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AT&T Fights U.S. Suit, Calls T-Mobile Deal Good for Public

AT&T Inc. said its proposed $39 billion acquisition of T-Mobile USA Inc. is good for mobile-phone customers and that the U.S. lawsuit seeking to block the deal “fails to come to grips” with its benefits.

AT&T filed its response today to the U.S. Justice Department’s complaint in federal court in Washington. The company said the merger would lead to better service, fewer dropped calls and lower prices for consumers. AT&T cited fierce competition from Verizon Communications Inc., Sprint Nextel Corp., MetroPCS Communications Inc., Leap Wireless International Inc., U.S. Cellular Corp. and Cellular South Inc.