Last week we reported that the United States Department of Justice filed a lawsuit to block the proposed AT&T/T-Mobile merger. For the most part the DOJ’s suit said that the proposed merger would stifle competition and be unfair to consumers.
In Today’s filing by Sprint they flat out call it illegal. Susan Z. Haller, Sprint’s Vice President of Litigation said in a prepared statement:
“Sprint opposes AT&T’s proposed takeover of T-Mobile. 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.”
More after the break
Sprint has been a very vocal opponent of the AT&T/T-Mobile merger. Until now though their thoughts have just been echoed in statements, letters and through the press. Now Sprint has decided to take it to the coutroom.
Sprint’s lawsuit suggests the following:
- 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.
What do you think? Is Sprint right or should they keep their noses out of it?