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Sprint Nextel Files Formal Application to Block AT&T/T-Mobile Merger

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USA based Sprint Nextel says that it has formally requested the Federal Communications Commission (FCC) to block AT&T's proposed $39 billion takeover of T Mobile USA, noting the Commission's responsibility to protect consumers and the industry against what it says is the kind of anti competitive market control that will result from this transaction.

In its filing, Sprint concluded the proposed acquisition cannot be remedied through proposed divestitures or additonal conditions being applied to the deal.

According to Sprint, the transaction would do nothing to relieve AT&T's purported spectrum congestion. AT&T is already the largest holder of licensed spectrum and unused spectrum and Sprint said that the company had failed to upgrade or invest sufficiently in its network.

Moreover, Sprint claims that AT&T does not need T-Mobile to expand its LTE network to reach 97 percent of all Americans, because its current spectrum holdings and network already reach approximately 97 percent of the population.

"This proposed takeover puts our mobile broadband future at a crossroads," said Vonya B. McCann, senior vice president of Government Affairs for Sprint. "We can choose the open, competitive road best traveled, and protect American consumers, innovation and our economy, or we can choose the dead end that merely protects only AT&T and leads the rest of us back down the dirt road to Ma Bell."

In its filing, Sprint states that the choice is very clear: the proposed transaction must be blocked.


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Tags: sprint nextel  fcc  at&t  t-mobile usa  USA