The legal battle over AT&T's proposed acquisition of T-Mobile will continue at a September 21 status hearing, the judge in the case ruled yesterday.
At that hearing, set for 2pm in Washington, D.C., all parties "shall be prepared to discuss the prospects for settlement," according to the order, handed down by Judge Ellen S. Huvelle with the D.C. District Court. Everyone involved must file a joint proposed scheduling order and case management plan by September 16, "which will facilitate the just, speedy and inexpensive determination of all pretrial matters and the trial of this case," the judge said.
The move comes one week after the Department of Justice sued to block the merger of AT&T and T-Mobile, arguing that combining the two wireless companies will "substantially lessen competition" in the market. Ultimately, the agency wants the court to find that AT&T's $39 billion purchase of T-Mobile would violate U.S. antitrust laws and hand down a court order blocking the deal.
At the time, AT&T said it planned "to ask for an expedited hearing so the enormous benefits of this merger can be fully reviewed."
In the wake of the DOJ filing, there have been reports that, in order to get the deal done, AT&T is willing to sell off 25 percent of T-Mobile's business and promise not to raise existing T-Mobile prices, but no announcements have been made. If the deal fails, it could mean a big financial loss for AT&T—at least $3 billion, according to the current contract.
A Wednesday report from Bloomberg, however, said that AT&T could lower the $39 billion acquisition price tag if conditions requested by regulators become too pricey. If the government requires AT&T to sell off assets that are worth more than 20 percent of that $39 billion price, for example, AT&T might be able to pay less for T-Mobile, Bloomberg said, citing people with direct knowledge of the purchase contract.
Despite the DOJ's lawsuit, lobbying and other activity on the issue continues. Sprint this week sued AT&T to block its proposal to acquire T-Mobile. US Cellular also submitted an FCC filing last week that said simply requiring AT&T to sell off some of its holdings would not be enough. "A package of conduct remedies is needed to allow smaller companies to compete," the company said.
Non-profit Connect, meanwhile, sent around a statement in support of the deal, though AT&T is listed as one of its main benefactors. "Young and emerging tech companies, that are the driving engine for job creation and innovation, desperately need fast, reliable and ubiquitous wireless networks to thrive," something the deal will provide, said Connect vice president of public policy, Timothy Tardibono.
For more, see On AT&T/T-Mobile Merger, Justice is Served as well as 7 Alternative Buyers for T-Mobile.