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Sprint's new press release officially says "Nay" to AT&T bid for T-Mobile

Posted: , by Alan F.

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Sprint's new press release officially says
This might not come as the most surprising bit of news, especially in light of our recent report that Sprint would oppose the AT&T purchase of T-Mobile, but the nation's number three carrier did issue a press release on Tuesday officially voicing the mobile operator's objection to the deal. The $39 billion acquisition would create the largest carrier in the U.S., leapfrogging current number one Verizon.

While hard to accomplish, third party objections have scuttled takeovers before. In the press release, Sprint noted that the deal would require approval of the FCC and the Department of Justice and could spark a round of hearings throughout Congress. The carrier noted that allowing the deal would be opposite to what lawmakers have tried to do over the last few decades in opening up the U.S telecommunications business to competition. There is also the idea that by allowing the acquisition, the government is reversing its attempt of the last 25 years to make Ma Bell a smaller company instead of the monopolistic behemoth it once was.

If the deal is approved, it would create a company with three times the annual revenue of Sprint. According to the press release, "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."

Vonya McCann, Sprint's Senior vice president of governmental affairs, said, "Sprint urges the United States government to block this anti-competitive acquisition. 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."

This battle has just begun.

source: Sprint via Engadget

41 Comments
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posted on 28 Mar 2011, 20:08 4

1. Caleb (unregistered)


You know what Sprint should stay out of this this is between t-mobile and at&t you don't see verizom complaining because they know its not there buisness it is not going to kill sprint that at&t is going to be 3 times larger. SHUT UP SPRINT!!!!!!!!!!!!!!!

posted on 28 Mar 2011, 20:30 8

4. knuckleballer34 (Posts: 119; Member since: 27 Jul 2009)


Sprint has every right to voice their collective opinion on the matter, but I agree with you, it's obvious to everyone that this merger has Sprint on their heels. Verizon isn't saying anything (yet) for three reasons: they're not in danger of being gobbled up by another company, they stand to gain millions of T-Mobile customers who will leave if the merger is approved, and finally, if the merger is approved, Verizon has an arm up on government regulators if it decides to purchase Sprint. Verizon stands to gain from this merger, even if it has to give up its number one subscriber ranking (and some argue it's already #2 in subscribers).

posted on 28 Mar 2011, 22:28 1

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


Incredible is bad for everybody AT&T's purchase, but is not if Sprint buys it......weird isn't it or greedy......!!!!!

posted on 29 Mar 2011, 06:23

28. Jase4g (unregistered)


Dog I Who Hate You Must Say That I Agree...... Its Bad For At&Twig But Good For Spit WTF!!! F*** Spint lol They FIng Suck I Know, I Had Them They Suck In So Many Ways, Dog fyi I Argued With You On Gsm VS Cdma That Should Ring A Bell. P.s. CDMA FTW!!!!

posted on 29 Mar 2011, 11:16 1

30. zuno gyakusatsu (Posts: 257; Member since: 16 Mar 2010)


cool story bro

posted on 28 Mar 2011, 20:36 1

6. Rawrzellers (Posts: 224; Member since: 22 Aug 2010)


U MAD BRO?

posted on 29 Mar 2011, 11:21 2

31. IHatePhones (Posts: 99; Member since: 12 Aug 2009)


To ANYONE who has actually kept up with this news at all. Sprint wanted to buy T-Mobile before this surprise bid by At&t. I believe that is why they are trying to stop this. Simple.

And the people on T-Mobile should be the ones upset by this At&t buyout, as their rates aren't going to go lower...

posted on 28 Mar 2011, 20:22 2

2. ecml (Posts: 129; Member since: 23 Mar 2010)


Sprint will say anything just to get them to reject the deal. But I think Sprint will be fine if the deal gets approved, which I hope it does. But Sprint needs to stay out of this transaction and focus on improving their network. Since their "4G" network needs some improvement in my opinion.

posted on 28 Mar 2011, 20:24 2

3. Zino007 (Posts: 1; Member since: 28 Mar 2011)


I agree and im a sprint customer

posted on 28 Mar 2011, 20:30

5. luis_lopez_351 (Posts: 951; Member since: 18 Nov 2010)


sprint seems jealous x) and WTF isnt AT&T too expensive and not enough DATA for T-Mo customers??? Its obvious they would go to Sprint instead since they have a Unlimited data plan like verizon but less expensive. So why is Sprint trippen???

posted on 28 Mar 2011, 20:37

7. knuckleballer34 (Posts: 119; Member since: 27 Jul 2009)


You bring up good points i've stated all along since news of the merger; Sprint stands to gain customers as a result (Verizon as well). Sprint is concerned about being viewed as a second tier carrier in the face of the two gauntlets. And while Sprint stands to gain customers as a result of the deal, their top executives have to be planning to lose a few million Nextel customers in 2013 when they shut off iDEN. Sprint seems to be stabilizing, but they have a rather stagnant near future.

posted on 29 Mar 2011, 12:39 2

33. CRICKETownz (Posts: 980; Member since: 24 Oct 2009)


Even tho Sprint can gain from this merger what they will lose is the possibility of ever becoming the leading wireless company. Now some argue that this is case now...but to be that far behind the top two if this merger happens it would seal the loss for them. Sprint purchasing would even the plane alittle more as far as subscriber volume between all three. I think that is more Sprint's concern as to not get blown out by the others and possibly face aquisition themselves.

posted on 28 Mar 2011, 20:39 2

8. Wowe1234 (unregistered)


Sprint knows that if the deal goes through that they are going to get about 4-5 million T-mobile customers but they want a piece of T-mobile 26mhz AWS spectrum. Combine that with Sprints 19mhz AWS spectrum and then sprint could start in about a year, an LTE 4G to compete with Verizon's 34mhz of 700 freq. At&t has only 9mhz AWS and 18mhz 700 freq which is also not enough to start an LTE network with speed to compare to Verizon's LTE.

posted on 28 Mar 2011, 20:59

9. Wowe1234 (unregistered)


I want to know if I will be forced on a new plan or if my T-mobile plan will be grandfathered on the At&t network. I have been screwed many years ago by them when they took over another company.

posted on 29 Mar 2011, 02:07 2

22. elandrumiii (Posts: 109; Member since: 20 Mar 2010)


AT&T is plainly said that they will shut down Tmo's 3g/4g network to use it for their LTE network so you can keep your plan but in time you will lose your high speed/broadband data and end up with edge. so they will get you off that tmo plan and onto their metered and capped data that will empty your pocket.

posted on 29 Mar 2011, 11:33

32. IHatePhones (Posts: 99; Member since: 12 Aug 2009)


I'd also imagine that you'd be able to keep your plan, but a (handicapped version as elandrumiii suggested) but if you wanted anything extra or added on, you'd get slammed with the higher rates.

However, I'd also imagine that they couldn't keep you in your current contract legally if the whole landscape changed. It should be easier for you to leave if you were so inclined.

Remember what happened to Cingular customers when At&t bought them? It wasn't pretty, my sister had Cingular and was forced off it due to the service degradation...

posted on 28 Mar 2011, 21:16 2

10. phinner (unregistered)


@ Wowe1234 - AT&T has said it will keep current T-Mo customers on their current plan. But, I would imagine that only would apply until you upgrade your phone. Once you do, that's when AT&T will put the screws to you. They have a way of doing that. I was with them first, through the Cingular phase, and back to AT&T. That was about the time they started nickel and diming us to death. We switched to Sprint and saved 30% for better service.

posted on 28 Mar 2011, 21:35 1

11. verizonempca (unregistered)


I am a Verizon Employee and I can tell you right now that verizon is probably more worried about this than anybody this is all we talk about at meetings how it is going to affect us and how many customers we are gonna lose ETC. The only reason were not out there writing letters and voicing our opinions is because we wanna seem like the better half (cdma wise) and wait till its to late to react to it (just my opinion) cause if this deal goes thru then it opens us up as well. Many people who research verizon know that we have been up for sale for a long time now so we could get bought just as easily.

posted on 29 Mar 2011, 06:36 1

29. Jase4g (unregistered)


Uh I Work For VZW And WTF? I Think I Would Know If I Was To Change Shirts,Up For Sale Ha Yea That'll Be The Day,lol And Sec Scared Who You Probably, Cause Most Of Us Are Laughing Are Butts Off, You Know How Many Customers We'll Get, Hell Yes It Better Go Through..... And Once Lte Is Finished Are Network Will Be Superior Again, Capacity And Coverage, Verizon Wireless It's The Network, The Only Network That Allows You To Rule The Air, Can You Hear Me Now?, Good!

posted on 28 Mar 2011, 21:36 4

12. PhoneUser (Posts: 77; Member since: 11 Dec 2008)


I am having a blast reading all these comments on how Sprint should STFU and mind their own business, to improve their network and blah blah blah.

EVERYONE here knows NOTHING about how this transaction WILL/ WILL NOT affect the mobile competition.

Everything everyone is saying is their own personal opinion and i respect that but if you work/worked in a corporate business you would know EXACTLY why Sprint is apposing this transaction.

I don't know why they are apposing it but i am sure they have their reasons and we need to respect that.

Cause IF you were CEO of a business and something like this could affect you and your customers TRUST me you WILL be fighting the same way Sprint is doing.

posted on 28 Mar 2011, 21:47

13. Wowe1234 (unregistered)


You haven't read my first comment.

posted on 28 Mar 2011, 23:22

17. PhoneUser (Posts: 77; Member since: 11 Dec 2008)


No i read it but my comment was to people that don't know what the hell is going on and all they want to do is bash Sprint......you know the Losers on every forum.

posted on 28 Mar 2011, 23:41 1

18. Wowe1234 (unregistered)


I feel the deal will be good for sprint... I want them to keep doing this so they can get a little extra out of the deal from att for their blessing. Then After the deal. Sprint could bring over customers who still like better deals and don't care about the lack of a sim card.

posted on 29 Mar 2011, 01:43 2

21. PhoneUser (Posts: 77; Member since: 11 Dec 2008)


I TOTALLY agree lol people with Tmobile now are there because of the cheap plans.....i dont see them going to Verizon like some people are saying cause that will just double the plan with Limits on internet........i see most of the going to Sprint or staying with ATT

posted on 30 Mar 2011, 13:53 1

40. tragichero (Posts: 163; Member since: 07 Jan 2011)


what limits on the internet? unlimited data plan doofus! people are going to swarm to verizon as they are now because of their 4g service which is far superior to all other providers. same with the icrap... people are going to swarm for the icrap as well as they are now, especially when the next icrap comes out. then you will see the real exodus of att icrap customers. sprint will get customers from this no doubt. but to say that people will stay with att over going to verizon is retarded. people may want to go to sprint but alot of people are going to come to verizon to be on the best carrier. plus if verizon doesnt buy sprint which i dont think will happen for a while... they will be forced to lower prices for the consumer. this is great news for verizon customers!

posted on 30 Mar 2011, 13:56 2

41. tragichero (Posts: 163; Member since: 07 Jan 2011)


and "double the plan"? what are you talking about. verizon isnt even close to 2x more expensive than t-mobile. not even close! get your facts straight stupid.

posted on 28 Mar 2011, 22:19

14. Anon MBA (unregistered)


It could be posturing as Sprint wants the new Ma-Bell/T-Mobile entity to throw Sprint a BIG bone so Sprint would just shut up and support the new regime.

posted on 28 Mar 2011, 22:24 3

15. trajan53117ad (unregistered)


The big concern here is quite simple. LEARN your history people, look at why the anti-trust laws came about. When businesses get too big for their own good, which is the concern here, they are like a bouncing betty land mine. They pop up, explode, and kill everything around them. Before the anti-trust laws came about, companies like Standard Oil (where the phrase "I'll make you an offer you can't refuse" originated from Mr. Rockefeller) could buy any politician and dictate how the rest of the industry was going to run. There was no competition, so you had to play by THEIR rules and pay THEIR prices. And what are you gonna do? They are the only show in town! Now technology won't stop advancing and things won't come to a crawl. But make no mistake, Dan Hesse is brilliant. An undergrad from Notre Dame, an MBA from Cornell and a Masters in science from MIT means he knows what he's doing. He has a valid point and a valid concern. He knows whats happened in the past and how easily things could turn sour with a merger like this. I could go all day citing instances from the past 100 years to support the challenge, but I urge those who are questioning or concerned to educate themselves on the anti-trust laws. Trust me, you'll understand why there is such an opposition. And you may also be surprised that many of them are AT&T customers that are afraid the company will get too big, own too much, control too many, and the customer will do the suffering.

posted on 29 Mar 2011, 00:21

19. Anon MBA (unregistered)


Dan Hesse may be brillant, but what he is doing still comes across as sour grapes. Yes, I understand the DOJ will automatically challenge an acquisition (or merger) based on market shares using the Herfindahl-Hirschman Index. However, it comes down to what is the definition of the "market."

I really don't know the answers to these questions and I hope others will chime in:
1) Is the market defined as all cell phone users, i.e. those that use Verizon, AT&T, Sprint, T-Mobile, Metro PCS, etc as well as pre-paid customers such as Virgin Mobile, Boost, Net10, Tracfone, etc?
2) Should the market include users of "Facetime" or "Skype" or other alternatives to traditional cell phone service? For example, I don't need a smartphone because I can connect to my friends on Facetime using iPod Touch via free WiFi.

Food for thought.

posted on 29 Mar 2011, 02:19

23. elandrumiii (Posts: 109; Member since: 20 Mar 2010)


the market are the customers who pay for wireless service in some form from said company (AT&T, Verizon, Sprint, T-Mobile) The main focus of competition is primarily based on the top 4, Metro and Cricket are non-contract based and US Cellular is way down there in subscribers and so is the remains of Altell

posted on 29 Mar 2011, 23:41

37. Anon MBA (unregistered)


To say the market is made up of only the Top 4 players is very narrow and disenfranchises the other wireless service providers. For example, under your line of reasoning (before the iPhone), you could have argued "the market" of cell phone manufacturers was simply top 4 cell phone manufacturers. As you know, that definition would be wrong in today's market. I'm pointing out why it's not easy to define the market.

I do think the market has to include access to cell phones as the CEO of Sprint alluded to since the impact of the iPhone demonstrates how this particular phone helped generated millions of new subscribers for AT&T at the detriment of Sprint and T-Mobile and others.

If I had to hazard a guess today, I suspect Sprint will come away with lots of goodies from the AT&T/T-Mobile merger. However, I have no idea what the goodies will be: i.e, additional spectrum, new markets, access to cell phones like the iPhone, etc.

Lastly, here is a corollary -- look at the impact of the Pilots - Flying J merger and see how Love's benefited from that merger. The 4 firm concentration ratio was quite high, which is somewhat similar to the AT&T/T-Mobile merger.

posted on 30 Mar 2011, 08:58

39. snowgator (Posts: 3159; Member since: 19 Jan 2011)


Well said, and a good perspective not brought up yet.

posted on 29 Mar 2011, 00:24

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


Sprint Mad

posted on 29 Mar 2011, 16:12 2

34. downphoenix (Posts: 2232; Member since: 19 Jun 2010)


AT&T knows its the worst carrier so they are just winning customers with dollars. Sprint is right to voice their concerns because AT&Ts actions are monopolistic and anti-competitive. It will lead to higher phone bills. If that's what you want to have, go ahead and back this merger.

posted on 29 Mar 2011, 20:53

35. yo (unregistered)


sprint worse services ever

posted on 29 Mar 2011, 20:57

36. yo (unregistered)


Sprint should stay out of this they merge with nextel and that was ok ? they finish nextel great company .

posted on 30 Mar 2011, 08:57 1

38. snowgator (Posts: 3159; Member since: 19 Jan 2011)


Neither Sprint or Nextel were of the size or economic power of AT&T is already. Almost 90 million subscribers right now, and T-Mobile hovers between 30-40 million in recent years. AT&T also gets major dollars from Satallite TV, home cable access, and is the national leader in what is left of the home phone market (mostly through cable access, I believe. That info was last I checked, but don't know why it would change). AT&T already has huge influences in so many markets that a commanding lead in cell phones sales as well is cause for concern, and I am glad it will not be rubber stamped, but that AT&T will have to prove this is a good move. I do believe Sprint will survive as a seperate carrier, but there is nothing wrong with them opposing this deal. It is a good buissness decision.

posted on 30 Mar 2011, 15:50

42. TheUser (unregistered)


Just so everyone is clear is there really a need for unlimited data plans? The answer is NO.... Isn't that the whole reason smartphones have Wifi? Sure it sounds better but as a former sprint customer now with AT&T I have never went over AT&T's tiered/capped data plan and am paying much less then i was with sprint. So for T-Mobile customers, you should be just fine with AT&T data plans.

posted on 09 Apr 2011, 19:19

43. Dollgrin (Posts: 19; Member since: 21 Nov 2010)


For me I do need the unlimited data. I'm always on the go and use it for work and for personal reason. To be "tethered" or a wifi connection would be terrible for me, I'm rarely in a place where I have access to wifi when I need it. I'm not saying there shouldn't be other options for tiered data, but I don't want to be placed under those limits.

posted on 18 Aug 2011, 01:43

44. sean (unregistered)


Now I know Sprint is not the most amazing wireless company, but I love Sprint I'm quite happy with there network and as a very large share holder of Sprint hold 5,000 shares Sprint will come back they are working on a LTE network. But at the same time they will offer better prices due to the fact that at&t and Verizon do not have a unlimted data and text plan bc there plan comes with extra fees so have fun that I love only spending 91.00 for a plan that has unlimted talk and data and text and that 91.00 is with taxs and fees inb the price. So when the other giants are becomeing greedy Sprint with get some of thee coustomers. But also Sprint does have one secret and its the fact that the govment gave them tons of air space bc the government wanted the air space Sprint first had so they took there old airspace and in return gave them dirt cheep space that they have not taped.

posted on 18 Aug 2011, 02:06

45. sean (unregistered)


I have had Verizon and at&t and bottom line is why will I let them rape me when I can go to Sprint and pay less duhhh no brainer. I have a HTC EVO 4g phone and I have unlimeted data text and talk and there are no extra fees or slowing of connection like t-mobile does let's do the math for an smart phone with unlimited everything and insurance it will cost you 3,248.99 for 2 year contract Verizon 2,763.74 for same services as at&t and Sprint 2 year contract with no extra fees and restriction it cost 1,884.23 umm can u say duhhh one thing is for shore Sprint will continue too offer cheep plans than the giants but at the same time they will also improve there net work at the same time Sprint was the first with 4g and the first and and last wireless company too offer unlimted plans with no hidden fees so Sprint will be just fine. And for other wireless companies they may rape maney but alto of propel will see the better price and swich and the govement will not allow Sprint to dissaper bc they don't want at&
T to be as large as they once were bc at first at&t was the only phone company out there than the govermt broke at&t up into 4 new companys such they are as presant day at&t,Verizon,sprint, and tmobile

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