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AT&T Merger To Be Officially Submitted Next Thursday

Most were shocked on Sunday March 20th when we heard that AT&T had offered to buy T-Mobile USA from Deutsche Telekom for $39 billion in cash and stock.  Well we are hearing that the time has come and next Thursday (April 21) AT&T will be ready to submit their formal application to the Federal Communications Commission.

More after the break

The deal is already under scrutiny in three core areas. First, this will create a “GSM” monopoly in that there are currently two “major” GSM carriers and now there will only be one.  Secondly it will jump AT&T ahead of Verizon wireless, by millions and millions of customers. The last main area of contention is that if the AT&T and T-Mobile merger goes through, AT&T and Verizon will be able to drive costs of goods from their suppliers up which could harm companies like Sprint, MetroPCS, US Cellular and Cellular South.

Once submitted the deal will need the approval of the FCC and the Justice Department. Congress is also expected to hold hearings on the matter.

source: Bloomberg