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Wednesday, 31 August 2011

AT & T And T-Mobile USA Challenge Facing


Telecommunications giant American attempt to buy AT & T rival T-Mobile USA could face collapse after the U.S. government continued to block the case of $ 39 billion (£ 24 billion).

AT & T agreed to buy the company to Deutsche Telekom in March, aims to create the first U.S. wireless network.

But the Department of Justice said the merger would lead to higher prices and limit choice, and requested a court order to stop the movement.

AT & T said it would fight the move by the government.




He said he would request a court hearing "to the enormous benefits of this merger can be an exhaustive review."

AT & T added that the Justice Department "has the burden of proving the alleged anti-competitive effects, and there will surely contest this matter before the Court."

Neither the U.S. T-Mobile and its German parent company Deutsche Telekom has already commented.

"Low quality"

AT & T has offered to buy the T-Mobile would give AT & T, about 43% of the mobile phone market in the United States.

However, it can not proceed without the approval of the Ministry of Justice and the Federal Communications Commission (FCC).

"The combination of AT & T and T-Mobile will result in tens of millions of consumers across the United States, higher prices, less choice and lower quality products for the mobile wireless," said Deputy Attorney General James Cole.

"Consumers across the country, including rural and low income, benefit from the competition, one of the wireless carriers, especially in the remaining four national carriers. This action is intended to ensure that everyone can continue to receive the benefits of competition. "

Department of Justice said that the merger would combine two of the four companies, which provide 90% of mobile phone services in the United States.

However, T-Mobile was a "disruptive" in the industry, aggressively lowering prices.

If the business is prevented from going forward, the AT & T may have to pay several billion dollars in T-Mobile charges.

But the uncertainty and delays due to launch legal action might even be harmful, analysts suggested.

"The uncertainty created raises a number of very difficult decisions for AT & T, especially in terms of network investment," said Jan Dawson Ovum telecoms analyst.

"All this is happening exactly when AT & T needs to accelerate its deployment 4G forward with Verizon, Sprint and others that are much further," he said.

Creating new jobs

Improve wireless broadband has been one of the benefits of the takeover by AT & T. said

He said that the purchase of T-Mobile USA could create up to 96,000 jobs because of their investment of $ 8 million in infrastructure.

Part of this money will go to improve its broadband wireless, since its faster LTE or 4G network to 97% of Americans, he said.

Previously, AT & T also said it would repatriate 5,000 jobs call center abroad if regulators approve the transaction.

The former monopoly is broken by the regulatory authorities of eight separate companies in early 1980.

AT & T has grown through mergers, after a serious, Pacific Telesis, Ameritech and Southwestern Bell merged to form SBC, then SBC bought AT & T, BellSouth and Cingular, Jan Dawson says.

"The fact that the Ministry of Justice is stepping up now, it's a sign he wants to draw a line in the sand and prevent further consolidation among the major industry players, and especially AT & T, "he said.

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