Sprint Nextel 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, in a statement. “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.
Source: Sprint Nextel
Related articles:
Analyst: With or without AT&T/T-Mobile merger, Sprint has already lost – September 6, 2011
Why killing AT&T Mobility’s T-Mobile USA deal is a very good thing – September 6, 2011
U.S. DOJ sues to block AT&T’s $39 billion acquisition of T-Mobile USA – August 31, 2011
Sprint hiking early termination fee to $350 ahead of rumored iPhone 5 – August 31, 2011
I know Sprint had its attorneys preparing this lawsuit long before the DOJ filed their action to stop the merger, but it’s curious that Sprint would press forward with it rather than either let the DOJ’s lawsuit do the dirty work or join in on that one.
Gotta love the PR spin on how Sprint is “continuing that advocacy on behalf of consumers and competition,” rather than stating the obvious – that self-preservation is the true motive behind filing this lawsuit.
Totally agree with the latter…
Making your self seem disingenuous, when it really isn’t necessary, is #12 on the list of things Steve -wouldn’t- do.
Admitting that the move was self preservation would have been truthful, reasonable and understandable.
I am very happy that our government is looking out for u on this one. And I am okay with giving Sprint credit on this.
Describing AT&T as just the #2 mobile phone provider is like calling GE just a light bulb company.
just my $0.02
I honestly do not understand how anyone can say this merger would end in “less innovation.”
Just get the iPhone to T-Mobile.
Tmobile is doomed.
They are losing customers left and right.
They use weird spectrum-so iPhones don’t work on 3G. Apple is not going to put a new radio in the iPhone just for tmobile.
Sprint is also circling the drain.