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AT&T files response to DOJ suit, says regulators just don’t understand

It’s no secret or surprise that AT&T is gloomy with the DOJ’s decision to attempt and block its merger with T-Mobile . But issuing public statements is some thing, officially filing papers in court is another. Ma Bell submitted a 25-page document arguing that the Justice Department’s claims represent a misunderstanding of the market and dismisses competition from “innovative upstarts,” like MetroPCS and US Cellular . AT&T’s lawyers indicate that T-Mo, currently the fourth largest provider, was losing customers for years and it’s German parent company will not be inclined to speculate much in improving it. Against this, AT&T has spent $30 billion over the past two years to enhance network quality and capacity, yet still struggles to maintain with demand. We won’t say the arguments are without validity, however the government’s fear of a market dominated by just three companies with little incentive to innovate or drive down prices also seems well founded. Well, the pageantry officially gets underway on September 21st, when the united states District Court hearings begin.

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