The legal drama between AT&T, T Mobile, Sprint, and the Justice Department that has unfolded over the last few months has grown increasingly complex and touchy due to the multitude of actors vying for the upper hand. Now, 16 House Democrats have opted to charge headlong into the fray and are putting pressure on President Obama to let the merger through.
CNET reported that the delegation, led by Representative Heath Shuler of North Carolina, claims the merger would create thousands of jobs at a time when employment in the US is much in demand. AT&T itself has taken the improbable position that the acquisition would actually save $10 billion by “consolidating platforms, customer care centers and headquarters organization.” AT&T also pledges to avail 4G wireless technology to 97% of Americans, talking points which the delegation has echoed, says Seattle Pi.
Naturally, Sprint was not pleased with this turn of events. John Taylor, Sprint’s manager for Public Affairs, said in a statement, “Make no mistake, AT&T’s proposed takeover of T-Mobile will eliminate tens of thousands of jobs across the country. The flawed economic study embraced by AT&T and its union ignores what Wall Street investors and the Federal Government have been already been promised: that the overall investment for the combined companies will be substantially reduced if the proposed transaction closes.”
The DOJ filed suit to block the $39 billion merger last month. The deal would make AT&T and its 4G infrastructure the largest in the country and relegate Sprint to a very distant third place in the global mobile market.
The full letter that Mr. Shuler transcribed for the President can be found on ZDnet.