Market Overview

Sprint Complements DOJ, Files Lawsuit Against AT&T – T-Mobile USA Merger

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It was only last week when the United States Department of Justice filed a lawsuit seeking to block AT&T's proposed acquisition of T-Mobile USA.  Sprint now has announced its own suit against the proposed merger as a related case to the Department of Justice's. 

The was filed Tuesday in federal court in the District of Columbia stating the merger of AT&T and T-Mobile USA would violate Section 7 of the Clayton Act. 

"Sprint opposed AT&T's proposed takeover of T-Mobile," said Susan Haller, Vice President-Litigation of Sprint, in a press release. "With today's legal action, we are continuing that advocacy of behalf of consumers and competition, and expect to contribute our expertise and resources in proving that the proposed transaction is illegal. "

Sprint's new lawsuit brings three main points of interest that are similar to the reasons that company has previously stated.

  • 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.

Since the proposed acquisition of T-Mobile USA by AT&T has been announced Sprint has shown major opposition to the deal. With lawsuits coming from the U.S. Department of Justice and Sprint the merger has hit yet another roadblock. 

AT&T claims that the merger will help its network with more open spectrum which will improve wireless service for its subscribers while also allowing its 4G LTE network to reach more people. AT&T also claims that if successful the merger will create tens of thousands of jobs in the U.S.



The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: AT&T Department of Justice lawsuit Sprint T-MobileLegal Tech

 

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