04:41 PM
Connect Directly
Don't Miss The All Analytics Academy: Analytics for All - A Right Start
Jun 07, 2016
Whether your organization is considering the use of big data and analytics, or has taken its first ...Read More>>

Sprint Sues To Stop AT&T, T-Mobile Deal

AT&T's bid for T-Mobile will harm consumers and corporate customers through higher prices and diminished innovation, Sprint said.

Drafting on the waves made last week by the Department of Justice's antitrust lawsuit to block AT&T's proposed $39 billion acquisition of T-Mobile, Sprint Nextel on Tuesday filed its own legal complaint to halt the deal.

Deputy attorney general James M. Cole objected to AT&T's proposal on the grounds that it would limit competition in the the telecommunications industry and harm consumers. Sprint is making a similar argument.

"Sprint opposes AT&T's proposed takeover of T-Mobile," Susan Z. Haller, VP of litigation at Sprint, said in a statement. "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 claims that the proposed takeover would harm consumers and corporate customers through higher prices and diminished innovation, strengthen the AT&T/Verizon duopoly, and weaken Sprint and other independent wireless carriers.

In the complaint filed in Washington, D.C., Sprint charges that the acquisition of AT&T would remove "a low price and innovative maverick competitor," that Verizon would be more likely to cooperate with AT&T than compete with it, and that Sprint would be further marginalized, more limited in its ability to obtain desirable handsets like the iPhone, and more dependent on AT&T and Verizon for network backhaul and roaming.

AT&T senior EVP and general counsel Wayne Watts last week expressed surprise at the Department of Justice's objection to its proposed deal and requested an expedited review of the merger. Watts insisted that the deal would help improve wireless service for millions, allow AT&T to bring 4G LTE technology to another 55 million Americans, and result in billions of investment and tens of thousands of jobs.

The Communications Workers of America expressed support for AT&T's position last week, and skepticism about the future of T-Mobile. CWA telecommunications policy director Debbie Goldman in an emailed statement said that T-Mobile has no future as an independent entity. The company is losing customers and money, she said. She condemned Sprint for outsourcing and offshoring its customer service work, and drew a contrast with AT&T, "the only union wireless company [that] respects workers' rights."

If AT&T's bid for T-Mobile is denied by regulators, the company will be obligated to pay a break-up fee of about $6 billion to T-Mobile parent company Deutsche Telekom.

At the 2011 InformationWeek 500 Conference, C-level executives from leading global companies will gather to discuss how their organizations are turbo-charging business execution and growth--how their accelerated enterprises manage cash more effectively, invest more wisely, delight customers more consistently, manage risk more profitably. The conference will feature a range of keynote, panel, and workshop sessions. St. Regis Monarch Beach, Calif., Sept. 11-13. Find out more and register.

Comment  | 
Print  | 
More Insights
Threaded  |  Newest First  |  Oldest First
InformationWeek Elite 100
InformationWeek Elite 100
Our data shows these innovators using digital technology in two key areas: providing better products and cutting costs. Almost half of them expect to introduce a new IT-led product this year, and 46% are using technology to make business processes more efficient.
Register for InformationWeek Newsletters
White Papers
Current Issue
2016 InformationWeek Elite 100
Our 28th annual ranking of the leading US users of business technology.
Twitter Feed
InformationWeek Radio
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.