Sprint, currently the third largest wireless phone carrier in the US, is officially objecting to the proposed merger of two other companies, AT&T and T-Mobile. Bloomberg reports that Sprint filed a petition with the Federal Communications Commission asking the regulators of the airwaves to not allow the merger, first announced by both companies last March, to take place. Sprint statement said, "AT&T’s takeover of T-Mobile must be blocked."
Not surprisingly, Sprint believes that the merger of the number two and number four wireless carriers in the US will increase prices for consumers while also decreating competition. AT&T said the merger with T-Mobile will be worth $39 billion when it is completed. The FCC is currently looking over the proposed merger and it may be a year before the merger is approved.
Not everyone believes the AT&T-T-Mobile merger deal is a bad idea. In another letter sent to the FCC today, the group called the Communications Workers of America claims that the merger will result in the creation of 96,000 new jobs and will also lead to better adoption of fast Internet access for its customers.
Even with the official Sprint response to the proposed merger, an analyst doesn't think that it will have much effect. Christopher King from Stifel Nicolaus & Co. is quoted as saying, "I am not sure a No. 3 player painting a doom and gloom scenario is necessarily going to sway the Department of Justice and FCC." For its part an AT&T spokesperson said of Sprint's response, "Strong support for the AT&T-T-Mobile merger has been voiced by dozens of community, civic and minority organizations, 13 governors, multiple labor unions and several members of Congress."