AT&T Surprised at Decision to Block T-Mobile Merger: Your Thoughts?

Regular OSM readers may remember that back in March we brought you news of AT&T’s intention to buy T-Mobile in a deal worth around $39 billion, which would make AT&T the largest wireless provider in the U.S. We have further news on that intended merger today as the U.S. Justice Department has moved to block the merger.

When we first reported on the move that was subject to regulatory proceedings, we told how the merger could be a double-edged sword. On the one hand many customers would see an expanded coverage but conversely there would be less competition in the market, often a disadvantage to consumers. We also told how Sprint intended to oppose AT&T’s plans to acquire T-Mobile and that it looked like a rough ride ahead for AT&T.

That certainly seems to be the case now as the Antritrust lawsuit filed by the by the U.S. Justice Department to block the merger is a major setback to AT&T. Among the concerns that the Justice Department had about the merger were poorer services, less choice, less innovation and higher prices, according to Todd Wasserman over on Mashable. AT&T said it would contest the decision in court and was “surprised and disappointed.” Following the news from the U.S.Justice Department, AT&T stock went down by 5%.

Mashable is also conducting an interesting poll asking its readers if the U.S. Government is right to block the merger between AT&T and T-Mobile. The poll is still ongoing so if you want to participate head to the earlier Mashable link. Current results show that most people support the block with 66.76% saying the merger would be very bad for consumers, while 24.93% reckon the government should “butt out.” A further 8.31% are unsure.

We’d be really interested to hear your thoughts on the merger. Do you think it should be allowed to go ahead or better for consumers if it doesn’t? Let us know by sending your comments.