Sprint happy with the demise of AT&T-Mobile merger

Mobile carrier Sprint was understandably happy with yesterdays announcement that AT&T would be dropping it's $39 billion bid to purchase Deutsche Telekom's US subsidiary T-Mobile. The bid will result in AT&T having to shell out $4 billion to T-Mobile under the terms of the contract's cancelation agreement.

Sprint is currently the number three carrier in the US, ahead of T-Mobile and behind AT&T. The proposed merger would have placed AT&T ahead of Verizon and created the nation's largest wireless carrier. It also would have consolidated the number of major GSM providers in the United States to one. Sprint and Verizon currently utilize CDMA. Sprint had put up quite a fight, filing a lawsuit to stop the merger. Verizon had previously indicated they would not oppose the merger, having recently come off the completion of acquiring the carrier Alltel, to put them in the number one spot.

In a statement, Vonya B. McCann, senior vice president of Government Affairs for Sprint expressed the company's pleasure with the decision:

From the beginning, Sprint has stood with consumers who spoke loudly and clearly that AT&T’s proposed takeover of T-Mobile would create an undeniable duopoly that would have resulted in higher prices, less innovation and fewer choices for the American consumer.

Sprint commends the Department of Justice, the Federal Communications Commission and the bi-partisan group of state attorneys general who gave voice to the concerns of consumers across the country. We look forward to competing fiercely in the robust, competitive market that exists today and continuing to deliver the world class service and products that consumers have come to expect from Sprint.

Verizon has not issued any press statements about the failure of the merger.

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5 Comments

Happy sprint customer here. Though recently I have been hitting some 'dead spots' in my area and how this still happens (along side major highways and even some semi-populated areas) is beyond me. Not sure what can be done to fix things like this either.

este said,
Happy sprint customer here. Though recently I have been hitting some 'dead spots' in my area and how this still happens (along side major highways and even some semi-populated areas) is beyond me. Not sure what can be done to fix things like this either.

I remember when I had Sprint a few years ago, I moved into an apartment that was in a deadzone. I was within ear shot of their corporate HQ in Overland Park. In talking to engineers, it seems I was right under the tower, and they claim the space directly beneath it gets the worst signal. Thankfully I was able to term the contract without an ETF because of it. Sometimes you just can't win.

Marshalus said,

I remember when I had Sprint a few years ago, I moved into an apartment that was in a deadzone. I was within ear shot of their corporate HQ in Overland Park. In talking to engineers, it seems I was right under the tower, and they claim the space directly beneath it gets the worst signal. Thankfully I was able to term the contract without an ETF because of it. Sometimes you just can't win.

Interesting. One wouldnt really suspect that.
Its just odd to me that driving along the same stretch of open highway every morning and I lose service at the same spot. When a quarter of a mile down the road it goes back to being fine. Frustrating when theres no explanation for it.

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