Forum Views ()
Forum Replies ()
Read more with google mobile :
Sprint files to block AT&T/T-Mobile USA deal
|
Edition:
U.S.
Article
Comments (2)
Follow Reuters
Facebook
Twitter
RSS
YouTube
Read
Air France crash sparks pilot mystery
30 May 2011
Bus crash in Virginia kills four and injures 54
4:20pm EDT
Killer bacteria claims victims in Germany, Sweden
|
3:29pm EDT
NY Rep. Weiner hires lawyer after alleged Twitter hacking
1:06pm EDT
Cheryl Cole out of UK "X Factor" after U.S. hitch
12:47pm EDT
Discussed
75
$1 trillion on the table in U.S. debt talks
59
Judge voids controversial Wisconsin union law
51
Speculation grows over Sarah Palin’s 2012 plans
Watched
Scientists revive ancient spider in stunning 3D detail
Tue, May 24 2011
Massive Australian waterspout caught on film
Mon, May 30 2011
GM pulls the plug
Fri, May 27 2011
Sprint files to block AT&T/T-Mobile USA deal
Tweet
Share this
NEW YORK (Reuters) - Sprint Nextel has formally asked U.S. regulators to block AT&T Inc's proposed $39 billion purchase of T-Mobile USA, saying the deal "has no public interest benefit" and would harm competition.
Sprint -- the most vocal...
Email
Print
Related News
FCC asks AT&T about spectrum claims
Fri, May 27 2011
California may review AT&T/T-Mobile USA deal
Fri, May 27 2011
Google takes wraps off pay-by-phone system
Thu, May 26 2011
UPDATE 4-Google takes wraps off pay-by-phone system
Thu, May 26 2011
Republicans, Democrats skeptical of AT&T deal
Thu, May 26 2011
Analysis & Opinion
Deals wrap: Wanting a bigger voice
Growing investments in Africa: telecom and oil
Related Topics
Technology »
Deals »
Global Deals Data 2011 Q1 »
Inflows Outflows »
Reflections are seen in the window of an AT&T store in New York March 21, 2011.
Credit: Reuters/Brendan McDermid
NEW YORK |
Tue May 31, 2011 3:51pm EDT
NEW YORK (Reuters) - Sprint Nextel has formally asked U.S. regulators to block AT&T Inc's proposed $39 billion purchase of T-Mobile USA, saying the deal "has no public interest benefit" and would harm competition.
Sprint -- the most vocal opponent of the massive deal that would create a new leader in the U.S. wireless market -- said that even if the Federal Communications Commission forced AT&T to divest assets, it would not be enough.
"The proposed transaction would produce no tangible public interest benefits and would impose serious anti-competitive harms that cannot be remedied through divestitures or conditions," Sprint said on Tuesday, the deadline for initial responses to AT&T's application to the FCC.
Sprint, the No. 3 U.S. mobile operator, argued that the deal would raise prices for consumers, and disputed AT&T's argument that it needs T-Mobile USA's spectrum.
Rather than needing more spectrum Sprint said AT&T "simply failed to upgrade or invest sufficiently in its network" and argued that AT&T already has enough spectrum to cover 97 percent of Americans with high-speed wireless services.
Another Sprint argument is that smaller companies would have less power to moderate service pricing after the deal as the two top carriers, AT&T and Verizon Wireless, would then control about 80 percent of the market.
T-Mobile USA is a unit of Deutsche Telekom. Verizon Wireless is a venture of Verizon Communications and Vodafone Group Plc.
(Reporting by Sinead Carew in New York and Diane Bartz in Washington; editing by Matthew Lewis)
Technology
Deals
Global Deals Data 2011 Q1
Inflows Outflows
Related Quotes and News
Company
Price
Related News
Tweet this
Link this
Share this
Digg this
Email
Reprints
We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters.
Comments (2)
DBoo wrote:
AT&T and Verizon = The Most Expensive Wireless Plans in America. We know where Verizon (the 10th leading U.S. lobbyist) and AT&T (the 12th leading U.S. lobbyist) get all that money to run commercials 24×7, pay out huge “fat cat” executive bonuses and hire armies of lawyers and lobbyists to push the U.S. market into a wireless industry duopoly — the American consumer.
Taking into account the whole U.S. market, a combination of Dallas-based AT&T and T-Mobile may raise the Herfindahl- Hirschman Index (HHI), an accepted measure of market concentration, to 3,216 from 2,848, according to a Bloomberg analysis. Any score above 2,500 can indicate a highly concentrated market, and an increase of more than 200 points is “likely to enhance market power,” according to federal guidelines.
If this ridiculous deal goes through, Sprint will be the only low-priced post-paid national wireless carrier left in the United States. T-Mobile customers are already fleeing to Sprint because they know they won’t get low prices from AT&T or Verizon. But AT&T and Verizon are two of the top corporate lobbyists in the country, so I’m sure the Feds are happy to oblige anything they want to do to secure a stranglehold on the market at the expense of the consumer.
- Pricing: Controlling approximately 80 percent of the market would give the Twin Bells significant, unchecked leverage to increase prices for consumers for voice and data.
- Last Mile Access: Control of most of our nation’s vast wireline infrastructure and the critical “last mile” offers the duopolists the ability to raise competitors’ costs, reduce their network quality and quash competitive alternatives.
- Choice: Next-generation smartphone and tablet manufacturers would be discouraged from partnering with any company other than AT&T or Verizon because of their massive scale, limiting choice to consumers and opportunity for manufacturers.
- Innovation: Content and application developers would lack incentive to create content for companies other than the Twin Bells, diminishing innovation and harming developers as well as the capital markets that fund them.
May 31, 2011 4:32pm EDT -- Report as abuse
DBoo wrote:
AT&T’s Money At Work Here …
AT&T lobbyists push for T-Mobile deal
March 28, 2011
For years, AT&T has been one of the biggest political and lobbying forces in town. Last year, it spent $15.3 million and had 93 lobbyists on its roster, including six former lawmakers. Germany’s Deutsche Telekom spent $3 million on lobbying for T-Mobile USA in 2010, armed with 41 lobbyists and one former lawmaker.
Many lawmakers have a personal interest in seeing AT&T do well. AT&T ranked as the sixth most popular investment among members of the House and Senate in 2009, the most recent year for which such data is available, according to the Center for Responsive Politics.
And AT&T is considered a heavy hitter during campaign election cycles. In 2010, donors with links to the company made nearly $4 million in campaign contributions to candidates running for federal office.
May 31, 2011 4:33pm EDT -- Report as abuse
See All Comments »
Add Your Comment
Social Stream (What's this?)
© Copyright 2011 Thomson Reuters
Editorial Editions:
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
United States
Reuters
Contact Us
Advertise With Us
Help
Journalism Handbook
Archive
Site Index
Video Index
Reader Feedback
Mobile
Newsletters
RSS
Podcasts
Widgets
Your View
Analyst Research
Thomson Reuters
Copyright
Disclaimer
Privacy
Professional Products
Professional Products Support
Financial Products
About Thomson Reuters
Careers
Online Products
Acquisitions Monthly
Buyouts
Venture Capital Journal
International Financing Review
Project Finance International
PEhub.com
PE Week
FindLaw
Super Lawyers Attorney Rating Service
Reuters on Facebook
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
Other News on Wednesday, 1 June 2011 Syria's Assad grants amnesty, 5 killed in crackdown
|
Karzai warns NATO not to become occupying force
|
Dutch seaside cell awaits Mladic
|
Israeli military says will stop new Gaza flotilla
|
Tunisian army battles to rescue 700 refugees from boat
|
Army probes Egypt blogger, TV host on abuse claims
|
Exclusive: Yahoo, Alibaba reach agreement over Alipay: sources
|
Sprint files to block AT&T/T-Mobile USA deal
|
WHO says cell phone use possibly carcinogenic
|
Sony to cut TV losses by about 50 percent in 2011/12: report
|
Online network Viadeo eyes Africa after shelving IPO
|
EU to warn foot-dragging states on e-privacy law
|
Cheryl Cole out of UK X Factor after U.S. hitch
|
Hip-hop star Sean Kingston stable after water crash
|
Coachella music festival doubling in 2012
|
Missing mother looms large in Korean novel
|
U.N. report highlights Japan nuclear plant flaws
|
Mladic to face genocide charges within days
|
North Korea says rejects South's secret summits offer
|
Japan PM faces party rebellion; no-confidence vote looms
|
Syria's Assad grants amnesty as 5 killed in crackdown
|
Philippine clan chief sparks gasps as he denies massacre
|
Grenade injures two at Bangkok yellow shirt rally
|
Dutch seaside cell for Mladic
|
Google wanted to team with Facebook, now fierce rival
|
Smart Money: Promise, drama in Yahoo's Asian assets
|
Yahoo, Alibaba reach deal over Alipay: sources
|
Lenovo launches $830 million takeover offer for German firm
|
U.S. arms makers said to be bleeding secrets to cyber foes
|
Lenovo sees PC market share in western Europe rising
|
Shanda Games in acquisition talks with social, mobile
|
Ericsson wins contract worth up to $1.2 billion in Australia
|
Blake Lively nude pictures fake, publicist says
|
Lady Gaga album sells 1.1 million copies in first week
|
Broadway posts larger takings for past season
|
DC relaunching comic book titles at issue No. 1
|
Explosions and street fighting grip Yemen capital
|
Libya's oil chief Ghanem defects, now in Rome
|
Turkish nationalists held in pre-poll tension
|
NATO extends Libya operations to September
|
Japan PM faces party rebellion ahead of confidence vote
|
Egypt's Mubarak, sons to be tried August 3
|
North Sudan proposes rotating Abyei administration
|
About 200 launch cross-border attack on Pakistan post
|
Nokia declines comment on report of Microsoft talks
|
Nokia on the ropes as analysts slash targets
|
Microsoft places restrictions on chipmakers: report
|
Hulu to show Miramax films under multi-year pact
|
North Korea hacker threat grows as cyber unit grows: defector
|
Adele cancels North American dates due to laryngitis
|
A Minute With: Beginners star Ewan McGregor
|
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights