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AT&T gives U.S. regulators a reason to block Softbank-Sprint deal

By Alan Friedman

Published: Oct 18, 2012, 4:21 PM

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AT&T gives U.S. regulators a reason to block Softbank-Sprint deal

For SprintCEO Dan Hesse, the shoe is on the other foot

When AT&T was trying to buy T-Mobile, one of the loudest opponents of the deal was Sprint. The nation's third largest carrier was happy when AT&T decided to give up on the proposed $39 billion deal. Now that the shoe is on the other foot, and it is Sprint on the receiving end of a $20.1 billion bid from Japan's Softbank, it is none other than AT&T making comments about Softbank's 70% purchase of Sprint with a rather loaded three sentence statement. Payback? Revenge?

While AT&T isn't coming right out and saying it objects, the statement is basically a blueprint for the regulatory agencies, giving them a huge reason to block the acquisition. In the statement, AT&T discusses how Softbank, a foreign company, would own more spectrum than any U.S. carrier once the deal closes. AT&T says that it expects that fact to lead to a thorough examination by the agencies. Both U.S. and Japanese telecom regulators will have to sign off on the deal and it will be interesting to see if the DOJ and the FCC play just as hard with Sprint as they did with the proposed purchase of T-Mobile by AT&T. And don't forget, there is also the T-Mobile/MetroPCS reverse merger that will still need approval from the Feds.

"Softbank’s acquisition of Sprint and the control it gains over Clearwire will give one of Japan’s largest wireless companies control of significantly more U.S. wireless spectrum than any other company. We expect that fact and others will be fully explored in the regulatory review process. This is one more example of a very dynamic and competitive U.S. wireless marketplace, which is an important fact for U.S. regulators to recognize." – Brad Burns, AT&T vice president

source: SlashGear

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Alan, an ardent smartphone enthusiast and a veteran writer at PhoneArena since 2009, has witnessed and chronicled the transformative years of mobile technology. Owning iconic phones from the original iPhone to the iPhone 15 Pro Max, he has seen smartphones evolve into a global phenomenon. Beyond smartphones, Alan has covered the emergence of tablets, smartwatches, and smart speakers.

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