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AT&T responds to Sprint's lawsuit

Posted: , by Ian M.


AT&T responds to Sprint's lawsuit
It didn’t take long at all for AT&T to fire back as the nation’s second largest mobile carrier issued a statement in response to the lawsuit filed by Sprint opposing their merger with T-Mobile USA.

Sprint filed their lawsuit just a short time after the Department of Justice filed one of their own. They have been openly against the merger since day 1. In response to the lawsuit, this is what AT&T had to say:

"This simply demonstrates what we’ve said all along – Sprint is more interested in protecting itself than it is in promoting competition that benefits consumers. We of course will vigorously contest this matter in court as AT&T’s merger with T-Mobile USA will: help solve our nation's spectrum exhaust situation and improve wireless service for millions; allow AT&T to expand 4G LTE mobile broadband to another 55 million Americans, or 97% of the population; and result in billions of additional investment and tens of thousands of jobs, at a time when our nation needs them most."

The war of words between opposing carriers has certainly begun and will probably continue throughout the remainder of AT&T’s attempt to acquire T-Mobile USA. What do all of you think about AT&T’s response? We would love to hear what you think in the comments below.

source: Phone Scoop

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posted on 06 Sep 2011, 16:48 9

1. downphoenix (Posts: 3155; Member since: 19 Jun 2010)

typical AT&T response, saying sprint is more interested in protecting itself than in competition? So I guess AT&T is buying out T-mobile so there's more competition, LOL.

posted on 06 Sep 2011, 18:13 2

14. vvelez5 (Posts: 623; Member since: 29 Jan 2011)

ATT buying T-mobile is competition. Government intervention is not competition. If one company is buying another and both companies agree on the deal how is that not competition? That's like saying you can make as much money as you want but you can't buy anything with it.

posted on 06 Sep 2011, 20:30 4

32. remixfa (Posts: 14255; Member since: 19 Dec 2008)

no.. thats business.. and it drastically reduces competition while giving a large player an indiscriminant amount of power when it comes to phone specs, spectrum usage, and usage rates for itself and many regional carriers that roam off of it because now they have no choice.

posted on 06 Sep 2011, 21:26 2

35. vvelez5 (Posts: 623; Member since: 29 Jan 2011)

Of course it's business but it's still competition. Two competing companies face off, one does not want to keep going (or the parent company doesn't want to.) So they decide to sell off their assets to the bidder of their choosing. Usually the highest bidder of course. How was that not competition at work? This isn't a charity, when there is competition, with people or businesses, one or more eventually loses.

posted on 07 Sep 2011, 00:48

42. livingmild (Posts: 15; Member since: 24 Dec 2009)

There's no denying there's competition with respect to buying T-mobile. The problem is there's less competition after the acquisition takes place. 80% of the market between 2 providers isn't competition. It's a monopoly. I'm certain that while in the interim prices will stay the same, but in the long run prices will surely rise and innovation will suffer and jobs will be lost at some point because of redundancy between the two carriers.

posted on 07 Sep 2011, 10:46

51. vvelez5 (Posts: 623; Member since: 29 Jan 2011)

Well it isn't a monopoly it's closer to a duopoly which it still isn't That's like saying since Pepsi and Coke control most of the bottling industry then that's a monopoly or a duopoly when that isn't the case. You still have RC, 7UP, and all the generic brands. But I do see where you're coming from that you will feel that it will stifle innovation. I believe that there will always be another company that will be willing to throw their hat into the ring.

posted on 07 Sep 2011, 11:01

52. darth8ball (Posts: 520; Member since: 02 Aug 2011)

7up is coca cola owned and distributed, and most of the generic brands are made by coke or pepsi. they just get branded differently in the factory. Most gereric brands of food and beverages are made by the name brand manufacturers and sold under a different label for less, Coke and Pepsi sell for more to pay for the advertising that makes you want to buy the higher priced product.

Blows your mind doesn't it?

posted on 07 Sep 2011, 11:20

53. vvelez5 (Posts: 623; Member since: 29 Jan 2011)

Actually 7UP is owned by Dr.Pepper and they are their own company. They use the same bottling factory as Pepsi though. I am aware that many of the generic ones are bottled by many of the name brand companies but they are not owned by them. There is a huge difference between a bottler and a owner. Blows your mind doesn't it?

posted on 07 Sep 2011, 11:29

54. darth8ball (Posts: 520; Member since: 02 Aug 2011)

sorry sprite is coke.

posted on 07 Sep 2011, 21:53 1

60. remixfa (Posts: 14255; Member since: 19 Dec 2008)

no, competition is companies fighting against each other for a customer's business. The merger reduces competition (in my view), but the merger itself is just business. They are related in this instance, but not the same.

posted on 06 Sep 2011, 21:34 2

36. DontHateOnS60 (Posts: 867; Member since: 20 Apr 2009)

In at&t's mind, yes, that's correct, and the reason is because they'll be able to expand their network to compete with Verizon. And if we're going to be honest here, this was never a 4 horse or 3 horse race to begin with. It was always just at&t and Verizon, since they've dominated the industry.

T-Mobile wouldn't be on the market if it wasn't for Deutsche Telekom getting tired of it's investment in T-Mobile. At&t just happened to see it as an opportunity, seeing how T-Mobile owns large chunks of spectrum in areas not well covered by at&t, plus they can use existing infrastructure to build out a better network in areas where both networks exist, not to mention its GSM already. They can also argue that it helps with the spectrum crisis because they would now have new spectrum at their disposal.

So you've got a company who wants to get rid of an investment it made that it doesn't want to deal with anymore, and a company who is looking for a way to expand its network. On paper, it's a great match as a business decision.

As far as the whole jobs thing goes, I'm sure this idea assumes that these jobs will be created through infrastructure building. We're not stupid, we know a T-Mobile store right down the street from an at&t store would be pointless, so it's going to get shut down. Other stores in areas where at&t doesn't have stores, will remain open though. But there's also the jobs that could be created by the companies that at&t buys its telecom equipment from, like Lucent, or Siemens.

That's pretty much how it's viewed from a corporate perspective.

posted on 06 Sep 2011, 16:50 7

2. M1K3YWR19H7 (Posts: 18; Member since: 31 Jan 2011)

sprint just knows that once this goes through no one is going to want to deal with their garbage. At&t's response is perfect and I agree 100%.

posted on 06 Sep 2011, 16:53 3

3. panchi (unregistered)

Thats what i was gonna say...Lol

posted on 06 Sep 2011, 17:00 2

4. Alex (unregistered)

AT&T-Mobile in 2012!!!

posted on 06 Sep 2011, 17:02 6

5. spanky (Posts: 81; Member since: 02 Jun 2011)

AT&T is just playing on the heartstrings now. Prove to me how putting one company out is going to provide more jobs. Are they going to employ all T-mobiles employees, and 3rd party employees? I am just curious to see how this is going to help. Spur growth by removing competition? hmmmmmmm

posted on 06 Sep 2011, 19:12 2

23. Phoneguy007 (Posts: 218; Member since: 02 Jun 2011)

wow.....I think you should tell tmo that ...i mean att is not forcing them to sell they want to sell tmo and thier employees and there customers....

posted on 06 Sep 2011, 17:04 4

6. Mack (unregistered)

The gov is involved now with the lawsuit, so i dont see it going through. Its an awful idea for this deal to go through. Tons of jobs will be lost, much more than will be gained. Nothing, absolutely nothing positive can come from this deal besides at&ts crappy network becoming larger.

posted on 06 Sep 2011, 19:13 2

24. Phoneguy007 (Posts: 218; Member since: 02 Jun 2011)

You think att is crappy try sprint lol....

posted on 06 Sep 2011, 19:36 1

27. S123 (unregistered)

All depends on where ur at...And Att customer service ranks last year in and out,adding an additional 30 million wont help that either

posted on 07 Sep 2011, 01:36

44. Mack (unregistered)

At&t has the worse coverage in my area by far. Verizon, or sprint, and nothing else. Every time im on the line with someone that uses at&t the call drops. Maybe its just my area, but even with good signal the service sucks. Sprint doesnt have the fastest 3g by any means, but it more reliable, atleast it has been for me in the southeast...

posted on 06 Sep 2011, 17:17 2

8. JordanCox (Posts: 21; Member since: 17 Apr 2011)

You can put a thumbs down on this comment if you want. Idgaf. But i've been with at&t for awhile. They get better service than verizon cause i've had verizon too. There customer service may not be the best but there wireless coverage is awesome. I think this deal is a good idea but all the haters are gonna say it's dumb and shouldn't go through.

posted on 06 Sep 2011, 17:28 2

10. exxwing (unregistered)

If AT&T merges with TM, it will just mean more people with atrocious phone service at a premium price. I always know when I'm talking to someone on AT&T. Dropouts, echoes, and that killer half second delay. But you get to pay more for that.

posted on 06 Sep 2011, 17:42 3

11. DOGIEFRESH (Posts: 302; Member since: 15 Jul 2009)

Sprint is loaded of Bulls**t, the purchase was ok when they bid for it but now somebody else got it is bad, maybe they wanna be the Only carrier that screww multiple companies like they did with Nextel...!!!

posted on 06 Sep 2011, 18:03 3

13. Samsung (Posts: 3; Member since: 06 Sep 2011)

Sprint in a way is being hypocrtitical because they BOUGHT Nextel so they should not be caring

posted on 06 Sep 2011, 18:15 3

16. The_Miz (Posts: 1496; Member since: 06 Apr 2011)

Should've figured someone with a name based on a company who copies Apple wouldn't understand. Nextel is a very small company, Sprint buying them would have in no way effected competition and strict regulations set by the croo...I mean government.

posted on 06 Sep 2011, 18:16 2

18. vvelez5 (Posts: 623; Member since: 29 Jan 2011)

You're avatar still is pretty homo

posted on 06 Sep 2011, 21:13 1

34. The_Miz (Posts: 1496; Member since: 06 Apr 2011)

Lol, DBZ is fail.

posted on 07 Sep 2011, 05:47 1

47. justacomment (unregistered)

By the way, are you aware that Sprint and Nextel run off two entirely different networks...Nextel's iDEN Network..which is uncapable of handling things like 4G and the Sprint CDMA Network...Sprint purchasing a struggling Nextel is entirely different from this merger....please take the time to check your facts before being so hard on a company that has to look out for it's own interests, as well as the mobile industry.

posted on 06 Sep 2011, 18:15 2

17. vvelez5 (Posts: 623; Member since: 29 Jan 2011)

Going from 5-4 companies is not a big deal, but 3-4 watch out there's a monopoly a brewin

posted on 07 Sep 2011, 08:52

49. rwolf1984 (Posts: 530; Member since: 06 Jun 2009)

exactly how i see it...Verizon just bought Alltel and that made Verizon's coverage better and Sprint's worse!!!

posted on 07 Sep 2011, 16:49 1

57. darth8ball (Posts: 520; Member since: 02 Aug 2011)

At&t did the same thing when they 'merged' with Cingular Wireless and began to dismantle them in a foul manner. Cingular customers remained Cingular but AT&T took their spectrum and towers that were in good shape (in my area at least) and switched them to the AT&T customers. Cingular fell apart and AT&T got what they wanted for not alot. This is what they want to do again.

Sprint wanted to add the push to talk to their product line and Nextel wanted a better voice network. Sprint did everything they could to keep both companies branded including leaving the Nextel network at it's own website and making it a true merger not a buying out.

posted on 06 Sep 2011, 18:15 4

15. Slammer (Posts: 1515; Member since: 03 Jun 2010)

---" AT&T said, "This simply demonstrates what we’ve said all along – Sprint is more interested in protecting itself than it is in promoting competition that benefits consumers."---

So in other words AT&T, by saying Sprint is interested in protecting itself, you are actually admitting that there is reason to believe an anti-competitive process is being planned on your part? Contrary to your further statement, this would also elevate Sprint's argument to preserve itself as a competitor for consumers to choose and benefit from. Exactly what you claim they should be doing.

John B.

posted on 06 Sep 2011, 18:18

19. vvelez5 (Posts: 623; Member since: 29 Jan 2011)

Saw your post on PhoneScoop, did you do one for engadget and phonedog too?

posted on 06 Sep 2011, 19:50 1

29. alpinejason (Posts: 262; Member since: 06 Sep 2011)


posted on 07 Sep 2011, 08:53

50. rwolf1984 (Posts: 530; Member since: 06 Jun 2009)

Sprint and T-Mobile are competition...they are both the carriers for people with bad credit...

posted on 08 Sep 2011, 16:04

62. danalmillan (Posts: 25; Member since: 08 Jul 2011)

Sprint has already stated they were moving to LTE...why don't you check facts before you criticize?!?! Sprint has a lot more morals than AT&T...look what they did to Cingular after the merger! At least Nextel is still functioning under Sprint! Do you really see AT&T and Verizon running 80% of the market being good for competition??? If you do then you are dumber than your comment makes you sound. Take a few business courses and you will see real quick this merger has BIG ASS MISTAKE written all over it as far as the consumer is concerned!!!!

posted on 06 Sep 2011, 18:34 1

20. bbymguy-21 (unregistered)

this creates a monopoly bc anyone with a sim card who wants international services basically has to go through them mainly business people and athletes. it would cost att a fraction of the money its using buying to just finish building out their lte pipeline.... sprint+ tmobile would have mad them barely the 2nd biggest company which makes it more competitive. but att + tmobile makes them almost 100 million more users than verizon, which makes bad for competition.

posted on 06 Sep 2011, 18:45 2

21. vvelez5 (Posts: 623; Member since: 29 Jan 2011)

But both Sprint and Verizon have global phones. Not to mention Verizon with their LTE handsets are moving more towards SIMcards.

posted on 06 Sep 2011, 18:54

22. Mr.Mr.Upgrade (Posts: 474; Member since: 30 Aug 2011)

It doesn't matter what these losers do, google up the number one carrier, Verizon number one,

posted on 06 Sep 2011, 19:35 2

26. alpinejason (Posts: 262; Member since: 06 Sep 2011)

please stop that crap.they are all a bunch of crooks anyway you look at it.

posted on 06 Sep 2011, 22:59

38. alpinejason (Posts: 262; Member since: 06 Sep 2011)

no just the biggest.

posted on 06 Sep 2011, 19:28 1

25. alpinejason (Posts: 262; Member since: 06 Sep 2011)

listen i do not work for at&t but i can honestly say that at&t is pretty damn good around here.houston and all of texas.even better than verizon.i went to abilene tx and went the hwy 6 route and to be honest there was about 45 min of no verizon coverage about 2 hrs before arriving to abilene about 30 min of roam coverage with about 15 min of NO SIGNAL WHATSOEVER.i know because i was streaming pandora the whole way then all of a sudden my music stopped WTF VERIZON!!!!MY AT&T DIDNT lose signal once.but then again i do not use a garbage i-phone and never will mostly because they cant even get the reception right so without that it really does not matter what a phone does when it cant get a signal half of the time.BTYmy verizon phone is a droid 2 and my at&t is a nokia n95-3 i bought in may 2007 and still use faithfully.sprint is going down and i cant wait because my girl has sprint and HATES IT!!!IT IS ALMOST COMPLETELY USELESS FOR VOICE CALLS AND LO AND BEHOLD ALMOST EVERY TIME SHE CALLS HER CRAPPY MOTO ANDROID PHONE LOSES SIGNAL AND IF YOU EVEN GO NEAR ANY BUILDING WITH A SPRINT POS PHONE THAT IS MADE OF CONCRETE OR IN IT FOR THAT MATTER IT IS USELESS UNLESS YOU ARE LITERALLY HANGING THE DEVICE OUT THE WINDOW.NOT TO MENTION REALLY SICK OF HEARING SPRINT BRAG ABOUT HOW THAT NETWORK IS SO MUCH BETTER THAN EVERYONE ELSE'S NETWORK.been promising everybody for last 10+years about future improvements in coverage have yet to see any at all!!!!!

posted on 06 Sep 2011, 20:23 1

30. Alex AT&T (unregistered)

You would think Sprint is paying this stupid people. Sprint with better service then AT&T? What are you smoking? Because it must be good. I have and iPhone never once have I have a problem with AT&T's service. I don't agree with the merger sprint is just a cry baby.

posted on 06 Sep 2011, 23:47

39. atrix 4g (unregistered)

you people stop complaning, you keep talking about losing competion. But one day in the near future the father company of tmobile is just going to say the heck, and take tmobile usa out of business, which will be worse for competiton and for customers because one day they have service the next, nothing. ATT already ofered to sell 25% of tmobile once they get it. Now the nex carrier in line buys that and competition sky rockets.

posted on 07 Sep 2011, 00:07 3

40. Dee808 (Posts: 7; Member since: 06 Sep 2011)

Why does everyone think that this is about providing for the costumers. These are big companies only looking to some how make more money. AT&T taking over TM is only a way of getting more cell towers with out building any. All they have said is correct, places where TM towers have good coverage would at that point give better coverage to AT&T customers. With TM having fewer customers the systems are not bogged down and that would give more space for AT&T to handle the data hungry smart phones. By using all resources available it would be easy to deploy LTE nation wide. No carrier can get anymore spectrum, the only way is to buy up smaller carriers and take over theirs. AT&T and VZM have become the biggest providers by buying up regional providers. AT&T's biggest boost came from the iPhone. Sprint may lose customers if the merger goes through, then in return have less cash to invest in future expansion like LTE. Coverags is different depending on many factors, all 4 major carriers have good spots and bad spots. With Sprint struggling to expand its coverage and keep customer,s the merger would give AT&T an advantage in both areas. TM will most likely shut down by the end off 2012. Its just a matter of being bought by AT&T or being sold off in parts. The parent company doesn't want to stay in the US. Thats it.

posted on 07 Sep 2011, 00:36

41. snowgator (Posts: 3558; Member since: 19 Jan 2011)

The merger really boils down to just a few questions, and it is up to AT&T to answer them. Sprint's lawsuit will do nothing to stop this. The FCC has got the final decision, and if they say yes, Sprint better have a plan "B" for post merger, because it will happen. If they say no, it will not be because Sprint sued.

I am not worried about competitiveness- Verizon and Sprint are both large enough to knock AT&T-Mobile out of first place over time. Lets not forget how long it will take AT&T to get the logistics and the tech all lined out. Could be well over a year to two years from when it get's approved. That is a good stretch of time for Big Red and the Now Network to cut off some customers.

I just will miss the 4 horse race, as it drives a lot of good devices and provides for a choice in plans. But let's not forget the elephant in the room: If not AT&T - what happens to T-Mobile??? Like Dee808 said- D.T. wants out. No one else is in a position to purchase and run T-Mobile. Whose to say the just won't cut bait and close shop up on T-Mo if this fails?

posted on 07 Sep 2011, 01:03

43. Dee808 (Posts: 7; Member since: 06 Sep 2011)

This is so true Sprint may see new customers so to VZW. As seen with the Sprint Nextel deal alot people didn't like the new price plans or seen how the coverage changed with the new systems. As AT&T takes over the compatible spectrum and uses the other for its new system there may be some defectors leaving for different carriers. Whether its one of the major carriers or regional only time will tell.

posted on 07 Sep 2011, 04:10

45. techaman (unregistered)

how can they say its gonna help with jobs, all the people that work at t mobile will be gone and the stores in the malls and in places where they are next to each other will have to close so how do they explain that.

posted on 07 Sep 2011, 05:30

46. FNugget (unregistered)

"Think of the customers"?
Is that what you were thinking when you were removing texting plan options from us?

posted on 07 Sep 2011, 06:54

48. Mooooo (Posts: 212; Member since: 27 Aug 2011)

This merger should not happen.
We need more competition not less.
Sorry At and Pee

posted on 07 Sep 2011, 16:27

56. TKFox007 (Posts: 303; Member since: 02 Nov 2010)

Oh please, it's been proven that AT&T would rather spend $40 billion to eliminate a competitor rather than spend $5 billion to build infrastructure

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