The deal comes at a time when the cellular business has become dominated by two giants - AT&T and Verizon - with Sprint Nextel and T-Mobile lagging far behind. The merger, which has to be approved by regulators, is the latest salvo by AT&T to compete for customers who are increasingly using wireless networks not just to make calls but also to surf the Web on tablets and smartphones.
AT&T argued that the merger - the largest worldwide in two years - would increase its coverage to 95 percent of the U.S. population, especially into rural areas, satisfying a key technology goal of the Obama administration.
Anticipating regulators' concerns, AT&T also maintained that the U.S. wireless industry remains "fiercely competitive," especially in local markets where low-cost regional carriers are becoming popular.
AT&T argued that the merger - the largest worldwide in two years - would increase its coverage to 95 percent of the U.S. population, especially into rural areas, satisfying a key technology goal of the Obama administration.
Anticipating regulators' concerns, AT&T also maintained that the U.S. wireless industry remains "fiercely competitive," especially in local markets where low-cost regional carriers are becoming popular.
AT&T needs the approval of the Justice Department and Federal Communications Commission to buy T-Mobile, which is the smallest of the major cellular companies and has carved out a niche by offering cheaper plans.
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