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US: T-Mobile buy irks industry union

 |  January 21, 2014

The Communications Workers of America have begun to chime in regarding rumors that Sprint’s SoftBank and T-Mobile’s Deutsche Telekom are planning a merger of the nation’s third- and fourth-place wireless operators – and the feedback is not positive.

The union slammed any possible deal, arguing it would be worse than if AT&T’s buyout attempt of T-Mobile went through. Regulators blocked AT&T’s acquisition attempt in 2011.

In a statement issued Monday, the CWA said that when AT&T’s buyout bid was blocked, the US Department of Justice described T-Mobile as an “aggressive competitor.” That stance, the union argued, has only strengthened in recent years with spectrum grabs and competitive pricing strategies.

”It would be irresponsible now for regulators to endorse the bid by SoftBank, a company that brings much less to the table for consumers and workers than the AT&T bid,” the group wrote.

As rumors swirl of a possible merger that would shake-up the wireless industry, experts note that any T-Mobile buyout would have to overcome significant regulatory scrutiny.

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