AT&T, T-Mobile Withdraw Merger Bid (for Now)

The consensus: 'Ma Bell is back'

(NEWSER) - Reactions to the surprise AT&T-T-mobile merger are pouring in, and, not surprisingly, most conclude this isn't a good thing for consumers:

• The Bell telephone system—"aka AT&T"—was broken up in 1984 to increase competition, and the US telecommunications market was deregulated in 1996, again to increase competition. But this merger "effectively restores Ma Bell to her former girth yet allows the company to operate in a looser regulatory environment," writes David Lazarus in the Los Angeles Times . "Consumers might wonder if they've been played. ... Ma Bell is back," and the only thing left for federal regulators to do is instill "new rules that address the shortcomings of our failed experiment in deregulation."

Wireless giant ends $39B bid to buy T-Mobile

(AP) - AT&T Inc. said today that it is ending its $39 billion bid to buy T-Mobile USA after facing fierce government objections. The cell phone giant said that the actions of the US government to block the deal do not change the challenges of the wireless phone industry, which it says requires more airwaves, known as spectrum, to expand. The deal would have solved that problem for a time, and without it, "customers will be harmed and needed investment will be stifled," AT&T said in a statement. More»

...and what the FCC can do about it

(NEWSER) - Wireless carriers call for minimum regulations on their industry, claiming their market is competitive. But with consumers bound by two-year contracts, it’s easy for companies like Verizon and AT&T to take advantage. It’s time for the FCC to get serious about protecting wireless users, the editors of the New York Times write. The agency can start by curbing early termination fees on contracts to give consumers more power to shop around. Text messaging provides another disturbing example. More»

Says combining No. 2 and No. 4 carrier would raise prices

(NEWSER) - AT&T tried to sugarcoat its $39 billion deal to buy T-Mobile USA by announcing this morning that it would, as a result of the merger, return 5,000 call-center jobs to US shores. But it still wasn't sweet enough for the Justice Department, which has filed suit to block the move, saying the acquisition of America's No. 4 wireless carrier by its No. 2 would reduce competition and raise prices. More»

Urges FCC, Justice Department to block it on anti-trust grounds

(NEWSER) - AT&T’s purchase of T-Mobile must be blocked on antitrust grounds, Sen. Herb Kohl declared today. The chair of the Senate subcommittee on Antitrust, Competition Policy, and Consumer Rights released a letter urging the FCC and Justice Department to step in before the two phone companies get hitched, the Wall Street Journal reports. The merger, he warned, “would likely cause substantial harm to competition and consumers, would be contrary to antitrust laws and not in the public interest.” The Senate is powerless, however, to interfere directly in the transaction. More»