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Sprint sues to block AT&T's T-Mobile deal
Published in Saudi Press Agency on 06 - 09 - 2011

US mobile phone carrier Sprint filed a lawsuit Tuesday to block AT&T's proposed 39-billion-dollar purchase of T-Mobile, claiming that the deal would harm consumers by creating a duopoly that would control 90 per cent of the profits generated by wireless providers in the United States, dpa reported.
The lawsuit, filed in a federal court in Washington DC, came a week after the US Department of Justice announced that it would take legal action to block the deal, citing antitrust concerns.
"Sprint opposes AT&T's proposed takeover of T-Mobile," Susan Haller, Sprint's vice president of litigation, said in a statement.
"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."
The proposed deal would combine the second and fourth largest mobile carriers to leapfrog first-placed Verizon as the largest mobile phone company in the US. Sprint, the third largest carrier,
claimed the alliance would "harm retail consumers and corporate customers by causing higher prices and less innovation."
Sprint said the alliance would give AT&T and Verizon unparalleled control over a 250 billion dollar a year industry, where it would control more than three-quarters of that market and 90 per cent of
the profits.
AT&T and T-Mobile have both said they intend to fight the government's lawsuit and that the deal would benefit consumers with lower prices and better networks.


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