Cellular South files antitrust lawsuit against AT&T over proposed T-Mobile takeover

By Amar Toor
Sprint and Uncle Sam aren't the only ones taking issue with AT&T's proposed acquisition of T-Mobile, because Cellular South has a bone to pick, as well. Yesterday, the provider filed a lawsuit against AT&T in a DC federal court, charging that its $39 billion merger with T-Mobile would violate US antitrust laws. "The merger of AT&T and T-Mobile is anti-competitive, and will result in consumers facing higher prices, less innovation, fewer choices and reduced competition," Cellular South said in a complaint. The company went on to argue that legal evaluation of the merger must incorporate the perspectives of smaller, regional carriers who, like Cellular South, will "find it harder to secure both wireless devices at competitive prices and times and nationwide roaming." An AT&T spokesman declined to comment on the case, but you can find more details about it at the source link below, or in the full press release, after the break.

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Cellular South Files Suit to Block AT&T's Takeover of T-Mobile

Washington, D.C. – Cellular South today filed suit to block AT&T's planned acquisition of T-Mobile. The suit was filed under Section 7 of the Clayton Act in the U.S. District Court for the District of Columbia. The lawsuit has been filed as a related case to both the Department of Justice (and seven state Attorneys General) and the Sprint Nextel antitrust litigation against the proposed transaction.

Cellular South's complaint states that AT&T's proposed takeover of T-Mobile must incorporate a review from the perspective of regional carriers, like Cellular South.

"AT&T's proposed takeover of T-Mobile would profoundly impact the interests of the wireless industry as a whole," said Eric Graham, Cellular South Vice President for Strategic & Government Relations. "If AT&T were to complete this deal, not only would it substantially lessen competition, but it would essentially consolidate the market into the hands of the 'Big Two' – AT&T and Verizon."

Graham added: "Today's filing is another step in Cellular South's unwavering effort to pursue the best interests of competition, wireless consumers, and our nation's economy."

Cellular South's complaint explains that further consolidation of market power in the hands of AT&T and Verizon would mean that:

- regional carriers, like Cellular South, will not be able to obtain the latest wireless devices in a timely fashion and at a reasonable cost;

- Cellular South and other regional carriers will be forced to pay higher roaming prices – assuming that they are able to obtain roaming agreements at all; and

- consumers throughout the country will face higher prices, less innovation, fewer choices, and reduced competition.

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