Sprint jumps onboard with DOJ; files suit against AT&T, T-Mobile

Sprint jumps onboard with DOJ; files suit against AT&T, T-Mobile

Summary: Sprint pulls out some more punches against the AT&T/T-Mobile merger with a lawsuit.

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TOPICS: Telcos
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Sprint is stepping up its game in its fight against the AT&T and T-Mobile merger with a fresh lawsuit. More specifically, Sprint has filed suit against AT&T, Inc., AT&T Mobility, Deutsche Telekom and T-Mobile hoping to block the proposed acquisition as a violation of Section 7 of the Clayton Act.

Although most of Sprint's arguments against the merger are fairly evident now after months of campaigning, here are the highlights in this suit:

  • U.S. consumers would suffer as AT&T and Verizon would evolve into a "duopoly" and control more than three-quarters of the market and 90 percent of the profits
  • The merger (or "takeover" depending on which side you're on) would drive up prices and drive down innovation
  • Sprint and regional, independent wireless carriers would suffer even more as AT&T's increased market position would "exclude competitors, raise their costs, restrict their access to handsets, damage their businesses and ultimately to lessen competition"

Susan Z. Haller, vice president of litigation at Sprint, said in a statement:

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.

Sprint had a victory of sorts last week when the Department of Justice filed a lawsuit first against the merger. Thus, Sprint's lawsuit was filed in federal court in Washington, D.C. as a related case.

The nation's fourth largest mobile provider has had some difficulty in wrangling in supporters as some major tech heavyweights have spoken out in favor of AT&T. Although the FCC admitted some reservations following the DOJ's announcement of a lawsuit, there is still the possibility that AT&T will win out -- regardless of Sprint or other suits filed at this point.

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Topic: Telcos

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  • RE: Sprint jumps onboard with DOJ; files suit against AT&T, T-Mobile

    I hope the merger is defeated. I'm an AT&T customer who is fed up with AT&T (not with the service, I think that is good, but with the customer support and pricing of AT&T) and was looking at jumping to T-Mobil before the merger. When the merger was announced I decided to sit tight. Hopefully it will be ruled against and I can move to T-Mobile. I have an unlocked phone that I bought without carrier support, and so I can jump ship anytime.
    mgrubb@...
  • Sprint ! From AT&T as fast as possible...

    AT&T is a joke. I am in a well populated area of So Cal and get nothing but Emergency Calls Only , choppy calls that drop , or the phone shows ringing a number I entered , but nothing actually happens !
    AT&T should be put out of it`s misery (and all GSM networks) they are inferior technology.
    Verizon (CDMA) NEVER had this problem.
    Bufbarnaby
    • RE: Sprint jumps onboard with DOJ; files suit against AT&T, T-Mobile

      @Bufbarnaby
      in Europe GSM networks don't have these issues so it must be some AT&T crap.
      The Linux Geek
    • RE: Sprint jumps onboard with DOJ; files suit against AT&T, T-Mobile

      @Bufbarnaby GSM is inferior? That's silly, you are silly. GSM is easier to maintain, way better network bands, and switching to a new phone is as simple as popping out a SIM card out of your old phone in putting it in your new phone. Can't do that with CDMA. Oh yea and the rest of the world is on GSM, we happen to be one of the only countries that still use CDMA.
      Bates_
  • Sprint - the carrier looking for relavence.

    I can't remember the last time I saw a Nextel/Sprint phone.

    Seriouslly, they're all Verizon, T-Mobile, or AT&T.
    William Farrell