Sprint Sues to Prevent AT&T Acquisition of T-Mobile

Sprint Sues to Prevent AT&T Acquisition of T-Mobile

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Sprint today sued AT&T and Deutsche Telecom seeking to block the proposed T-Mobile acquisition of T-Mobile citing 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 company says 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.

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Sprint Sues to Prevent AT&T Acquisition of T-Mobile

Reverend - September 8, 2011 at 6:37pm
Sprint is all butt hurt because they've been trying to acquire t-mobile for the past 5 years or so and could never make it happen. I live in Sprints home town and their service is nothing but crap, they're losing millions a year, they can't keep their employees....I don't see Sprint being around another 5 years due to their current business practices.
Tom - September 6, 2011 at 8:56pm
Nonsense! There would be nothing illegal about said acquisition. It may ultimately be blocked by the government, but not because it is illegal.
Luciano - September 6, 2011 at 9:46pm
They are just scared . I don't T-moble is worth $39 billion dollars? T-mobile is not going to compete with Att or Verizon..specially since they dropped their unlimited data plan. Who gives a fuck..just to get a samsung Galaxy S.They offered me 3 of them for FREE to sign up.. You have no iPhone you have you loose my business . Thinking to switch to sprint for their unlimited data plan !! So att is doing a favor to T-mobile ,giving them a chunk of money for this unprofitable company . I said I were att I would drop the cost $$70 for unlimited data and txt and talk.. Watch Ill guaranty they wil have Verizon and Sprint sign up... What u think ?
Stu - September 6, 2011 at 10:56pm
You are both rather uninformed and rather incorrect. An AT&T take over of tmo would indeed be a monopoly, AT&T would own 90%+ of ALL gsm towers. thus monopoly. VZW and AT&T would occupy 90+% of mobile market, thus duopoly. These types of things stifle competition and innovation. The stifling of competition will give those 2 companies the ability to collude in the area of price which means my costs will invariably rise greater than the rate of inflation and for worse service than I have now. Basically who is going to stop them? You? Not likely. The fed? Once the buyout happens, it will take 50 years for collusion charges to be brought and then what? Slap on the wrist. Break-up the AT&T network???? That sounds really familiar doesn't it? With any luck this bs will not be approved. I think DOJ is doing the right thing. With sprint and the other minor carriers to back them up, maybe ma bell's payoffs won't be good enough.
Tom - September 6, 2011 at 11:55pm
You are the one who is incorrect, Stu. Duopolies are not illegal. As I said, the government may ultimately block the acquisition (unlikely), but it would not be illegal. ATT and Verizon will provide adequate competition. The US would be far better off without shit companies like Sprint and T-mobile. Their infrastructure can be put to far better use.
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