In a move that continues to indicate Sprint’s desire to see the end of the AT&T/T-Mobile takeover transaction they have filed suit against AT&T, Deutsche Telekom and T-Mobile USA to block the acquisition. Claiming the deal violates Section 7 of the Clayton Act the lawsuit was filed in the District of Columbia as a related case to the Department of Justice’s own lawsuit against the proposed deal.

“Sprint opposes AT&T’s proposed takeover of T-Mobile,” said Susan Z. Haller, vice president-Litigation, Sprint. “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’s lawsuit focuses on the competitive and consumer harms that would end up resulting from the AT&T takeover of T-Mobile USA emphasizing three main points:

• Harm retail consumers and corporate customers by causing higher prices and less innovation.
• Entrench the duopoly control of AT&T and Verizon, the two “Ma Bell” descendants, of the almost one-quarter of a trillion dollar wireless market. As a result of the transaction, AT&T and Verizon would control more than three-quarters of that market and 90 percent of the profits.
• Harm Sprint and the other independent wireless carriers. If the transaction were to be allowed, a combined AT&T and T-Mobile would have the ability to use its control over backhaul, roaming and spectrum, and its increased market position to exclude competitors, raise their costs, restrict their access to handsets, damage their businesses and ultimately to lessen competition.

One thing is for sure, Sprint isn’t going to let this deal go through without putting up one hell of a fight.

Full Press Release:

06 September 2011