AT&T responds to DoJ filing on T-Mobile USA acquisition

AT&T has filed a formal response to a US Department of Justice (DoJ) suit seeking to block the company's acquisition of T-Mobile USA.

AT&T claimed in a 27-page filing (PDF) that the proposed $39bn deal will improve rather than harm competition in the mobile carrier space.

"Rather than substantially reducing competition, the combined firm will usher in more intense competition to an already vibrantly competitive market," the company said.

"While acknowledging the importance of merger efficiencies in enhancing competition in its Merger Guidelines, the DoJ complaint fails to come to grips with the significant efficiencies this transaction will generate."

The filing is the latest turn in an increasingly public battle over T-Mobile's American operation. In addition to objections from the DoJ, rival carriers such as Sprint have come out in opposition of the deal.

AT&T maintains that it will continue to face stiff competition from national networks and regional wireless carriers, and that the move will boost sagging T-Mobile figures.

"Although the transaction will remove T-Mobile as an independent competitor, no significant consumer harm will result," AT&T said.

"For the past two years, T-Mobile has been losing customers despite growing demand. Without the spectrum to deploy a 4G LTE network such as that deployed by the other carriers, there is no reason to expect a change in its undifferentiated competitive significance."