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Leap Wireless aka Cricket, Formally Opposes AT&T/T-Mobile Merger

Prepaid carrier Cricket, via their parent company Leap Wireless, has joined Sprint and Cellular South in a formal opposition to the proposed AT&T/T-Mobile merger.  This comes just 2 days before the next AT&T/T-Mobile congressional hearing.

Leap said in a prepared release: “if approved by regulators, will harm consumers and reduce competition, innovation and investment in the industry.

More after the break

Leap’s CEO Doug Hutcheson  told the Washington Post:
“At the end of the day, we need to innovate and have access to capital resources to do that and if you have that much concentration in cash flow, we won’t be able to do those things,”

Leap’s Vice President of government affairs told Fierce Wireless that while they haven’t met with the other carriers opposing the deal they were open to coordinate with them.

Sprint and their CEO Dan Hesse, was the first to come out in opposition to the proposed merger.  Hesse cited many of the same reasons that Leap has.  Hesse is concerned about customer base, size of the company and that with two driving forces in the wireless industry, vendors will be able to inflate their prices to the point that Sprint, and carriers smaller, won’t be able to afford to continue to build out.

Metro PCS, which would move into the 4th position vacated by T-Mobile, hasn’t formerly come out against the deal however, CFO Braxton Carter said at an investor conference, that MetroPCS was worried about the spectrum AT&T would attain if the deal is approved.

AT&T and T-Mobile’s second round before Congress will be Thursday when they appear before the House Judiciary Committee’s subcommittee on intellectual property, competition and the internet.

Source: Fierce Wireless

Image: Tmonews