Sprint and AT&T throw down the gloves in battle over T-Mobile’s acquisition by AT&T

Today has been quite the day of press releases and legal filings when it comes to the battle that has ensued since AT&T announced they were trying to acquire T-Mobile USA.  It has been no secret that Sprint was opposed to the merger, and it seems that the Department of Justice is on thier side as well.  In an effort to do all that is possible in stoping this merger Sprint has launched their own legal case citing the following;

“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.”

You can hit the jump to check out the full press release from Sprint.  Now not to be outdone by this AT&T of course had to join in on the party today and released their own statement to counter the on from Sprint.  And of course the response from AT&T is meant to demonize Sprint in their efforts claiming that it will cost thousands of jobs and reduce the cellular service to millions of Americans.

“This simply demonstrates what we’ve said all along – Sprint is more interested in protecting itself than it is in promoting competition that benefits consumers. 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.”

The only real truth that can be taken from any of these statements today is that this battle is going to be a long one with lots of skirmishes and have the potential of us losing one National carrier.  Please make sure that you voice your opinions on this subject by dropping us some comments!

 

Sprint Files Suit to Block Proposed AT&T and T-Mobile Transaction

WASHINGTON–(EON: Enhanced Online News)–Sprint Nextel [NYSE:S] today brought suit against AT&T, Inc., AT&T Mobility, Deutsche Telekom and T-Mobile seeking to block the proposed acquisition as 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 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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