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Sprint Is Now Suing To Stop The AT&T / T-Mobile Merger

Sean W. Sep 7, 2011 2


AT&T Eating T-MobileThe potential merger between AT&T and T-Mobile keeps getting better.  We’ve recently had a new player in the game known as the U.S. Justice Department suing to stop this merger and now longtime opponent of the merger, Sprint, has taken to the courts to stop the merger also.

Sprint has filed the lawsuit in Washington D.C. to block the merger.  The claims in the complaint are:

  • Harm retail consumers and corporate customers by causing higher prices and less innovation.
  • Entrench the duopoly control of AT&T and Verizon over the nearly one-quarter of a trillion dollar wireless market. Sprint argues that AT&T and Verizon would control more than three-quarters of the market and 90 percent of the profits.
  • Sprint also believes the deal would hurt it and other independent wireless carriers by allowing AT&T an increased market position to exclude competitors, raise their costs, restrict access to handsets and lessen competition.

AT&T didn’t lay down quietly has this second lawsuit was filed.  The statement form the company was the following: “We of course will vigorously contest this matter in court as AT&T’s merger with T-Mobile USA will: help solve our nation’s spectrum exhaust situation and improve wireless service for millions; allow AT&T to expand 4G LTE mobile broadband to another 55 million Americans, or 97% of the population; and result in billions of additional investment and tens of thousands of jobs, at a time when our nation needs them most.”

A recent leaked document stated that AT&T only needed to upgrade their structure to obtain the talked about results and the cost would only be 3.9 billion, a far lower amount than what they are proposing for the purchase of T-Mobile, 39 billion.