AT&T Selling Assets For T-Mobile Deal
It looks like a fire sale for AT&T as they may be forced to sell off some major profits and expand services to the poor to get the final okay from the federal government to finalize it’s $39 billion buyout of Deutsche Telekom AG’s T-Mobile which would make it larger than it’s competitor Verizon Wireless.
It could take some time, maybe a year and a half for the merger to be done as the regulators, competition, and critics will have to be convinced the deal isn’t in the anti-trust end. If finalized, AT&T will have around 130 million customers total which is about 43% of the market. The FCC and Justice Department may force AT&T to give up some of it’s assets and engage in other practices they see fit as a good show regarding how large the wireless giant will grow.
The power of the FCC could possibly include such charitable actions as expanding services to the poor and needy.
Customers are only interested in getting good service and reasonable prices which others fear is just the opposite will happen. Those in rural areas and the poor might find themselves at the bad end of the merger and that’s what watchdog groups and the government are concerned with.
This won’t be an easy road for AT&T as every aspect of this merger is going to be scrutinized down to the last text message. The reason being, AT&T exists due to regulation that prevented large monster sized corporations from running an entire market. With this merger there’s not telling of the public will get the service they need at an affordable price. Only time will tell if this deal gets finalized and it will be worth noting the progress of this process.*Sponsored Links*