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Sprint Initiates Battle Against AT&T’s Acquisition of T-Mobile USA
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, Sprint.com , Tmobile.com . Published on March 31st, 2011. Written by Debbie Parker.
Sprint made it clear that it is against the AT&T acquisition of T-Mobile USA. As a matter of fact, the purchase will combine the two largest carries in the United States that would entrench the duopoly control of Verizon and AT&T over the wireless market. AT&T is currently making attempts to fix flaws that are available in its network. As for T-Mobile, it is in need of an exit strategy.
If the deal is approved, it will result in a company which has more than 125 million subscribers that will dwarf 49 million customer base of Sprint Nextel. The deal will have to secure approval from the Federal Communications Commissions and Department of Justice. But because it is considered to be a high-profile deal, it will face scrutiny from congress.
Sprint claims that the deal may become the result of an anticompetitive duopoly. The combined company will be much larger than Sprint in terms of wireless revenue. It means that the wireless industry will be controlled by two vertically integrated companies in the wireless post-paid market of U.S.
AT&T responded to Sprint’s claims, revealing that the company is now focused on its own strategy to build its business as well as serve its customers. AT&T is not interested in challenging the business strategies of other carries.
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