Sprint logo

Sprint has been one of the most outspoken opponents of AT&T's proposed acquisition of T-Mobile ever since the deal was announced back in March. Today the Now Network further cemented its stand against the merger, filing suit in attempt to have it blocked. The lawsuit, which has been brought against AT&T, AT&T Mobility, Deutsche Telekom, and T-Mobile, alleges that AT&T's acquisition of T-Mobile would be a violation of Section 7 of the Clayton Antitrust Act and that it would do harm to consumers and competition here in the U.S. Sprint specifically claims that a combined AT&T-Mobile 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.

This lawsuit comes less than a week after the U.S. Department of Justice filed suit against AT&T's buyout of T-Mobile. Sprint's suit has been filed in a Washington D.C. court as a related case to the DoJ's complaint. Considering how strongly the Now Network has opposed the AT&T-Mobile deal, it's not much of a surprise to see Sprint take the next step in its fight and file suit alongside the Department of Justice. Neither AT&T nor T-Mobile has commented on Sprint's suit, but we'll update you if they do.

UPDATE: AT&T has issued a response to Sprint's lawsuit, saying that it will "vigorously contest this matter in court." The full statement is as follows:

"AT&T Statement on Sprint Lawsuit
 
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."

 

Sprint Files Suit to Block Proposed AT&T and T-Mobile Transaction
WASHINGTON (BUSINESS WIRE), September 06, 2011 - 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.
About Sprint Nextel

Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 52 million customers at the end of 2Q 2011 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. Newsweek ranked Sprint No. 6 in its 2010 Green Rankings, listing it as one of the nation’s greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint.


Don't forget to VOTE! Each week, PhoneDog Fans vote for their #1 smartphone in the Official Smartphone Rankings. Vote now and contribute to the industry's most relevant weekly ranking charts


Related posts



Comments & discussions  

62 Reactions to this post

"Should Sprint get involved in the AT&T/T-Mobile drama?"


Please limit your reaction to 140 characters or use comments for a longer reply :)
Add
Thanks for your participation! :)

Eric Quach they should. Sprint will save tmobile's ass from evil att
Chad Allen Sprint shouldnt but the DOJ has every right too and I hope it helps stop the Merger.
Emilio J Burgos Sore losers that's sprint for ya but T-Mobile should keep to them self
Mandel McGuire No. Less carriers leads to less phone to chose from. And higher prices. How many different smartphones would their be with 3 major carriers?
Dwight L. Burton They already did.
Rodger Samiie Myers I personally hope that Tmobile gets bought out...there services are low grade here in Miami, sprint is no better...they are just scared that if AT&T buys sprint...AT&T will be a more stable stronger competition that sprint will be only able to compete with the smaller cellular companies
Oscar Falcon I love the at&t/t-Mobile deal!!!
Fritz Leipold As one of the competitors that would be adversely affected by an ATT takeover of T-Mobile, I think Sprint has a perfect right to file friend-of-the-court briefs, or to register complaints of anti-competitive practice.
Elizabeth Benson I honestly believe that tmobile will be a huge success if this merger does not go through. there are so many dissatisfied att customers. i for one love tmobile, i love their service and their selection of plans and phones. their rates are extremely competititve. i am behind them all the way.
Carson Ash Sprint has every right to step in on this. Dan Hesse is no doubt on the right track and I have a feeling he will be revierred as the man who saved the wireless industry. ATT T-Mobile merger would have huge negative affects on this industry and nation, and those who dont agree are ignorant and should spend some time researching and educating themselves
José J. Landrau YES!!!!!! WE NEED ALL THE HELP WE CAN GET!!!!
Bill Moran I think the better question would be, why shouldn't Sprint be involved? I think the opinions would really get interesting.... :)
Benjamin Padilla Some of the people saying Sprint shouldn't get involved sound so dang ignorant. First of all, Sprint has been publicly opposed to this deal as soon as it was announced. Second, Sprint is not only trying to protect their company from a duopoly taking over the market, but they are actually protecting the cell phone market from large price hikes and less innovation.
Peggy Coe Brooks Definately so, they have valid concerns and it's good to have a voice to speak for those of us that see it. Gooo Sprint!
Vincent Hung Tmobile is amazing! don't know why anyone would want att to buy them out
Jason Weaver Yes, if they have an ounce of brains!
Micah Madru I'm happy with companies that want to try and block this terrible merger. It's a merger that would put a duopoly in the US, a GSM monopoly, AND kill thousands of jobs in the midst of a recession. This merger is terrible for everyone but AT&T and Verizon.
Ryan Obrien Sprints coverage= trash
Elizabeth Benson Sprint should do whats best for them, and I am only too happy that they are suing att. I would rather have the choice to LEAVE a carrier, than few choices.
Josh Rankin Sprint would be involved whether they wanted to be or not. They have an obvious interest in the future of the mobile market.
Kevin Graham Sure, why not reunite all the parts of MaBel, eliminate all the competition so that the new super cell company can charge the hundreds of dollars a month they would like to be charging.....l
Vladimir Conrado Yeahh cause what att is doing is a monopoly and its not fair soo goooo sprint
Erica Reid Don't get into issues that don't belong to you. You may get more than you bargained for and that's not always good.
Kevin Joel They should!
Adam Knutson Someone needs to buy t mobile. The company to do it is going to need to be big enough to handle it, ie: sprint, verizon, or att. What difference does it make which?
DK Brothers Of course they should. Verizon should get into it also.
Julius Mawoussi No Sprint needs to mind their own business.
Jonathan Rash sprint should not be involved and when i look at sprint i do not see the 3rd Largest carriar i see a carriar that say they are but the just look like the other two cell phone carriars that are trying to get involved like us cellular and cricket wireless
Sam Smith Nope.
Jesus Gomez Sprint sucks anyways, even if At& t. T-mobile. Merger dont happen t-mobile is. Still going out of business whitch still puts sprint in dead last
Andre Roberts YESSSSSSSSSSSSSSSSSSSSSSSSSS
Travis Lindley I'm all for it. In most places I've been except major cities, all I have is GPRS coverage. If it all goes through, then I'll be able to send photos and Lo-res video clips on a blazing fast EDGE connecrion! Yay! Tmobile's data is ridiculous. Does ATT even have GPRS anywhere anymore?
Kyle Murzin Noooooooooo
Rene Ferretti Jr. sure, why not? it's free public advertisement, LOL
Scott Showalter Gotta love Sprint's dedication to this effort...
Michael Petrus if they take away the t-mobile girl in this merger i'm going to sprint
JL Perez Nope they should keep their noses off the matter, the truth is this company is literally shiting in their pants right now due to this supposed merger. They have no weight to throw around their afraid of this deal falling through because it will be their demise, it will impossible for them to compete.
Steve Hartsock Sprint buy out AT&T? LOL. It will never happen. Sprint is bleeding customers left and right. Good luck with that one.
Peter Pain Ferguson im a tmobile costumer and not too fund of at&t so if this deals goes through im leaving. sprint will be at a disadvantage so yea they should fight it
Justin Crouch What does it matter., they don't need to get involved.
Toni Roseneau I don't like AT&T or TMoble or Sprint but I think it sucks bc all this mess is making my AT&T stock drop!! Government needs to stay out of it!!!!!
Ramon Quintero Yes they should. The merger affects them In a way
Ron Scott If this deal goes through sprint will be crushed. Verizon and AT&T will hold 90% of mobile profits. The rest to be split amongst Sprint, Cricket, Virgin, and all of those "burner" phones. They are protecting their best interest. Also, anything that stops AT&T from buying T-Mobile and killing all competition is good to me.
Carlos Quinones Well Sprint is 3rd out of the major US carriers. If this happens they'll be last so I guess that's a good reason. But this merger never sounded good to begin with. Unless att adopts some of the cheaper plans tmobile has. But it didn't seem like that would happen so it would've been a bad for loyal tmobile customers and new ones alike
Robbie Piccione NO, and I think it should go the other way around (Sprint buys out AT&T).
Steve Williams they should match tmo plans to let customers switch easier
Sean McCollum Once the DOJ stepped in, any other company supporting will just make it a bigger win.
Marlon Gomez Yes thank you Sprint
Evan E. Roberts Yes. Definitely yes.
Aaron Couts I don't see why not, one they went through it with nextel, and two they are protecting themselves. Sad thing is at this point this merger is damn if you do and damn if you don't.
Jeff Smith I don't know a single Tmo customer who wants this to happen, so I'm happy to have Sprint weighing in.
Mohamed Ahmed the more the merrier
Bobby Stephens No just let att do their business already, funny how nobody really said anything when they bought tmobile, but when they start moving forward now everybody has to have a say so now, its rediculious
Steve Hartsock No, they shouldn't. They have enough problems on their own.
Mahir Zaman YESSSSSS
Danielle Duvall no..... i love tmobile by the way. but i don't think they should get involved.




Most popular Videos
Most popular Videos
Most popular Videos

Most popular Reactions
Most popular Reactions
Most popular Reactions

This weeks "People's Choice Rankings" best smartphones
People's Choice Rankings


See all hot devices