forward this deal to an agency judge for a hearing. This hearing could potentially lead to the failure of the deal and was called upon because some commissioners believe that this deal of merger, if done, will diminish competition among American Wireless carriers. If AT&T, one of America’s four largest wireless carriers, successfully purchases T-Mobile, also one of the four, AT&T would be able to gain dominant control over the wireless market in the United States. To prevent this monopoly, the FCC officials filed this antitrust case that might stall the deal from happening. The senior vice president of AT&T expressed the company’s disappointment with FCC’s action because they believe that this government interference will prevent billions in new investment and the creation of many thousands of new jobs at a time of depression. AT&T also expressed that this transaction, if successfully realized, would help bring wireless high-speed internet service to more people in America. The deal would certainly bring a huge sum of profit to AT&T; however, whether or not it will generate jobs and be beneficial to the American economy is questionable because the larger AT&T becomes, it is more able to decrease its spending and provide services at a higher efficiency; jobs may be lost instead of created. The trial for this antitrust case will not be accessed until February. The decision of the trial may affect the American Wireless market greatly.

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