Sprint files lawsuit to block AT&T/T-Mobile merger

It's no secret that Sprint, the nation's third largest wireless phone carrier, has been highly critical of the proposed merger between the nation's largest carrier AT&T with the fourth biggest carrier T-Mobile. Today Sprint took those complaints to the next level. It announced today that it has filed a lawsuit in the District of Columbia that seeks to block the merger, which AT&T said will cost $39 billion.

Sprint listed several reasons behind its lawsuit. One was it felt that an AT&T/T-Mobile merger would "harm retail consumers and corporate customers by causing higher prices and less innovation." It also feels that if a merger is approved and goes through, AT&T and the nation's second largest wireless carrier Verizon Wireless "would control more than three-quarters of that market and 90 percent of the profits." Finally Sprint Nextel claims that the merger would also allow AT&T and Verizon to "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."

Last week the US Department of Justice filed its own lawsuit attempting to block the AT&T/T-Mobile merger, citing reasons that are similar to Sprint's legal action filed today. AT&T said that it was "surprised and disappointed" by the Justice Department's lawsuit and said it plans "to vigorously contest this matter in court." One possible solution is that AT&T could sell off some of T-Mobile's assets to other parties before it merges with the rest of the company.

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20 Comments

JSYOUNG571 said,
YES!!!! I am so glad they are doing this. If they will win remains in question.

most likely they will win the case... i am hoping for it..... what I am worried is if ATT loses they would have to pay 3bn which could burden the ATT customer.

still1 said,

most likely they will win the case... i am hoping for it..... what I am worried is if ATT loses they would have to pay 3bn which could burden the ATT customer.

Well, it's not like AT&T would have taken that money and done anything that would have benefited the customer... They don't have much of a reputation of upgrading their equipment or services...

Honestly, I'm hopeful this doesn't go through. It helps not one cellular customer on any network. Only AT&T Corporate.

I as an AT&T customer want the merger to happen. More coverage for me. Sprint clearly is throwing a hissy fit. I am sure they wouldn't be opposed to being merged with Verizon to compete.

Nexus69 said,
I as an AT&T customer want the merger to happen. More coverage for me. Sprint clearly is throwing a hissy fit. I am sure they wouldn't be opposed to being merged with Verizon to compete.

That's a little bit of a self centered way of looking at it, you have to look at it as an industry as a whole, not just who you are writing checks to this month..... this could potentially cause problems with AT&T hording even more bandwidth they will never used and gobble up T-Mobile just to get rid of them... AT&T has a history of buying bandwidth then never using it

Nexus69 said,
I as an AT&T customer want the merger to happen. More coverage for me. Sprint clearly is throwing a hissy fit. I am sure they wouldn't be opposed to being merged with Verizon to compete.

Clearly you don't understand the issue. This is a very costly and complex industry to enter. With a tremendous regulatory burden. In simpler terms, the odds of a new competitor stepping up are slim... Less competition means higher prices for everyone. Including you. This is a very, very bad thing for everyone...

Nexus69 said,
I as an AT&T customer want the merger to happen. More coverage for me. Sprint clearly is throwing a hissy fit. I am sure they wouldn't be opposed to being merged with Verizon to compete.
One lousy parameter and you get your hard on. I wonder how far you have got in your life with this kind of thought process.

Shadrack said,
Looks like T-Mobile is one step closer to that 3 Billion cash prize if the AT&T merger doesn't go through.

Really hope AT&T has to pay the break up fee and AT&T doesn't get to just walk away from the deal without having to pay anything to T-Mobile.

figgy said,

Really hope AT&T has to pay the break up fee and AT&T doesn't get to just walk away from the deal without having to pay anything to T-Mobile.

I don't. AT&T's prices are already high enough. Why would I want them to blow $3 billion on nothing? That's like telling a car dealer you think you're going to buy a $30,000 car from them, and if you don't you'll give them $5,000. That's just dumb.

The merger announcement is hurting T-mobile in terms of the their employee & dealer turnover, In addition, some customers are refraining from getting tmobile compatible smartphone just because they have to change phones if the merger goes through. So its reasonable compensation.

xpxp2002 said,

I don't. AT&T's prices are already high enough. Why would I want them to blow $3 billion on nothing? That's like telling a car dealer you think you're going to buy a $30,000 car from them, and if you don't you'll give them $5,000. That's just dumb.

I honestly don't think you'll see an impact... The money would just be sitting in the bank. Not like they would have actually used it to do something crazy like upgrade they're network or improve customer experience...

why is everyone hating on atnt. it's stupid to have too much competition out there and believe that they are helping.

small competition hurts innovation. you get a bunch of engineers and pay them a lot of money to come up with something new but then can't back them up when they do because you don't have the funds. if there is less competition then the same engineers are working for bigger companies which can back them up if need be.

verizon and atnt will never let the other slack off or try to hike prices up too much. this is enough competition for cellphones. if they end up doing it all wrong one of the other giant companies (apple, google, hell take your pick...) will step in and give them a wake up call.

capr said,
verizon and atnt will never .... try to hike prices up too much

Ahahahahahaha...

Oh, you're killing me!

Seriously.... That is ranking on the list of 'dumbest things I've ever read.' Telecom companies do not have a history that should make you think anything of the sort.

capr said,
why is everyone hating on atnt. it's stupid to have too much competition out there and believe that they are helping.

small competition hurts innovation. you get a bunch of engineers and pay them a lot of money to come up with something new but then can't back them up when they do because you don't have the funds. if there is less competition then the same engineers are working for bigger companies which can back them up if need be.

verizon and atnt will never let the other slack off or try to hike prices up too much. this is enough competition for cellphones. if they end up doing it all wrong one of the other giant companies (apple, google, hell take your pick...) will step in and give them a wake up call.


This deserves Joker's "Not sure if serious" look.

http://images1.wikia.nocookie....s/6/6a/NotSureIfSerious.jpg

capr said,
why is everyone hating on atnt. it's stupid to have too much competition out there and believe that they are helping.

small competition hurts innovation. you get a bunch of engineers and pay them a lot of money to come up with something new but then can't back them up when they do because you don't have the funds. if there is less competition then the same engineers are working for bigger companies which can back them up if need be.

verizon and atnt will never let the other slack off or try to hike prices up too much. this is enough competition for cellphones. if they end up doing it all wrong one of the other giant companies (apple, google, hell take your pick...) will step in and give them a wake up call.

I hope AT&T is paying you a lot of money to write such a statement; if not..... you are really clueless.

Well I don't want Sprint to go out of business. I love my Motorola Triumph from virginmobile plus 45 bucks month I save tons of money...

there is legal questions and answers to this debate. t-mobile is sitting on their butts and just laughing it up. the mother company of t-mobile already put them on list but knowing deutsche telekom they will just eat up at&t. germany is a very progressive and proactive country when they tend to one their leading industries so do not think that they will just sit in the background for too long. i prefer deutsche telekom to buy out at&t. they both have and use the same basic technologies and this the whole point of the merger. with the economic conditions worldwide it has become a cut throat mentality so conglomerates such as these have to look for cutting costs and streamlining the whole concept.

look at tthis website: http://www.t-mobile.de/ and translate it.

look at this as well: http://www.telekom.com/dtag/cms/content/dt/en/6908

you know that they have something up their sleeves.


belto said,
there is legal questions and answers to this debate. t-mobile is sitting on their butts and just laughing it up. the mother company of t-mobile already put them on list but knowing deutsche telekom they will just eat up at&t. germany is a very progressive and proactive country when they tend to one their leading industries so do not think that they will just sit in the background for too long. i prefer deutsche telekom to buy out at&t. they both have and use the same basic technologies and this the whole point of the merger. with the economic conditions worldwide it has become a cut throat mentality so conglomerates such as these have to look for cutting costs and streamlining the whole concept.

look at tthis website: http://www.t-mobile.de/ and translate it.

look at this as well: http://www.telekom.com/dtag/cms/content/dt/en/6908

you know that they have something up their sleeves.


DT wants out of the US. They have no interest in AT&T nor does AT&T have any interest in selling. If the merger fails, DT will still be looking to unload T-Mobile USA and they will have 3 billion more in the bank.

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