AT&T bites back at Sprint’s attempt to block merger

Legal

Sprint announced that it was suing AT&T in an effort to block its proposed acquisition of T-Mobile USA on Tuesday morning. Later in the day AT&T issued the following statement in response to the suit:

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.

On August 31st, the Department of Justice filed a related lawsuit in an attempt to block the merger. On the same day, AT&T responded to the DOJ suit and said that its proposed acquisition of T-Mobile USA is in the best interest of consumers and “the facts will prevail in court.”

54 Comments
  • http://twitter.com/GRZLA Grizzly Atoms

    If anyone needs to help their customers its AT&T. Their coverage is laughable, they just hiked up their texting plans which makes 0 sense, and they were also awarded worst carrier in terms of customer service.

    AT&T is the herpes of the wireless spectrum.

    • Jose Hernandez

      hahahahahahahahahahaha @herpes At&t is a very sheisty corporation anybody disagrees with me are just as stupid as they are…..

      • Rob

        Clearly demonstrates the challenges of our nations education system.

      • Anonymous

        ,.,wow,, I just got a $829.99 iPad2 for only $103.37 and my mom got a $1499.99 HDTV for only $251.92, they are both coming with USPS tomorrow. I would be an idiot to ever pay full retail prîces at places like Walmart or Bestbuy. I sold a 37″ HDTV to my boss for $600 that I only paid $78.24 for.
        I use EgoWîn.com

      • Justin

        …wow…YOU SHOULD KILL YOURSELF.

      • Anonymous

        Wow, you and your mom just got ripped off by paying money to hopelessly bid against a computer bot that drives up bids against stupid people thinking they can get something for nothing???!!!

    • rradina

      You say it makes zero sense.  From AT&T’s POV, it makes a lot of cents!

  • fishkid13

    Time to give up and get out AT&T.

  • http://canyonr.com CanyonR

    “promoting competition”
    You keep using these words, I do not think they mean what you think they mean.

    • Anonymous

      “Inconceivable!”
      “I don’t think that word means what you think it means.”

  • http://claimid.com/155/ 155

    Keep up the Doublespeak AT&T

    PS  Nobody believes you.

  • Drew

    Wow, this is a classic case of STFU at&t!! Why do you feel you must comment on EVERYTHING?? Where were you when someone should’ve concerned themselves with making sure I got my fucking U-Verse router and not my neighbor who already has it because your incompetent asses can’t read OR listen. How about you concern yourself a little more with customer service and customer satisfaction instead of lobbing retort after retort because YOU don’t agree with what somebody says about you. While you’re at it, STFU and fix my ridiculous 1.5Mbps upload speeds on a Fiber Optic line. Nonsense!!!

  • tc

    In this case, Sprint’s best interests are the American public’s best interests.

    I think BGR should ask for an interview with someone at AT&T to call them out onto the rug about their claims.  Such as this allowing them to roll out to 97% of the public (which they can and will do regardless of this acquisition).  And also how this is any different than the cingular acquisition in which they made similar promises and followed through on nothing.  And as everyone else has pointed out, how consolidating the market promotes competition.  It’s the very antithesis of competition.

    • Anonymous

      Agreed, its quality over quantity always, but this aquisition removes BOTH quantity and quality from an otherwise small (number-wise) and uncompetitive market.

  • Anonymous

    GO AT&T KICK SOME ASS. 

    • Anonymous

      Do you think that your loyalty to AT&T will be rewarded? Well I got some news for you…it won’t!

  • Peter Goesinya

    Dan Hesse is climbin in your window, snatchin’ yo aquisitions up.

    • Southpaw

      lol

  • Anonymous

    At&t you are a joke. This merger will destroy competition and innovation. The only thing that will improve is your pockets getting fatter because you will continue to raise prices. This merger hurts us, the consumer. Plain and simple. I applaud sprint on their firm stance.

  • Google

    If this merger does Backfire… ;) Google Will probably buy T-Mobile … but I have AT&T and Within buildings they have the best signal… sorry ppl =]

    • Anonymous

      As I’ve said to others, I am on Sprint and couldn’t be happier. The wife and I switched over from AT&T a few years ago and it was the best decision hindsight be 20/20 and all. I can’t comment on T-mobile and Verizon as carriers but if their customer service is like AT&T well, I feel sad….Sprint may not have the
      best selection of phones, but Hesse is trying to change all that, and he’s already changed their customer service which is the best IMO.

      • Anonymous

        Verizon has the best coverage, though they are better than tmo and att at customer service

      • Anonymous

        Well, that’s what their marketing department says.

      • rradina

        Sprint is supposed to get the iPhone 5.

  • http://about.me/brandonmccall brandonmccall

    AT&T is full of s—.

  • MarkO11809

    Just more continuing lies from ATT… I wish they would just stfu

    • Google

      Why stfu if sprint just filed a suet lol

  • Anonymous

    That’s right, AT&T. The key to fixing all the world’s problems is you expanding your 4G network.

  • Anonymous

    “Sprint is more interested in protecting itself…” Which essentially means that they acknowledge that the merger would hurt Sprint. And if you want to widen you assumptions, that it would also hurt other smaller carriers.

    • http://www.twitter.com/wixostrix WixosTrix

      I have yet to see anyone say it would hurt smaller carriers, but I have thought about it.  Why do you think it would hurt them?  I thought it would actually help them because I’m sure many people would deflect on to like Boost Mobile and Metro PCS (where I live) because those services are actually getting better, while still staying cheap.  They’re still gonna be there whether T-Mo remains in existence or not.

      • Anonymous

        It would hurt the smaller carriers in the long run since they essentially resell the services provide by other carriers. If T-Moble and AT&T merged then AT&T would have full control of the GSM Market in America and can place any price on these smaller carriers that resell their service. It would force the smaller carriers to raise their price. With AT&T and T-Mobile separate, they would be able to continue to complete against each other in the GSM resale space.

      • http://www.twitter.com/wixostrix WixosTrix

        Good point.  But aren’t most companies are moving to LTE: AT&T, Verizon, Metro PCS, there was even an article I saw about Sprint’s possible move to it away from WiMax.  So will the market even remain viable?  But I guess the now GSM carriers would still need it in the future to fall back on where their 4G isn’t available and AT&T would own most of spectrum. 

        But then again, if no one else tries to purchase T-Mo after AT&T then they would eventually go bankrupt, then all those jobs would be lost.  Mergers do come with job loss, you don’t need two CEOs, but a lot of the workforce remains as long as the purchasing company remains profitable.  AT&T won’t suddenly be able to stop trying to sell new phones and services.  At the end of the day, AT&T needs it’s customers so I doubt we would see a price hike that wasn’t going to happen eventually.  I don’t get why everyone thinks this acquisition will just be the nail in the coffin for the wireless industry.  It will certainly stir things up, but every industry has those times.  The companies need to adapt and the governments involvement needs to be just to make sure the practices the companies use aren’t anti-competitive. 

      • Anonymous

        I cant seem to reply to your comment like you would expect, The LTE Market is still in its infancy so its hard to speculate how that will work. However I could assume that the smaller carriers are locked to the provider they are signed up with and that their phones by the cellular technologies they use would restrict them from hopping to a different type of carrier like Verison. Mergers are bad as it will reduce competition there is no way to dispute that. The NFL wouldn’t be popular with 4  teams, the more teams the more games. We have four major carriers and reducing them to 3 would make them less inclined to innovate or invest in improving their network. I’m about to get busy so I can’t complete my response right now.

  • Anonymous

    Well duh…of course Sprint is interested in protecting itself. What company isn’t? Did the tyrants at AT&T expect them to just roll over and let themselves be eliminated?

  • Spencer7353

     What a brilliant defense by AT&T……. Sprint is trying to block the sale to protect themselves. No Shit Sherlock!!! Of course they are just like you are and every corporation is. How does eliminating competition benefit consumers in the long run as you suggest, AT&T? If you were looking out for customers, AT&T, you wouldn’t be ranked last in customer service and you would have a cell service that actually works. What a joke!

    • Danhesseisabitch

      You just made AT&T’s point you idiot. Sprint doesn’t have the right to sue over the merger. So they are using this bull shit that the merger will affect consumers and corporate customers by higher prices. Look the deal will go thru. Especially when Sprint starts selling the iPhone. Sprint won’t be able to cry about not being able to sell the best phones. also sprint is screwing themselves b/c if this merger doesn’t go thru they won’t be able to buyout clearwire and take over their spectrum. cuz they will not be able to justify owning all that spectrum without it harming competition and trust me they will need all that spectrum when they start selling the iPhone.

      • Stoopered

        You’re an uneducated idiot. I do not know how to repond to you. I hope your post was a satire, otherwise youre the reason America ranks low in education. Sprint buying Clearwire would be a Vertical Merger, with benefitial holdings. Since you will not understand what that means I will give you a recent example. When Google purchased Motorola Mobility, Google was not buying a direct competitor. Motorola makes hardware for mobile devices and Google offers software. So it is a Vertical Merger. The case would be the same with Sprint buying Clearwire. The spectrum would benefit Sprint, just like the patents will with Google. Clearwire does not compete with At&t and Verizon in the Mobile business. Also if you look at the market share (if you know what that means) you will see that T-Mo and At&t merger will make Sprint by far the smallest of the carriers, and not earn enough profit to compete with At&t and Verizon. The At&t and T-Mo is a horizontal merger and would create a duopoly. Heres the market share breakdown after the merger At&t+T-Mo= 44% (85% holding on GSM), Verizon=39% and Sprint=16%. Its Anti-Competitive anyway you look at it. Sprint could not compete, and therefore would be eliminated creating a duopoly. I would remove your post to save yourself from embarrassment.

      • Danhesseisabitch

        You think your so smart yet your a fuckin idiot. I kind of feel sorry for people like you who think they know it all yet you dont know shit. Clearwire is a direct competitor, they may not be a large competitor but they are a competitor. They have 6.15 million subscribers which consists of 1.29 million retail subscribers and 4.86 million wholesale subscribers. Saying that a sprint buying clearwire is a vertical merger is like saying that nokia buying pantech is a vertical merger. If att/tmobile gets blocked so will sprint buying clearwire The spectrum holding of sprint/clearwire merger would give them way too much of an advantage. These are the current spectrum holding by carrier in the topp 100 markets: Clearwire 150 mhz, verizon 88 mhz, at&t 84 mhz, sprint 69 mhz and tmobile 51 mhz. A sprint/clearwire merger would give them about the same amount of spectrum as verizon, att and tmobile combined. This would allow sprint to continue to offer unlimited data plans without worrying about network congestion unlike the other carriers. Look you have to let the market speak for itself. Regardless of the outcome of the att/tmobile merger, sprint will coninue to lose customers and lose money. The market has spoken and people prefer at&t and verizon. tmobile and sprint have been the low cost carriers for the past couple of years and they are still losing subs and money. Neither one of the companies are going to last much longer. How many companies do you know of that can lose money year after year without going under. im sorry bro but you can be up sprints ass all you want and you can cry about prices going up but the bottom line is that att and verizon will continue to dominate and sprint will be around for a couple more years and will then prob go bankrupt. sprint investors better get out now while they can still make some money cuz once they go bk they will get nothing. SPRINT SUCKS. DAN HESSE IS A CRY BABY BITCH. PEOPLE WHO COMPLAIN ABOUT THE MERGER ARE A BUNCH OF BITCHES.

      • Anonymous

        @weirdfetishwithdabhessehater, who used to be the CEO of at&t. You’re still wrong. Yes the spectrum holdings are in Sprints favor it still does not justify how this merger will not create a duopoly. Clearwore holds a very large specrum, unfortunately a majority is not of the very useful frequency. I.e 2.5 ghz. At&t does not efficiently use their current holdings and have enough 700mhz to cover the major markets with LTE. I blame At&t’s stupidity for not purchasing the additional spectrum they were going to need during the last spectrum auction. Sprint already has a 54% stake in clearwire and can use the spectrum as they please. Again you failed to see the market share. You keep saying Sprint will fail, but the company is turning around and will be earning instead of churning. T_mobile has the opportunity to turn their fortunes around if this falls through. Wasn’t the Cingular aquisition supposed to give us a better network and more jobs and options? Also I thought that it would improve the customer service. That was a lie. I hate calling at&t customer service.

  • Vlad Pop

    If so many don’t like and hate AT&T and love T-Mobile and Sprint, how come more people are on AT&T then the other 2 ? If you don’t like them, just move on to someone else… that is how you show them, that is competition. Is not like you have to be with them.

    • Anonymous

      I could personally care less about this whole thing. I just find AT&T’s arrogance amusing.

  • JD

    How does getting rid of a lower cost national carrier benefit the consumer? That is the most a$$ backward logic I’ve ever heard.

    • Danhesseisabitch

      because if someone doesn’t buy them then tmobile will go out of business. that’s why. the only way you can be a low cost national carrier is by losing money. Whig rmobile and sprint have doing for a long time. look sprint bought nextel nd they stewed it up. it’s sprints own fault that they are as weak and pathetic as they are. it’s not AT&T’s fault that sprint couldn’t afford tmobile and AT&T can. just get over sprint. instead of spending all this money fighting this u should use all this money to. for your marketing. I’m sorry but having Dan Hesse in ur commercials is rediculous.

      • Anonymous

        You may discover that companies that are at the losing side are the most aggressive with trying to get back on top. This can manifest itself with more attractive pricing, better phones, better service. Since T-Mobile may get 6 Billion if the deal falls through they will have more money that they can use to compete with. The 6 Billion could be used to sustain them while they lower their prices to make themselves more attractive to the potential customer.

  • http://www.facebook.com/profile.php?id=100001633960345 Andrew Ruiz

    at&t go **** yourself! 

  • Mr Smith

    More rubbish from the Deathstar. I am a customer of them and don’t want this to go through. They are just trying to eliminate one more avenue of competition under the guise of “we need the spectrum”. No shiot you need the spectrum, if you had got off your asses for the last 4 years you wouldn’t be in the pickle you are in. Now its time to pay up.

    • Guest

      It kills me to read all of your dumb posts, I am an ATT/Deathstar customer and don’t have any issues. as a matter of fact i switched from Sprint 7 years ago and have had 0 issues with ATT since, I do travel the US frequently also. And as far as GSM monopoly seriously? GSM/CDMA its all the Cellular the only difference is the ability to easily use your device overseas and verizon and sprint have global phones right now…. to jump on a Vodaphone network, etc. with ease. I hope the merger goes through. lets stop wasting government money by throwing up road blocks for our companies….You guys all sound like we live in Russia or China where free market is non existent

      • Stoopered

        OMFG, seriously? The whole time I thought GSM and CDMA were a lot different. Glad to know its just the ability to travel. As for Free market, if we had a complete free market, you would be paying 500 per month for your At&t monopoly home phone right now (no competition eliminated the need to build a wireless network. Why innovate when you have no competition?). For a successful economy and for free market to work you have to prevent monopolies, and duopolies. If you do not want this competition Guest, then go live in Russia.

      • Danhesseisabitch

        look the fact that at&t will be the only gsm carrier doesnt matter. you can pretty much get a cdma version of any gsm phone. I dont know how any one can say that them being the only gsm carrier will hurt anyone. if you dont like at&t then go to sprint or verizon. its that simple. Stop crying about duopolies. we have a duopoly in microsoft and apple. we basically have a monopoly in every state when it comes to your choice of electricity company and cable company. What your basically saying is that if the merger goes thru then at&t and verizon will not compete with each other. to the contrary if the merger does go thru than it will push verizon even harder to try and become number 1 again. Like anything else, if verizon and at&t just sit on their asses than some company will come out of nowhere and bite them in the ass. Kmart did it back in the early days of walmart when they didnt see them as a competitor and look what happened. Microsoft sat on their asses and now apple has passed them up. nokia and rim sat on their asses and everyone is passing them up. You just have to let the market dictate everything.

  • Gagagagagagaga

    Ok everyone on here is has a point..but did you guys know that AT&T is the biggest donation giver to the house! Att has the government contract.

  • Davidusr

    Today T-mo, tomorrow Sprint!

  • Anonymous

    Now thats exactly what I am talking about dude. Well done indeed.
    total-privacy.au.tc

  • Wirelessmodz

    “allow AT&T to expand 4G LTE mobile broadband to another 55 million Americans”
    SO JUST HOW MANY AMERICANS HAVE 4G LTE ON YOUR NETWORK NOW ? i dont want this merger to go through i hate att and dropped more calls on att . then when nextel was overloaded back in the day, in one way i would sooner has tmobile not upgrade the stuff then let them fucking idiots that only care about money at att buy , im cool with a slow death to tmobile but not with att pushing there bs on me as a tmobile customer  

  • Michale11111

    “…more interested in protecting itself than it is in promoting competition that benefits consumers.” Kind of a joke to hear AT&T say that since they and VZW have done nothing except raise prices. Reduce the nukber of companies= reduced competition = higher prices. Hiding behind restructuring, renaming and reformulating offerings does notequal not lower prices.

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