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AT&T Seeks Dismissal of Lawsuits Blocking T-Mobile Takeover

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USA based AT&T has asked a court to dismiss two lawsuits filed against it seeking to block its USD39 billion takeover of T Mobile USA.

Rival networks, Sprint Nextel and Cellular South separately filed lawsuits against the takeover, claiming that they would be anti-competitive -- a charge that AT&T denies.

AT&T argued that competition would be enhanced by the merger with T-Mobile and that the enlarged company would be "freed of spectrum shortages that impair its ability to offer customers better services at lower prices" and thus could be a better competitor to the other networks.

"What is good for consumers is bad for Sprint, and that is why Sprint has filed suit." AT&T added in its filing.

The company also cited prior discussions with Cellular South (since renamed as C Spire) for the sharing of radio spectrum and roaming services in exchange for supporting the takeover bid as evidence that the company did not fear the takeover and simply sought to capitalize from it.

"Cellular South suggested that it would not oppose the merger if AT&T would agree not to engage in facilities-based competition in Mississippi," AT&T said in its filing. 

"AT&T's accusations flatly distort the record. As the emails attached to AT&T's motion make clear, Mr. Meena never suggested that AT&T not compete in Mississippi or anywhere else," Cellular South Vice President, Eric Graham stated. "Mr. Meena raised the same issues that we have articulated for years."

The two cases continue to be argued in court.

AT&T is facing a more serious challenge in the courts from the Department of Justice though, who are also opposing the takeover on competition grounds.

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Tags: at&t  cellular south  sprint nextel  t-mobile usa  USA