Sep 06 AT 1:50 PM Edgar Cervantes 16 Comments

Sprint files suit against AT&T/T-Mobile merger; can they block it?

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The AT&T/T-Mobile merger may mean impending doom, but there’s no doubt many are still trying to stop it. Sprint has been against this acquisition from the very beginning. Though the company has clearly stated such, things are getting much more serious today.

As promised, Sprint will do everything in its power to stop AT&T from taking over T-Mobile. Sprint decided to follow suit with the US Department of Justice and filed a claim of its own against the feared acquisition.

Sprint’s statement basically echoes what we’ve been hearing all along; the only difference is that the company is now taking legal action. America’s first 4G network believes that AT&T’s acquisition of T-Mobile will give AT&T too much power in the US mobile market. This would not only create a carrier duopoly between Verizon and AT&T, but it would harm competition and inflate prices for customers.

Sprint opposes AT&T’s proposed takeover of T-Mobile. With today’s legal action, we are continuing that advocacy on behalf of consumers and competition, and expect to contribute our expertise and resources in proving that the proposed transaction is illegal.Susan Z. HallerVice President-Litigation, Sprint

According to Sprint’s press release, the proposed acquisition would do the following:

  • Harm retail consumers and corporate customers by causing higher prices and less innovation.
  • Entrench the duopoly control of AT&T and Verizon, the two “Ma Bell” descendants, of the almost one-quarter of a trillion dollar wireless market. As a result of the transaction, AT&T and Verizon would control more than three-quarters of that market and 90 percent of the profits.
  • Harm Sprint and the other independent wireless carriers. If the transaction were to be allowed, a combined AT&T and T-Mobile would have the ability to use its control over backhaul, roaming and spectrum and its increased market position to exclude competitors, raise their costs, restrict their access to handsets, damage their businesses and ultimately to lessen competition.

After months of not hearing anything on the topic, it’s a relief to hear people are not giving up on trying to stop this merger. Just like Sprint and the Department of Justice, though, AT&T/T-Mobile will not give up the fight easily.

Things are definitely starting to look rough for AT&T, which had been very sure this deal would go through. We can only assume what will happen, but now that others are entering the court room things are starting to become much more interesting. Check out the press release posted below, and let us know what you think. Will Sprint (and the others) be able to stop this acquisition? Will/should Verizon jump in?

Show Press Release
Sprint Files Suit to Block Proposed AT&T and T-Mobile Transaction

WASHINGTON (BUSINESS WIRE), September 06, 2011 – Sprint Nextel [NYSE:S] today brought suit against AT&T, Inc., AT&T Mobility, Deutsche Telekom and T-Mobile seeking to block the proposed acquisition as a violation of Section 7 of the Clayton Act. The lawsuit was filed in federal court in the District of Columbia as a related case to the Department of Justice’s (DOJ) suit against the proposed acquisition.

“Sprint opposes AT&T’s proposed takeover of T-Mobile,” said Susan Z. Haller, vice president-Litigation, Sprint. “With today’s legal action, we are continuing that advocacy on behalf of consumers and competition, and expect to contribute our expertise and resources in proving that the proposed transaction is illegal.”

Sprint’s lawsuit focuses on the competitive and consumer harms which would result from a takeover of T-Mobile by AT&T. The proposed takeover would:

Harm retail consumers and corporate customers by causing higher prices and less innovation.
Entrench the duopoly control of AT&T and Verizon, the two “Ma Bell” descendants, of the almost one-quarter of a trillion dollar wireless market. As a result of the transaction, AT&T and Verizon would control more than three-quarters of that market and 90 percent of the profits.
Harm Sprint and the other independent wireless carriers. If the transaction were to be allowed, a combined AT&T and T-Mobile would have the ability to use its control over backhaul, roaming and spectrum, and its increased market position to exclude competitors, raise their costs, restrict their access to handsets, damage their businesses and ultimately to lessen competition.

About Sprint Nextel

Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 52 million customers at the end of 2Q 2011 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. Newsweek ranked Sprint No. 6 in its 2010 Green Rankings, listing it as one of the nation’s greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint.

Via: Android Central

Hello, I am Edgar Cervantes. I am an avid Android fan, and keeping myself updated on the topic is part of my daily life. I will always work hard to give the best of me to our community of Android enthusiasts, and I am very honored to be part of this ship. Hopefully we can all enjoy sharing our knowledge and opinions!

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