Sprint Opposes AT&T Purchase Of T-Mobile USA

WASHINGTON -- Sprint Nextel is urging government officials to block AT&T Inc.'s planned acquisition of T-Mobile USA from Germany's Deutsche Telekom AG.

Sprint, the nation's third-largest wireless carrier, said the proposed $39 billion cash-and-stock deal would create a duopoly market for U.S. wireless services dominated by AT&T and Verizon Wireless.

"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," Sprint said in a statement Monday.

The Justice Department and the Federal Communications Commission could take a year or longer to review the proposed transaction.

AT&T argues that the wireless market would still be "intensely competitive" – with multiple players in most local markets – even with the combination.

Comments

[Musiker]

08:55 AM on 03/30/2011

AT&T should choke.

[SwingingFromCenter]

02:16 AM on 03/30/2011

Sprint is a nationwide carrier.  While I am unhappy with T-Mobile being acquired, it will not create a monopoly or even a duopoly.  While Sprint will be significantly smaller than ATT or VZ, they will still be a nationwide player with their own infrastructure, thus providing 3 nationwide options.

Then there is the issue that there are a myriad of smaller players in the market (Cricket, US Cellular, Boost, Metro PCS, etc.).

This is all just sour grapes on Sprint's part because THEY weren't the ones buying T-Mobile.  What's left unsaid by Sprint is if they had acquired T-Mobile, it would be them that would be forming the nation's largest carrier as opposed to AT&T.  The result would be the same, the names would be different.
This deal will go through.

[snooty]

10:53 PM on 03/29/2011

I agree with Sprint !!! We need to be cutting the size of these corrupt giants and limit their power to suppress competition. At&T needs to be destroyed

[Chicagowill]

10:23 PM on 03/29/2011

I can't count on the debt, but Sprint (like Verizon) uses CDMA and T-Mobile (like AT&T, uh, SBC) uses GSM/GPRS/EDGE. Transitioning all the T-Mo customers to CDMA would have been a nightmare and a half. That, alone, dropped the value of T-Mo to Sprint, unless they wanted T-Mo just for the spectrum. OTOH, SBC uses a relatively compatible technology. Moreover, SBC has the lowest spectrum/subscriber of any of the major carriers. I think they want a neutron takeover, i.e. keep the spectrum and lose the subscribers.
If the takeover does not go through, SBC has to pay T-Mo about $3 billion plus an undisclosed amount of spectrum. If the merger fails, expect the percentage of dropped calls on AT&T to rise. A lot.

[Corey Ferguson]

09:58 PM on 03/29/2011

I have sprint and love them, BUT there are over 30 carriers in the US so there argument seams phony- ZING!!!

[Chicagowill]

10:15 PM on 03/29/2011

Yes, but only two are big enough to count, AT&T and Verizon. Even with T-Mo, they and Sprint are a poor #3 and #4. Without one of them, you have a duopoly. Have you ever searched to find why the word "duopoly" is always paired with the word "cozy"? US Cellular, Virgin, Cricket, Boost, Credo, and the rest are too small to count. Wake up, and smell the monopolistic coffee.

[UberdanSounds]

03:48 PM on 03/29/2011

AT&T's $39 billion proposal to take over T-Mobile is bad news for consumers, and a perfect example of what our anti-trust laws are supposed to prevent. But if Obama's chief of staff Bill Daley is involved, you can bet AT&T will emerge the winner and cell phone users will lose big time.

Daley, who has been called "AT&T's man in the White House," will no doubt use his influence as Chief of Staff in favor of his former employer, AT&T.

I just signed a petition telling Bill Daley to recuse himself from discussions of potential FCC and/or Department of Justice actions regarding the AT&T / T-Mobile merger. You should too, through the link below:

http://act.credoaction.com/campaign/att_merger/?r_by=18679-3074172-bkDxXSx&rc=paste1

[snooty]

10:55 PM on 03/29/2011

Bill Daley needs to NOT meddle in this or there will be HELL to pay.

[jt1980]

01:50 PM on 03/29/2011

I don't think this deal is good for US consumers. It'll reduce the major players in the national wireless market down to 3. Rates will go up.

[joelb5000]

12:57 PM on 03/29/2011

Sprint should worry more about its own customer service before criticizing this merger. If Sprint can't fix its own in-house problems, it won't have to worry about AT&T or T-Mobile. It'll go under with no help from anyone but itself.

[TooKrunk]

02:23 PM on 03/29/2011

It's true. I was a sprint customer for YEARS and I was wronged, flim-flammed and bamboozled.

[Corey Ferguson]

09:59 PM on 03/29/2011

Really? I've been with them for about 6 months and everything about them is way better than tmob. When where you with them?

[IMissAmerica]

12:26 PM on 03/29/2011

Sour grapes, they were trying to buy T Mobile themselves! But no way should this be allowed to go through. As far as i know we still have anti-trust laws in this country.

[2crudedudes]

11:19 AM on 03/29/2011

So let's see, we got AT&T, Verizon (a company that spawned from the divestiture of Ma Bell) and Sprint. Yay "free market"

[Artamentous]

01:12 PM on 03/29/2011

there are other carriers though.. Cricket, and that other one I forget it's name.

Which are in most major markets.

I think this merger is needed, the US Government doesn't have the support to build out a 4g network on it's own, so we need business to do it. This is unfortunaely the best way for America to have 95%+ covereage with speeds over 10mbps(which is still quite slow IMO)

I suspect within 20 years ATT will be broken up again if this merger is allowed to happen. Except by that time this country will have a near universal internet connectivity, something we sorely lack now, and it will be mobile.

[benji85]

06:31 AM on 03/30/2011

Most of the smaller fish are not nationwide providers, which limits their ability to compete.

Even if they were allowed to merge, AT&T will still come to us to front the money for the 4G upgrade.

[jt1980]

01:44 PM on 03/29/2011

One striking thing about the US communication marketplace is its lack of competition.

IMO, that's the primary reason why the USA is lagging infrastructure-wise.

[Robert Turner]

10:44 AM on 03/29/2011

Oh, Sprint. Stop flirting with takeover.

[techy73]

10:21 AM on 03/29/2011

One would think Sprint is hardly a small company, and who offers the best state to state phone connection? AT&T also makes cordless phones-
http://www.cordlessphone-reviews.com

[jt1980]

01:48 PM on 03/29/2011

Sprint is a small company revenue-wise when compared to its competitors. It's 4 times smaller than AT&T and 3 times smaller than Verizon. The T-Mobile deal alone is larger than Sprint's annual revenue.

[J0E1]

09:57 AM on 03/29/2011

The "local market competition" at&t is talking about is a joke.  Those are the local services like cricket that offer dirt cheap plans.  The only problem is you will only have service in your city.  Go outside your service area and good luck.  They also have "new" phones that are at least 3 years behind the technology curve and you pay full price for them.  It's a niche market for those who just want a cheap phone and don't travel. They are no competition for the big 4.  Soon to the the big 2 when the other two shove sprint out of the way.

[Artamentous]

01:13 PM on 03/29/2011

That isn't true... Cricket works in Florida, if you live in Colorado, I know because I did it when I had cricket.

[Corey Ferguson]

10:03 PM on 03/29/2011

Yeah I think the other 30 smaller carriers serve a large portion of the demand in the US and have pretty good phones now, and full US travel package rates.

[spc5]

08:58 AM on 03/29/2011

Sprint has been undervalued for a very long time. Not only does it have a wireless network but it also has a coast-to-coast long distance wireline network for voice and data. Their fiber optic network carries both voice and data which allows the wireless customers to make long distance voice and data connections over the Sprint wireline network. AT&T still has it's long distance wireline arm and Verizon bought MCI/Worldcom to get theirs. T-Mobile is just a wireless company with no wireline assests. Sprint is worth much more than what Wall St. is saying...however most Wall St. analyst are in back pockets of AT&T and Verizon. This duopoly between the former Baby Bells is intended to squash competion and take control of consumers
and their choices. Sprint, will be the only alternative for consumers. Verizon and AT&T will mirror image each other in every way. It is in the best interest of consumers for Sprint to stay strong, it will be the only alternative left.

[Hitchcockcameo]

01:08 PM on 03/29/2011

If the at&t merger with t-mobile goes through, I'm switching to Sprint. I will not be a part of AT&T

[Corey Ferguson]

10:04 PM on 03/29/2011

I left tmob and went to sprint. way better.

[Akuhei]

01:55 PM on 03/29/2011

Sprint has a pile of debt and is hemorrhaging customers. It is not undervalued. They didnt buy T-Mobile themselves because they dont have the money.