Sprint officially opposed AT&T/T-Mobile Merger

March 28, 2011
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Sprint has made it official that it plans to challenge the FCC over the sale of T-Mobile USA to AT&T for a reported $39 Billion. According to the press release, Sprint's position is that the sale will reduce competition, limit innovation, and end up hurting consumers. Those are all the usual complaints that come from from a rival company when one of their competitors gets swallowed up by another. But if that's the case, why isn't making exclusive deals and locking down cellphones anti competitive as well?

In Sprint's announcement, the Now Network says that for nearly 30 years, the federal government has acted to break up large corporate communication concerns in an effort to keep US markets open to competition. Sprint feels that competition has fueled innovation, job creation, and investment in the American Economy. And then there's the gloom and doom prophecy that if AT&T is allowed to buy T-Mobile, ALL of that will be undone. All? Really?

Sprint goes on to say that both Verizon and AT&T are already "big enough," and that this merger would make Ma Bell three times larger than poor little Sprint. And Sprint would be powerless to defeat what it calls a "duopoly" that would be entrenched in the wireless market. Well, gee, Sprint. How about being more competitive in your pricing? How about investing more in your network and providing better phones and better customer service? You claim you stand ready to compete in a "truly dynamic marketplace," and maybe you have a point. But I can't help but wonder if you'd be opposed to it if you were in AT&Ts shoes.

The FCC has already come out and said the deal will receive no "rubber stamp." So AT&T indeed has it's work cut out for it in making the deal work according to FCC wishes.

Sprint Opposes Proposed AT&T Acquisition of T-Mobile USA

Transaction would reduce competition and harm consumers

OVERLAND PARK, Kan. (BUSINESS WIRE), March 28, 2011 - Sprint Nextel [NYSE:S], the nation’s third largest wireless provider and a leader in advanced wireless broadband technologies, announced today its opposition to AT&T’s proposed $39 billion takeover of T-Mobile USA.

The transaction, which requires the approval of the Department of Justice and the Federal Communications Commission, and will likely spark a host of hearings in the U.S. Congress, would reverse nearly three decades of actions by the U.S. government and the courts that modernized and opened U.S. communications markets to competition. The wireless industry has sparked unprecedented levels of competition, innovation, job creation and investment for the American economy, all of which could be undone by this transaction.

AT&T and Verizon are already by far the largest wireless providers. If approved, the proposed acquisition would create a combined company that would be almost three times the size of Sprint in terms of wireless revenue and would entrench AT&T’s and Verizon’s duopoly control over the wireless market. The wireless industry moving forward would be dominated overwhelmingly by two vertically integrated companies with unprecedented control over the U.S. wireless post-paid market, as well as the availability and price of key inputs, such as backhaul and access needed by other wireless companies to compete.

"Sprint urges the United States government to block this anti-competitive acquisition," said Vonya McCann, senior vice president, Government Affairs. "This transaction will harm consumers and harm competition at a time when this country can least afford it. As the first national carrier to roll out 4G services and handsets and the carrier that brought simple unlimited pricing to the marketplace, Sprint stands ready to compete in a truly dynamic marketplace. So on behalf of our customers, our industry and our country, Sprint will fight this attempt by AT&T to undo the progress of the past 25 years and create a new Ma Bell duopoly."

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 49.9 million customers at the end of 2010 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 atwww.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint.


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  • http://www.facebook.com/nativex Dalton Rc

    Having been an TMO customer for over 10+ years I’m very scared about this Merger! WTFUDGE!?

  • http://twitter.com/smartconnected Abdul Wahid

    AT&T is dictating how we use the Wireless. Write your congress and stop this deal

  • http://twitter.com/smartconnected Abdul Wahid

    Thank you for choosing AT&T for your business wireless needs!

    This e-mail is a follow-up on the transactions processed today; below is a summary of the changes processed:

    On 3/28/2011, Jaimie M. processed the following changes to your account:

    1. Other
    2. The PDA Enterprise plan Code PDE4 Price $40.00 is not compatible with the HTC Inspire 4G phone.
    The new plans available are as follows.
    Smartphone Personal $30 HSDPPB
    Smartphone Enterprise (add-on) $30 HSEB1
    Smartphone Personal with Unlimited Messaging $50 HSDPX1
    Smartphone Enterprise + Tethering (5GB bucket) Bolt-On $60 HSTR58A

  • http://twitter.com/smartconnected Abdul Wahid

    Thank you for choosing AT&T for your business wireless needs!

    This e-mail is a follow-up on the transactions processed today; below is a summary of the changes processed:

    On 3/28/2011, Jaimie M. processed the following changes to your account:

    1. Other
    2. The PDA Enterprise plan Code PDE4 Price $40.00 is not compatible with the HTC Inspire 4G phone.
    The new plans available are as follows.
    Smartphone Personal $30 HSDPPB
    Smartphone Enterprise (add-on) $30 HSEB1
    Smartphone Personal with Unlimited Messaging $50 HSDPX1
    Smartphone Enterprise + Tethering (5GB bucket) Bolt-On $60 HSTR58A

  • Tonsunoko

    AT&T Mobile would be a disaster for cellular communication as we know it. Prices would go up, quality would go down and unlimited internet will be a thing of the past. Less choice is never a good plan and we all have seen the track record of AT&T. Worst customer service evar! Write your congressman and the FCC and support freedom of the interwebs!!!

  • Blairginley

    so happy that Sprint is standing up against this merger.

    I love my T-Mobile experience of the last 10 years! I don’t want crappy at&t telling where I can install apps from and charging me more for same or worse plan!

  • Blairginley

    so happy that Sprint is standing up against this merger.

    I love my T-Mobile experience of the last 10 years! I don’t want crappy at&t telling where I can install apps from and charging me more for same or worse plan!

  • http://twitter.com/Maghnus Charles Smith

    I left AT&T years ago and they are trying to drag me back. I had Cingular I was happy AT&T bought them I left after my first bill and lousy coverage. I’m with T-Mobile, love there customer service and pricing plan could do with a bit more HSPA+ but I’m okay with that.My last option is Verizon come on thats just crazy.

  • http://pulse.yahoo.com/_NROHHGNFDNJW47HF42XADBZLJM crazythunder

    “Well, gee, Sprint. How about being more competitive in your pricing?” really??? have you seen verizon’s rates and horrible family plans?

  • Jon Garrett

    Did Sprint feel this way when they purchased Nextel (and I lost my damn job !!)

    • http://www.facebook.com/people/Jizzy-Molina/100000440604696 Jizzy Molina

      that fucking sucks balls man .

    • http://www.facebook.com/people/Jizzy-Molina/100000440604696 Jizzy Molina

      that fucking sucks balls man .

  • http://www.facebook.com/people/Jizzy-Molina/100000440604696 Jizzy Molina

    yay sprint i want to keep my t mobile. and if this does go thru im going sprint witch sucks cuz sprint sucks in my town

  • Robert

    Summery: WAHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH

  • http://www.myvouchercodes.co.uk online shopping uk

    After evaluating this a bit more… I’m starting to get the idea that Sprint could be pushing this opposition so that it can get a big chunk of divested T-mobile customers.

    We’ll know a lot more when the govt starts making their conditions. Sprint may have its’ objections disappear overnight once they get a cut of the deal. We could just be pawns in this AT&T and Sprint fight. .

  • Anonymous

    It is difficult to take Sprint seriously on this. They claim that they are opposed to a reduction in competition. This should be a huge opportunity for them. AT@T have such a bad reputation that very few T Mobile customers are going to be thrilled at the idea of being absorbed into AT&T. I believe that over the next 2 years there are going to be 37 million T mobile customers looking for a new home. I think that most of them will let their contracts expire and move over to prepaid operators like Straight Talk, who use the AT@T and Verizon networks but offer a much cheaper service and without a ball breaking contract.