Sprint: Block AT&T deal
By Jasmin Melvin |
March 30, 2011, Wednesday
|
Print Edition
Print Edition
SPRINT Nextel urged United States regulators to block AT&T Inc's US$39 billion bid to buy Deutsche Telekom AG's T-Mobile USA, saying the merger would harm consumers.
"This transaction is fundamentally anti-competitive, and you can't fix that with merger conditions," Charles McKee, one of Sprint's vice presidents, said on Monday.
Sprint, the No. 3 US mobile carrier, already faces tough competition from industry leaders AT&T and Verizon Wireless. Combined, AT&T and T-Mobile USA, the No. 4 US operator, would leapfrog Verizon Wireless as the top carrier. The deal would give just two companies - AT&T/T-Mobile and Verizon Wireless - 80 percent of US wireless contract customers.
No. 2 carrier AT&T is often criticized for dropped calls and slow connection speeds.
The US Federal Communications Commission - which aims to extend mobile broadband to virtually all Americans - and the Justice Department are expected to take at least a year to review the proposed merger, and impose significant conditions if they approve the deal.
"The US wireless market is intensely competitive with five or more competitors in 18 of the top 20 markets," AT&T said in a statement.
The Justice Department typically takes a market-by-market look when assessing competitiveness in such mergers. But Sprint will push for a review on a national basis.
"Customers want to use their phones wherever they go," McKee insisted, adding that Verizon, AT&T, T-Mobile and Sprint are the only nationwide carriers.
"This transaction is fundamentally anti-competitive, and you can't fix that with merger conditions," Charles McKee, one of Sprint's vice presidents, said on Monday.
Sprint, the No. 3 US mobile carrier, already faces tough competition from industry leaders AT&T and Verizon Wireless. Combined, AT&T and T-Mobile USA, the No. 4 US operator, would leapfrog Verizon Wireless as the top carrier. The deal would give just two companies - AT&T/T-Mobile and Verizon Wireless - 80 percent of US wireless contract customers.
No. 2 carrier AT&T is often criticized for dropped calls and slow connection speeds.
The US Federal Communications Commission - which aims to extend mobile broadband to virtually all Americans - and the Justice Department are expected to take at least a year to review the proposed merger, and impose significant conditions if they approve the deal.
"The US wireless market is intensely competitive with five or more competitors in 18 of the top 20 markets," AT&T said in a statement.
The Justice Department typically takes a market-by-market look when assessing competitiveness in such mergers. But Sprint will push for a review on a national basis.
"Customers want to use their phones wherever they go," McKee insisted, adding that Verizon, AT&T, T-Mobile and Sprint are the only nationwide carriers.
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