Sprint files suit to block ATT/T-Mobile merger

Summary:Sprint filed suit in federal court to block the ATT/T-Mobile on anti-trust grounds. The filing follow that of the DOJ last week to block the deal.

Sprint filed a federal suit in Washington D.C. today to block the proposed merger between AT&T and T-Mobile. The suit follows one filed by the DOJ to block the merger on anti-competitive grounds. Sprint has been vocal against the merger since it was announced, and no doubt feels this is punctuation on the DOJ ruling.

The Sprint statement outlines the reasons it opposes the merger:

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.

The suit names AT&T, AT&T Mobility, T-Mobile USA and Deutsche Telekom, the participants in the proposed $39 billion merger. With the deck stacking up higher against the merger as time passes, you might think AT&T would just walk away from the deal that is seemingly becoming more expensive. That's easier said than done as that move would cost AT&T $3 billion, as promised to the T-Mobile side should the deal fall through.

Topics: Telcos, Banking

About

James Kendrick has been using mobile devices since they weighed 30 pounds, and has been sharing his insights on mobile technology for almost that long. Prior to joining ZDNet, James was the Founding Editor of jkOnTheRun, a CNET Top 100 Tech Blog that was acquired by GigaOM in 2008 and is now part of that prestigious tech network. James' w... Full Bio

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