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Sprint Sues AT&T Over T-Mobile Acquisition

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ATT T-Mobile logoOVERLAND PARK, USASprint filed a lawsuit against AT&T, Deutsche Telekom, and T-Mobile in a bid to prevent a proposed merger of the mentioned wireless carriers.

The complaint was filedby Sprint in the District of Colombia, and is concerned with the Department of Justice’s own antitrust lawsuit filed last week. Sprint being the third-largest wireless carrier in U.S is looking to block the proposed purchase of T-Mobile by AT&T .

Sprint gave the following statement in respect to the lawsuit: “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,” Susan Z. Haller, vice president-Litigation with Sprint.

Sprint strongly believes the merger would adversely affect wireless competition in the U.S and that would be bad for consumers. Points that go against the AT&T purchase of T-Mobile as stated by Sprint are:

  • Prove expensive for retail as well as corporate consumers, with higher prices and less innovation
  • Make an attitude come to life where Oligopoly might become the name-of-the-game, where Sprint claims Verizon and AT&T would have control over three-quarters of the market and 90 % or more of the profits.
  • Sprint also claims the buy-out harming them, as it gives AT&T a very high-hand in the deal and would increase AT&T’s market-share  resulting in competition elimination, raise their costs, and they would keep few handsets exclusive and restrict those models from other carriers.

Executives from Sprint have tried to convince the government how the AT&T-T-Mobile deal could adversely affect its market share and business.

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By , on Sep 8th, 2011 GMT +2


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