AT&T is pretty determined and pretty confident it can push through its proposed merger with T-Mobile, reported Reuters, citing an anonymous source.
The megadeal, worth $39 billion, would create the largest wireless service company in the U.S. and control 43 percent of the market share.
The attractiveness of possessing this dominant position likely drew AT&T to the deal in the first place and now gives it the determination to complete it.
If the deal doesn't pan out, AT&T would owe T-Mobile's corporate parent Deutsche Telekom about $6 billion.
This clause indicates AT&T does have a certain threshold of confidence that the deal would go through back when it crafted the merger agreement with Deutsche Telekom. Now, it is extra incentive for the company to make sure that it does.
On August 31, the Department of Justice put a major stumbling block in AT&T's merger ambitions by suing to enjoin its proposed acquisition of T-Mobile. With the lawsuit out of the gate, AT&T is likely in for a tough (and arguably uphill) battle.
A day before the lawsuit was announced, representatives from AT&T and T-Mobile met with officials from the Department of Justice and other government agencies to discuss the potential effect of the proposed merger on competition in the wireless industry, reported Bloomberg.
At the meeting, AT&T offered to keep low-cost T-Mobile subscription plans and suggested the possibility of selling some units.
However, the Department of Justice thought AT&T's proposed remedies didn't address concerns about preserving a strong fourth competitor that serves the national wireless market, a source told Bloomberg.
The next day, the Department of Justice sued.
After the lawsuit, Reuters reported that AT&T is working on a plan to appease regulators. The plan would involve keeping T-Mobile's low subscription rates and selling up to 25 percent of T-Mobile's business.
However, Reuters pointed out that there is a dearth of buyers for the national assets of T-Mobile.
The only two companies that may want them are Verizon and possibly Sprint. However, if Verizon or Sprint acquire the T-Mobile assets, fresh anti-trust concerns could be raised with either of these two companies.
If the objection of the Department of Justice is chiefly about preserving competition on the national level and keeping four major players each of sufficient size, AT&T may be hard pressed for any solutions.
Still, come 2012, AT&T may find itself a champion in GOP frontrunner Rick Perry.
Perry, in his official capacity of as the Governor of Texas, sent an emphatic letter in support of the AT&T T-Mobile merger in May 2011.
He cited the potential creation of jobs and a solution the U.S. wireless spectrum crunch.