Sprint Files Suit to Block Proposed AT&T and T-Mobile Transaction
Sprint Nextel today brought suit against AT&T, Inc., AT&T Mobility, Deutsche Telekom and T-Mobile seeking to block the proposed acquisition.
The lawsuit was filed in federal court in the District of Columbia as a related case to the Department of Justice?s (DOJ) suit against the proposed acquisition.
"Sprint opposes AT&T?s proposed takeover of T-Mobile," said Susan Z. Haller, vice president-Litigation, Sprint. "With today?s legal action, we are continuing that advocacy on behalf of consumers and competition, and expect to contribute our expertise and resources in proving that the proposed transaction is illegal."
Sprint's lawsuit focuses on the competitive and consumer harms which would result from a takeover of T-Mobile by AT&T. According to the company, the proposed takeover would:
- Harm retail consumers and corporate customers by causing higher prices and less innovation.
- Entrench the duopoly control of AT&T and Verizon, the two "Ma Bell" descendants, of the almost one-quarter of a trillion dollar wireless market. As a result of the transaction, AT&T and Verizon would control more than three-quarters of that market and 90 percent of the profits.
- Harm Sprint and the other independent wireless carriers. If the transaction were to be allowed, a combined AT&T and T-Mobile would 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.
The Justice Department last week filed a lawsuitchallenging the AT&T deal. It argued that eliminating T-Mobile as a competitor would hurt consumers by raising prices. The government challenge came five months after the deal was announced. AT&T has promised to fight the Justice Department in court.
"Sprint opposes AT&T?s proposed takeover of T-Mobile," said Susan Z. Haller, vice president-Litigation, Sprint. "With today?s legal action, we are continuing that advocacy on behalf of consumers and competition, and expect to contribute our expertise and resources in proving that the proposed transaction is illegal."
Sprint's lawsuit focuses on the competitive and consumer harms which would result from a takeover of T-Mobile by AT&T. According to the company, the proposed takeover would:
- Harm retail consumers and corporate customers by causing higher prices and less innovation.
- Entrench the duopoly control of AT&T and Verizon, the two "Ma Bell" descendants, of the almost one-quarter of a trillion dollar wireless market. As a result of the transaction, AT&T and Verizon would control more than three-quarters of that market and 90 percent of the profits.
- Harm Sprint and the other independent wireless carriers. If the transaction were to be allowed, a combined AT&T and T-Mobile would 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.
The Justice Department last week filed a lawsuitchallenging the AT&T deal. It argued that eliminating T-Mobile as a competitor would hurt consumers by raising prices. The government challenge came five months after the deal was announced. AT&T has promised to fight the Justice Department in court.
