AT&T counters Justice Dept. suit

WASHINGTON, Sept. 10 (UPI) -- U.S. telecommunications giant AT&T said its purchase of T-Mobile USA would help, not hurt, competition in the industry, court papers said.

"T-Mobile's business model remains 'stuck in the middle' between larger providers like Verizon, AT&T, and Sprint and lower-priced competitors like MetroPCS and Cricket," the company said in papers filed in a federal court in Washington to counter claims by the Justice Department that the purchase would put consumers at a disadvantage, The Wall Street Journal reported Saturday.

"Blocking this transaction will not help T-Mobile or its customers, but the transfer of T-Mobile's network capacity and infrastructure to AT&T, a healthy competitor, will enhance competition for all, now and in the future," AT&T said.

If the $39 billion deal is derailed, AT&T would have to pay Deutsche Telekom AG, which owns T-Mobile, $3 billion and grant T-Mobile $3 billion worth of spectrum and access rights.

The Justice Department is suing AT&T to block the deal that would combine the second- and fourth-largest phone networks in the country.