T-Mobile responds to Sprint, other merger opponents

By on June 21, 2011 at 4:36 PM.

T-Mobile responds to Sprint, other merger opponents

In what is no doubt a response to Sprint’s statement Tuesday morning that AT&T is increasing its spectrum the wrong way by purchasing T-Mobile, T-Mobile’s senior vice president of government affairs, Tom Sugure, has issued a formal statement to those who oppose the acquisition. “The opponents of the AT&T-T-Mobile merger have had their final say as part of the FCC’s formal pleading cycle and, not surprisingly, they have failed to offer any credible arguments to support their view that the Commission should deny the transaction,” Sugrue said in the statement. Sprint, which has lashed back at the acquisition from the get-go has said the purchase will stifle innovation. “What is surprising, however, is their repeated head-in-the-sand insistence that no spectrum crisis exists,” Sugrue added. “As part of their application, AT&T and T-Mobile provided a compelling showing of their need for more spectrum to continue to provide quality service to customers and roll out new technologies in the future. And the two companies have demonstrated that a combination of their networks and spectrum holdings is by far the best way to solve this problem and ensure improved service and enhanced innovation. The FCC has long acknowledged the harmful consequences of ignoring the spectrum crunch, and we are confident it will approve our proposed market-based solution.”

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Sprint urges government to oppose AT&T’s acquisition of T-Mobile

By on March 28, 2011 at 4:31 PM.

Sprint urges government to oppose AT&T’s acquisition of T-Mobile

Sprint CEO Dan Hesse has already expressed his concerns about AT&T’s purchase of T-Mobile from Deutsche Telecom, but today Sprint officially announced its opposition to the deal in a press release. Sprint states that the transaction will create a carrier that’s roughly three times its size — in terms of revenue — and “reverse nearly three decades of actions by the U.S. government.” Sprint noted that AT&T and Verizon Wireless would dominate the U.S. wireless postpaid market and be firmly in control of the availability and price of key inputs, such as backhaul, should the deal go through. “Sprint urges the United States government to block this anti-competitive acquisition,” writes Sprint’s senior vice president of government affairs, Vonya McCann “This transaction will harm consumers and harm competition at a time when this country can least afford it.” If it’s any consolation to Sprint, one FCC official believes that the deal won’t be rubber stamped, and could be a “steep climb at least.” Hit the jump to read the full release. More →

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FCC official: ‘No way chairman’s office rubber stamps’ AT&T’s T-Mobile acquisition

By on March 24, 2011 at 2:39 PM.

FCC official: ‘No way chairman’s office rubber stamps’ AT&T’s T-Mobile acquisition

Speaking to The Wall Street Journal on Thursday, an anonymous Federal Communications Commission official said “there’s no way the chairman’s office [will] rubber-stamp” AT&T’s $39 billion acquisition of Deutsche Telecom-owned T-Mobile USA, and that the approval process will be “a steep climb at least.” The FCC official went on to say that the FCC has not even started to evaluate the deal and that it will be scrutinized and denied or accepted based on whether or not it will be in the best interest of consumers. Similar deals have been doubted before, though, and the WSJ points to the merger between XM Satellite Radio and Sirius Satellite radio, which FCC chairman Kevin Martin said would be a high hurdle to approve back in 2007. Current FCC Chairman Julius Genachowski said Tuesday during his speech at the CTIA Wireless 2011 trade show, which we live blogged, that “healthy competition produces greater innovation and investment, lower prices, and better service.” AT&T’s purchase of T-Mobile is seen as likely decreasing the amount of competition in the U.S. wireless market, with just three major carriers competing for customers. But Genachowski has yet to comment on the acquisition proposal. As we said in an earlier editorial, T-Mobile customers could come out on top with this deal — if it ends up being approved. More →

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