It's On: Sprint Asks U.S. Government to Block AT&T Purchase of T-Mobile

Sprint Nextel S has requested that the U.S. government block the $39 billion sale of T-Mobile USA to rival AT&T T, noting that it would harm competition. The deadline for initial responses to AT&T's application to purchase T-Mobile was Tuesday, and Sprint wrote strongly to the Federal Communications Commission. "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." AT&T struck a deal with Deutsche Telekom to purchase T-Mobile in March. It has yet to pass regulatory approval. Sprint CEO Dan Hesse has previously expressed doubt in the deal. "I do have concerns that it would stifle innovation, and too much power would be in the hands of two," he told a wireless conference in March. According to a Reuters report, "Sprint complained in its filing that the deal would create an effective duopoly in the U.S. wireless market as AT&T's market share would rise to 44 percent from 32 percent. Verizon Wireless would be No. 2 with 35 percent followed by Sprint with an estimated market share of 15 percent." The $39 billion purchase price would entail $25 billion in cash and $14 billion in stock. "This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation's future," Randall Stephenson, AT&T Chairman and CEO said when the deal was announced. "It will improve network quality, and it will bring advanced LTE capabilities to more than 294 million people. .. During the past few years, America's high-tech industry has delivered innovation at unprecedented speed, and this combination will accelerate its continued growth."