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.