Image via CrunchBaseSprint Nextel has finally submitted a formally request to the authorities pleading them to ban the deal of AT&T Inc's acquisition of T-Mobile USA in exchange for $39 billion. The official request stated that this deal "has no public interest benefit" and asserted that it will do nothing but hinder the competitive environment, regardless of whether there are conditions put to the deal or not. Sprint has been condemning this deal prominently because if the deal is done, it will form a new mobile operating leader in the country. The report specifically pointed out that even if FCC puts the condition on AT&T to divest its assets, even than this deal should not be approved.
Image via WikipediaThe official statement of Sprint was submitted on Tuesday which was the deadline to submit applications against AT&T to FCC. The report stated that "the proposed transaction would produce no tangible public interest benefits and would impose serious anti-competitive harms that cannot be remedied through divestitures or conditions."
On the other hand, AT&T declared in a statement that it still has the support of many groups, which include "community, civic and minority organizations," along with 13 governors. In order to put this deal into practice, AT&T needs the approval of FCC and Justice Department. AT&T has stated the chief reason for this acquisition, is to acquire T-Mobile USA's spectrum, which it needs to expand high-speed services along with improving its network performance. Denying the claims, Sprint stated that AT&T has no lack of spectrum. In fact Sprint also added that AT&T's problem is that it has "simply failed to upgrade or invest sufficiently in its network."
The argument that Sprint has brought forward, is that once the deal is put into effect, it will become even more difficult for the consumers to pay for services since the smaller companies will have little or no say in the pricing of the industry. Its biggest fear is that, after the deal, AT&T and Verizon Wireless, will be the only two giant companies having almost 80% of the entire U.S.’s market. This merger of AT&T and T-Mobile USA will boost the market share of AT&T up to 44% from current 32%, as Verizon will also retains its 35%. Hence Sprint has calculated that it, alone, will be left with on 15% of the market share.
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