After over a year’s worth of rumors, we all thought Sprint would be the one purchasing T-Mobile. Instead it was AT&T, which in my opinion makes more sense because of the compatible technologies. One would think Sprint would have something to say about this ordeal and up until now they’ve played the “no comment” card. Although the deal is nowhere near finalized, maybe Sprint has finally realized what this could do to the wireless community.
The merger has as many good points as it does bad. The biggest things to remember is 95-percent coverage for the US, and LTE in the very near future. Most of the bad instances revolve around AT&T’s notorious reputation for high cost and poor customer service, which when compared to the current services being offered by T-Mobile seeks to makes current Tmo customers run. What good would great coverage be if you had to pay an arm and a leg for it, and get poor customer service to boot. Of course since nothing is reality (yet) we can only speculate.
Along with the points above, Sprint seems to be focusing on the fact that if the two carriers merge the sheer size will overtake Verizon which will leave Sprint trailing way behind. I’m not one for politics, I understand what Sprint is saying, and I understand the reason for the merger, and both sides have valid points. You’ll find no favoritism here. Check out the press release below for Sprint’s official Statement.
28 March 2011Sprint Opposes Proposed AT&T Acquisition of T-Mobile USA
Transaction would reduce competition and harm consumers
OVERLAND PARK, Kan. (BUSINESS WIRE), March 28, 2011 – Sprint Nextel [NYSE:S], the nation’s third largest wireless provider and a leader in advanced wireless broadband technologies, announced today its opposition to AT&T’s proposed $39 billion takeover of T-Mobile USA.
The transaction, which requires the approval of the Department of Justice and the Federal Communications Commission, and will likely spark a host of hearings in the U.S. Congress, would reverse nearly three decades of actions by the U.S. government and the courts that modernized and opened U.S. communications markets to competition. The wireless industry has sparked unprecedented levels of competition, innovation, job creation and investment for the American economy, all of which could be undone by this transaction.
AT&T and Verizon are already by far the largest wireless providers. If approved, the proposed acquisition would create a combined company that would be almost three times the size of Sprint in terms of wireless revenue and would entrench AT&T’s and Verizon’s duopoly control over the wireless market. The wireless industry moving forward would be dominated overwhelmingly by two vertically integrated companies with unprecedented control over the U.S. wireless post-paid market, as well as the availability and price of key inputs, such as backhaul and access needed by other wireless companies to compete.
“Sprint urges the United States government to block this anti-competitive acquisition,†said Vonya McCann, senior vice president, Government Affairs. “This transaction will harm consumers and harm competition at a time when this country can least afford it. As the first national carrier to roll out 4G services and handsets and the carrier that brought simple unlimited pricing to the marketplace, Sprint stands ready to compete in a truly dynamic marketplace. So on behalf of our customers, our industry and our country, Sprint will fight this attempt by AT&T to undo the progress of the past 25 years and create a new Ma Bell duopoly.â€
About Sprint Nextel
Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 49.9 million customers at the end of 2010 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. Newsweek ranked Sprint No. 6 in its 2010 Green Rankings, listing it as one of the nation’s greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint.
