Justice Blocks AT&T/T-Mobile: What it Means to You

The Justice Department has sued to block AT&T's proposed $39 billion takeover of T-Mobile. The feds maintain that the deal would hurt competition; raise prices for consumers; and lead to a deterioration of service for everyone. In other words, it's a clear violation of anti-trust laws.

I'll let the courts decide which side it right, but in the mean time, here's what the lawsuit means for cell phone customers:

• Verizon customers: no change likely
• AT&T customers: get ready for Verizon to seduce you. Perhaps you should grab a good deal because if you stay with AT&T and they lose, you could wind up paying more for services. The reason? Without T-Mobile, AT&T will have to spend more to beef up its network. Those costs would eventually flow to consumers.
• Sprint/Nextel customers: Delay is welcome, because if the deal were to go through, Sprint would have had a tough time competing as a distant number three.
• T-Mobile customers: Nothing good is happening for you, because without an exit, T-Mobile is a number 4 carrier that is losing customers each quarter and scrambling to keep up.

More on MoneyWatch:
Best Ways to Ditch Your Cell Phone Plan

Jill Schlesinger

Jill Schlesinger, CFP® is the Emmy-nominated business analyst for CBS News. She covers the economy, markets, investing and anything else with a dollar sign on TV, radio (including her nationally syndicated radio show), the web and her blog, "Jill on Money." Prior to her second career at CBS, Jill spent 14 years as the co-owner and chief investment officer for an independent investment advisory firm. She began her career as a self-employed options trader on the Commodities Exchange of New York, following her graduation from Brown University.

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