Sprint Formally Files Their Opposition To AT&T/T-Mobile Deal With FCC

Sprint has undoubtedly made their position known on the proposed combination of AT&T and T-Mobile but they have officially submitted their formal request to deny the takeover to the FCC. Sprint came to the conclusion that the “proposed acquisition cannot be remedied through divestitures or conditions,” and urges the FCC to block the transaction. Inside their filing Sprint focused on three main points as to why the proposed merger should be blocked:

  • The proposed T-Mobile takeover would harm the broadband economy, competition and consumers.
  • The proposed T-Mobile takeover would harm innovation and investment.
  • The proposed T-Mobile takeover has no public interest benefit.

While it’s obvious that Sprint has their own strategic interests in mind they make a fairly compelling argument. In this case Sprint may be a competitor but they are also interested in keeping competition alive and we have to agree that this deal has no public benefit interest. For AT&T this deal is business transaction and the idea that they will finally be able to cover rural areas is nice but the reality is it’s simply the way they make the deal sound really good.

This quote from the Sprint press release regarding their filing really sums it all up:

In its filing, Sprint states that the choice is very clear: The proposed transaction must be blocked. The transaction would harm consumers, competition and the American economy as the Twin Bells would not be deterred from increasing prices and reducing consumer choice in wireless devices, applications and services where they control approximately 80 percent of the wireless industry revenue. 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. The Commission should reject the acquisition outright.

Check out the full press release available at Sprint or head on over the FCC and prepare to read 370+ pages.

Sprint

 

     

     

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    • http://www.facebook.com/profile.php?id=1339612527 Adrian Parks

      I have no comment as far as Sprint is concerned, but, I really do think the deal should be blocked, plain and simple.

      I really agree with the three bold statements though. They’re all true. Us, the people, will be hurt because AT&T WILL raise prices. Higher than what they are, while they cut all the services in half.

      • Palmnurse

        I completely agree… AT&T has s***st customer service they are way to expensive, poor reception & they only care about the green… They def do not have the customer best interest at heart…

      • Mangobeach

        I am not a fan of Sprint or AT&T! but that being said, VZW is way overpriced. I hope neither company buys T-mo. I would like to hope that another comapny would step up & buy T-mo.(Just wishful thinking) The only Plus I can see if AT&T is successful, would be that AT&T has some of the Best Cellsite Techs in the industry (Not saying the T-mobile Techs are bad in any way) They built the network T-mo has on the West Coast. So the service side could get a lot better. Its just AT&T has crappy managers who only care about profit, & not service! Both AT&T and Sprint’s customer support suck! they both mess up on Billing, & could not support their way out of a paper bag. Their doesnt seem to be any good options for the customer.

    • http://www.facebook.com/profile.php?id=1339612527 Adrian Parks

      I have no comment as far as Sprint is concerned, but, I really do think the deal should be blocked, plain and simple.

      I really agree with the three bold statements though. They’re all true. Us, the people, will be hurt because AT&T WILL raise prices. Higher than what they are, while they cut all the services in half.

    • http://ashn.myopenid.com/ Ash

      We all know Sprint is not fighting for us, but I’m glad they are fighting.

    • http://www.facebook.com/profile.php?id=100000051537390 Derrick D J Thomason

      :::clapping:::

      s/n, to those who complain about how they want more of this, lacking some of that.  be grateful you even have service, be grateful that TMO made it this far as the inovator for google android, value priced celluar company and that they hire people who LOVE THEIR JOB and LOVE WORKING WITH PEOPLE(customers) to solve issues. 

      when im in the field talking/selling/troubleshooting with customers.  i hear their complaints but they always finish it with, “…despite the lack of coverage, i’d rather continue pay 25%-50% less, working with people who really care about their customers and a company that i know will continue to grow…”

    • Anonymous

      Sprint is *SUCK!*, too…

      • Techguy

        hahahaha….hilarious. :)

      • Mopar6464

        lmao

    • Goukisan

      desperate act for a desperate company

    • CMK

      I would think Sprint would love to see AT&T buy TMobile.  Think of how many TMob customers would bolt to Sprint. :)

    • Goukisan

      Do people understand that IF this deal does not happen TMO will end up crippled and broken in the long run? TMO didnt do this just out of the blue. They knew they were bleeding customers and had to do something to make a profit in this country. Either way we were going to lose TMO.

      • http://www.facebook.com/profile.php?id=1339612527 Adrian Parks

        We all know but its better than being bought out by AT&T.

      • CMK

        You make a good point.  Unfortunately I think we’re f-ed no matter what.  DT wants to rid itself of TMO; that’s obvious.

        • Mbregar13

          How is it obvious that DT wants to rid itself of TMO-US? The only thing that is ‘obvious’ is that they are selling something they own, for twice its estimated value. Smart business move — does not mean they want out.

          • Anonymous

            Because DT already made it clear that want to go back to operating only in their home country and have no desire to continue business in the US or other outside markets.

          • Dewey Cox

            They have wanted to purge TMO USA for years. AT&T just happened to offer the most cash for it. DT does not understand how to compete in the US. Dotson missed tons of opportunities to grow and expand. Marketing, weak network and (until now) crappy phone selection have done this company in. It’s sad but If AT&T sale gets blocked, its a matter of time before another suitor comes along. The money for a failed goes to TMO US, not DT.

      • Going_home

        They will get 3 billion from AT&T plus a lot of spectrum (which they need for their LTE rollout).
        Everything will work out fine.
        The death star will go home empty.

        :-D

        • Mopar6464

          Please share your drugs.
          T-Mobile can’t even rollout full coverage 3G much less invest in LTE.
          DT will take that 3 billion and still sell off or break up T-Mobile USA , they want out.
          Time to wake up and smell the coffee.

      • http://www.facebook.com/profile.php?id=26303408 Rob Euro

        IF this deal goes through, it will not be positive for ANYONE other than VZW and ATT. Even if TMO just ended up bankrupt, it would still benefit EVERYONE more than this merger. So I’m clear, if TMO USA just went belly up, carriers WILL offer great deals for lost TMO customers (i.e. when that prepaid carrier went under in 2007, VZW offered their cust great deals to sign up. I know this because I worked for VZW at the time). ATT  has NEVER done anything in the interest of their customers, so why would anyone believe that now will.

    • http://www.facebook.com/risket Chris Payne

      I would really love to see this merge blocked as well!

      • None

        Sale, not merge.

    • Anonymous

      DT wanted to get rid of T-Mo USA because of poor performance, not great CS. Sadly if T-Mo doesn’t get bought up it may go down. We don’t want at&t to buy them and Sprint barely has the money to keep themselves afloat while staying competitive. Verizon has zero need for them. A regional may be interested in a partnership. 

      No matter how this end, this is the death of T-Mobile as a groundbreaking value leader among national carriers.

      • BigMixxx

        T mobile has yet to fail on it’s on.  The word is ‘on it’s own’.  Sprint was a pubic hair from going under if it did not reposition a lot of it’s debt.  Sprint is really gaining a lot of customers yet loosing a ton of money, but it’s operating margins are pretty stable.  T mobile’s operating margins are actually wonderful, however crappy the overall loses are. 

        Overall it is now very, very strange world.  The DOJ may just block it, simply because ATT told a bad story and will not straight shoot with the Government.  Meanwhile, T mobile is releasing great devices and I cannot get into the Store.  If Las Vegas is any indication of the rest of the country, T mobile business is good….

    • http://www.facebook.com/people/Lucas-LeCompte/47912789 Lucas LeCompte

      well negative nancys, what if another company stepped in and bought tmobile on the cheap if the deal gets blocked?  Im sure someone out there could turn the company around.  You guys act like T-mobile is sure horrible and has nothing going for it.  What if US cellar bought tmobile, or google, or even T-boone pickens bought Tmo?  

      • Anonymous

        Another company can come in and buy tmo, but can they make them better? Would this company be willing to invest tons of money to improve tmobile?

        • Mopar6464

          And i’ll bet they won’t keep the cheap rate plans if they do. It will cost a lot of money to turn T-Mobile around and really be competitive so someones going to have to pony up for it. And guess who , the customers.
          So if someone else did buy T-Mobile USA , i don’t think it will be anything like it has been and to expand full 3G or upgrade to 4G LTE coverage to compete with Verizon and AT&T it will have to be a Real change and a lot of CASH.

    • Anonymous

      Interesting u don’t see vzw coming out opposing the buyout. The buyout should be allowed to pass with restrictions. DT wants out of the US, let them. I don’t want reluctant owners running TMO. They failed to guide their US division to success while they enjoy much success in Europe.

      • Mbregar13

        Who said they ‘want out of the US’? All I see is a branch of a company being sold for nearly twice its value… any smart exec would have pulled the trigger. 

        • Anonymous

          If tmo usa was successful, DT wouldn’t be looking to get rid of it…DT wants out of the US market bc tmo usa isn’t successsful.  I agree with u that DT is making a wise business decision here by selling to ATT for way more than what tmo’s worth

      • Addictedtocars

        VZ I think is staying quiet so they can gobble up small players and maybe sprint if govt let’s att get tmo.

    • Jamie Sigaran

      R.I.P T-mobile

    • TMoFan

      Let DT sell out to someone else or just let T-Mobile become a public company. They can’t have it both ways selling out for mega bucks to a mega company and unloading T-Mobile. Sure it’s a win-win for both at&t and DT but everyone else is screwed. Despite T-Mobile being in fourth place they are a national carrier. Selling out to at&t would have a devastating impact on the industry in the long term. Nothing in the form of divestitures will make this any better.

      I’m glad Sprint is against this even though they could care less about us and T-Mobile and more about their survival. This sellout also opens the door to a Verizon takeover of Sprint in the future. All the top two seem to care about is topping each other to being #1.

      In the end though I’d like to see DT not get their way on this one. They are the reason T-Mobile has been floundering. The thought of them selling out us loyal customers and T-Mobile employes for all this money and the potential to make more with their stake in at&t is sickening.

    • Anonymous

      Sprint did a great job explaining their view on this proposed buy out. Sure hope someone is listening. There is no reason T-Mobile with the proper advertising behind them can not turn this great product into the third place carrier. They have a very fast data speeds, great plans and customer service. Just hoping this carrier can turn it around. Been with all the carriers and by far T-Mobile has supplied me with the best service. 

      • Anonymous

        @vinnyj:disqus Sorry to be a downer but here’s last quarter.  With no affect from merger.
        “net postpaid subscriber additions of 310,000 for the Sprint brand. Sprint achieved best ever postpaid churn of 1.81 percent and the lowest prepaid churn of 4.36 percent in over five years.”

        “T-Mobile reported their first quarter 2011 results this morning ending up with a net customer loss of 99,000 in the first quarter compared to 77,000 in the first quarter of 2010.”

        I don’t like hoop dreams.  T-Mobile will be lucky to SURVIVE let alone take 3rd place if they don’t turn it around like you said.  

        • Anonymous

          Ok listen I know that numbers up in the tens of thousand sound big to you but that’s hardly a dent when you’re dealing with tens of millions of customers. If T-Mo was sinking so fast then how did they only net loss 99,000? You do realize that means that not only (according to what I recall from the financial report) did half a millionish leave but 99,000 less than what left also signed on! That means that a decent number of people are still interested in having T-Mo as their service provider. Take into account the other 30 something million people and how the hell are they not surviving?

          • Anonymous

            For one I didn’t say TMO is not surviving, I said they will be lucky to.  As in in the not so distant future after the merger fails.  Obviously they are still profitable today.

            Secondly, If your idea of a successful company is to be Losing more and more customers then good luck with that.  At this rate TMO will eventually go under unless DT backs them up.   “99,000 less than what left also signed on! That means that a decent number of people are still interested in having T-Mo as their service provider.” no S–T?  It’s not like everybody is just gonna suddenly stop coming to T-Mobile but that’s still a loss and not a gain like the big 3 are doing.It amazes me that we started Android and have such a deep selection of Androids but T-Mobile is losing more and more subscribers.  

    • Julio Feliciano

      Well you already see at&t’s touch on tmo. Tmo got rid of unlimited data. All they have is unlimited talk n text. *Plan price includes $60 unlimited data. Unlimited high-speed data access (10 GB at up to 4G speeds on capable devices). If you use up your 10 GB of high-speed data, we will automatically reduce your speeds for the rest of your billing cycle. That means you will never have to worry about data overages.

      • http://ashn.myopenid.com/ Ash

        Better than $10/GB after you fit your cap, no?

      • Anonymous

        There’s been a cap for YEARS before the merger announcement.  It used to be 10GB and then down to 5GB and its STILL 5GB for the same price it was a YEAR ago.  Now we have a lower option which is far superior to ATT’s 2GB option.  

        2GB with no extra cost for ANY additional MB’s/GB’s you might squeeze out slower vs. 2GB that hits a wall and like @openid-34085:disqus said costs you $10 for a single MB over your allotted amount.

        Also, (and more importantly) 2GB for $20 vs. 2GB for $25.  Now, as @4521c7e92414d0650668e67385e7b780:disqus says, who’s “Winning”.

    • Guest

      Sprint wants tmobile

      • BigMixxx

        Nope, Sprint can’t afford T mobile.  Too much debt to handle and a deal would not be structured properly….

      • BigMixxx

        Nope, Sprint can’t afford T mobile.  Too much debt to handle and a deal would not be structured properly….

      • Mopar6464

        Sprint can’t finance a bag of tampons right now much less buy T-Mobile with a totally different technology (GSM).

    • Bebe12

      @Julio there still is unlimited data. Because I have unlimited everything

    • TypicalWhitePerson

      I don’t care what happens anymore. As I long as there’s iPhone, I’m good.

      • Addictedtocars

        Sure don’t care and that iPhone 5 will require a $50 month capped and throttled data plan. Not to mention the cost of the phone will likely go up!

        • Mopar6464

          Not if Apple releases the i5 on all carriers and you then buy it on T-Mobile just before the Buy-Out gets approved locking in your Grandfathered T-Mobile Plan at half the AT&T plan would cost in which AT&T will have to honor until it expires in 2 years.

          • None

            You do realize there is no promise from AT&T about “grandfathering” right.  While prob correct, that is pure speculation.

          • Mopar6464

            AT&T Does have to honor your T-Mobile cell plan at the time the Buy-Out is complete until it expires.
            Then AT&T can demand you sign their contracts or you can leave.
            AT&T cannot alter your T-Mobile plan they assume from the Buy-Out without releasing you from the contract with no ETF if they do.
            So No , they don’t have to promise to honor your contract but if they choose Not To , they give you the option to leave with no strings attached.

          • None

            Not true.  TMO can cancel your contract any time they want.  Read the contract.  It is right in there that they reserve the right to cancel your contract.

          • Mopar6464

            But it’s not T-Mobile anymore once AT&T buys out T-Mobile and assumes all T-Mobile customers plans until they expire.
            It’s just like mortgage companies. When you buy a house you pay the mortgage company the monthly bill until it gets payed off. During that 30 year loan time you will have other mortgage companies buy-out your original mortgage loan but your 30 year fixed rate and payment must stay the same. It’s the federal law , they can’t change it because the new mortgage company assumed your original loan.
            The same will happen when AT&T assumes T-Mobiles customers in the Buy-Out if it’s approved by the FCC.  If AT&T alters or does’nt uphold your original T-Mobile rate plan , they must release you under that contract with no ETF or strings attached.

        • Anonymous

          capped and throttled is better than mountains of overage charges on top of your already expensive as hell rate plans. Seriously you get so much more for LESS on T-Mo.

        • TypicalWhitePerson

          I’m not on contract and I buy my devices from either craigslist, or eBay. Never retail price at the store. I’ve bought the iPhone 3GS and iPhone 4 brand new in box, unlocked,  for $280 and $400 respectively. I’m pretty sure when the iPhone 5 drops, I will get the 32gb model brand new in box, unlocked with no contract for up to the same price. I always find the best deals lol.

      • Nis

        Your
        comment doesn’t make sense.  You say you don’t care just as long as you can have
        your iPhone (as if you’re planning on buying retail) yet you
        say later that you ALWAYS buy your iPhones
        outside retail.  You’re confusing.  And by the
        way, you do care.  Otherwise you should have move over to ATT long ago.  The
        fact that you haven’t done so already tells me you either enjoy the lower TMO
        prices or you enjoy the EDGE network for some insane reason.  Either way, you do
        care.

    • Anonymous

      I love T-Mobile, but who actually thinks a few B’s in the bank (DT’s bank over in Germany somewhere) will actually give this company what it needs to stop this downward spiral???  This IS a business and they do fail.

      To me it’s just a matter of time but I’ll still enjoy T-Mobile till they are gone.

      Flame Shield up!

      • Sallymc

        This has been said many times.  AT&T and Verizon are NOT as big as the big world companies.  There are many, many companies from Europe who could come in and run TMobile USA better than the german did. IT is a fully functional, built out, national network.
        Check out: Orange Mobile, O2 mobile, Rogers.  Vodafone of the UK pretty much owns Verizon right now.  I don’t see why Orange mobile can’t come in and allow the USA to keep four competitive cell companies.

        • None

          That would be awesome!

      • None

        “Stay thirsty my friend” — What ever happened to that guy?!?!

    • justbeingreal

      Let us all be honest with each other..AT&T is the second largest contributor to political campaigns.  It doesn’t matter whether you are liberal or conservative, AT&T supports them all.  The deal will go through.  This is the United States of America, money talks…everything else walks.  

      • None

        For reals?

    • Anonymous

      way to go Sprint…anything I can do to help drag this longer? lol…
      i like t-mobile and i know something needs to be done to help us – anything (hopefully some other company somewhere and not any of the major US carriers). but until it happens…happy dragging…

    • http://www.facebook.com/WiiRobby Robert Snyder

      Called this is just sprint going boo hoo hoo we wanted to be the ones that destroyed Tmobile not ATT its not fair.

    • http://pulse.yahoo.com/_V3A4YNL7QCQJW2TXWTGEDD7JFA alphonso

      I for one am for the merger and here’s why.
      I pay way too little at Tmobile and I need att to take more of my money. Making my wallet lighter.When I walk into a T-mobile store there want me to look at andordroid and there just to nice. But when I go into a att place they shove a iphony down my throat and kick me out the store. Just the way I like it. I want dropped calls. So I’ll miss my nagging wife calling me.When I call tmobile customer service. There just too helpful. I want att’s customer service to belittle and berate me then call me a idiot and hang up on me. Now that’s serviceIt’s people like me that SHOULD not file!!!Signed Moron j Stupid

    • http://cafeland.vn bat dong san

      i completely agree..

    • Anonymous

      Just remember folks, its not a “merger”. I don’t know why I keep seeing this word. ATT is simply purchasing an asset. In no way will T-Mobile USA be around. They are not coming together for the greater good. DT wants out of America and is getting handsomely rewarded for doing so.
      It is an acquisiton, a takeover, the beginning of an end.

    • Doodlius

      Sprint could have the most cogent, articulate, legally correct argument ever put before a governing body and they’d have exactly zero chance to stop the AT&T takeover – they’re fighting against some veeeeery deep pockets, and everyone knows the Golden Rule: he who has the gold makes the rules.

    • Bobsmith

      Why is Sprint having a problem w/ this merger, they were in talks w/ TMobile to do the same. I assume they are just pissed that AT&T got it instead of them.

      • http://tmonews.com David

        Have you read the actual articles, they should make it very clear why Sprint is concerned.

    • Jim

      What, if anything, is stopping AT&T from covering rural areas now?

    • http://www.gazzmic.com Barry Donegan

      I wonder how much of the problem of potential monopoly really rests in all of those local and state government sweetheart deals with specific providers. Everywhere I have ever lived has always had a particular company with which special infrastructural deals are made that make competition pretty impractical. The merger will doubtlessly strengthen those two versus other competitors and we should want to see a diverse and competitive marketplace, but the real problem persists regardless and may be the result of a deeper flaw in the general way that governments interact with service providers of broadcast technology.