FRANKFURT Oct 9 Deutsche Telekom is
confident of selling its T-Mobile USA unit to AT&T despite
an antitrust lawsuit by the Obama administration to bloc the
deal, Deutsche Telekom's chief executive told a German
"The suit came as a surprise to everyone, for the
professional world as well as both sides," Rene Obermann told
Bild am Sonntag newspaper in an interview.
"But we are pushing forward determinedly with the project
and are optimistic that in the end we will be able to carry out
this merger," Obermann added.
The sale of T-mobile is likely to spur activity in the U.S.
mobile phone market, Obermann said.
"It will fire up competition in the United States because it
will boost network capacity and that is the basis for price
competition," he said.
"The merger creates advantages for all participants and that
is why it will go through, I remain very confident of it."
The U.S. Justice Department has sued to block AT&T's $39
billion purchase of T-Mobile over worries it would squelch
competition and innovation as well as lead to higher prices.
A key government concern is that T-Mobile, the No. 4
wireless carrier, generally costs less than other carriers so
its disappearance could mean higher prices for wireless service.
T-Mobile and AT&T, the No. 2 wireless carrier that would
vault to market leader if the sale goes through, have sought to
address the government's concerns and negotiate a settlement in
which the deal could be completed.