Sprint concerned over AT&T, T-Mobile merger
Sprint responded to the announcement of the acquisition of T-Mobile by AT&T with a statement that expresses concern about the proposed merger. Sprint suggests federal regulators take a close look at the deal, which will dramatically change the structure of the wireless industry in the US.
The now #3 wireless carrier in the US points out that a post-merger AT&T and Verizon will control almost 80 percent of the wireless post-paid market and will set both the price and availability of valuable assets, such as backhaul capacity and wireless access, which the smaller carriers need to compete. The merger would also leave Sprint in the dust in terms of subscriber numbers.
Sprint has the most to lose from a merger between AT&T and T-Mobile. The merger would vault AT&T to the top as the nation's largest GSM carrier with 130 million subscribers. Verizon would trail the merged company as the nation's largest CDMA carrier with about 100 million subscribers. Though it will be smaller, Verizon has a strong lineup of handsets with the Apple iPhone and Android offerings, such as the HTC Thunderbolt. Verizon is also successfully deploying its LTE network on the 700 MHz band and has little to fear from a stronger AT&T and T-Mobile.
Sprint, on the other hand, relies on its partnership with Clearwire for 4G expansion, but the carrier is considering a move to LTE. It has a plan forward for 4G, but its future prospect is not as strong as Verizon or AT&T in this growing wireless broadband market. Sprint also lacks the iPhone and other cutting-edge handsets like AT&T's dual-core Motorola Atrix 4G. It is already behind AT&T and Verizon and will be at a decided disadvantage if T-Mobile merges with AT&T.
The full text of Sprint's statement can be found after the break.
Sprint said this in a statement about the acquisition of T-Mobile by AT&T:
"The combination of AT&T and T-Mobile USA, if approved by the Department of Justice (DOJ) and Federal Communications Commission (FCC), would alter dramatically the structure of the communications industry. AT&T and Verizon are already by far the largest wireless providers. A combined AT&T and T-Mobile would be almost three times the size of Sprint, the third largest wireless competitor."
"If approved, the merger would result in a wireless industry dominated overwhelmingly by two vertically-integrated companies that control almost 80% of the US wireless post-paid market, as well as the availability and price of key inputs such as backhaul and access needed by other wireless companies to compete. The DOJ and the FCC must decide if this transaction is in the best interest of consumers and the US economy overall, and determine if innovation and robust competition would be impacted adversely by this dramatic change in the structure of the industry."
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Sprint responded to the announcement of the acquisition of T-Mobile by AT&T with a statement that expresses concern about the...
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I hope Sprint is going to fight this merger with all it's got, I don't believe it's fair to say Sprint is going to fold but a fight for survival could bring out the best in them and bring on better services, prices and innovation. I think millions of consumers would love Sprint to flourish.
I'm sad that T-mobile's great priced plans and service are going to come to an end once they get swallowed up by AT&T. AT&T has the worst wireless carrier in the country with below average scores in almost every attribute. I expect cell phone prices to go up and the service to go down but I think coverage and reception will be amazing.
The best thing to do however is to go onto prepaid Net10 as soon as your contract with AT&T expires so that you can get control of your cell phone expenses and not to have to pay any hidden fee's or cancellation fee's.
@ Eric Swinson
Vodafone already owns Verizon. Verizon is one ofVodafones sub in the US.
Easily the most well-written article I've seen on TUAW in a long while.
March 22 2011 at 3:28 PM Report abuse Permalink rate up rate down ReplyNot long ago, AT&T was was struggling to stay profitable, and was bought by Cingular wireless. It stayed that way for a very short time until AT&T bought out Cingular. AT&T saved itself when it started carrying better cell phones, and it had the exclusivity rights to the i phone. The problem with Sprint is that they used to have better service, and carried better phones than AT&T. That is no longer the case.
Sprint lost a lot of custom's to Verizon and AT&T and even T mobile, after their acquisition of Nextel. There were too many problems, and many customers abandoned the carrier and never came back. Sprint was never really able to recover from the huge loss of customers. It also took forever before it carried any credible smart phone. Sprint set-back and watched the closest competition leave it at the starting gate.
It's a competitive jungle out there in the smart phone market, and Sprint was slow to act, and it's acquisition of Nextel was it's very undoing. This is perhaps the end of sprint as we know it, unless they get a miraculous, innovating, new technology that's going to unseat Verizon, & AT&T's i phone. I don't see that happening any time soon, or soon enough.
Translation: "We're scared, please help us big brother." -Sprint
March 22 2011 at 5:30 AM Report abuse Permalink rate up rate down ReplyYou know, as a T-Mobile user, this merger thing did not sound so bad at first. However ever, once I got wind that if this thing goes through, all T-Mobile 3G phones will be rendered useless...
This is so because AT&T will convert all of T-Mobiles 3G towers to AT&T 4G towers and there for 3G devices wont get internet service anymore. You can read more about it here: http://goo.gl/X7VGV
What is needed here is a “game change†moment. And sprint and apple are in a prime position to do it right now.
Sprint announces that it will be ending native voice service on it’s network, which will be strictly data from now on. All voice service will be provided by VoIP providers. As a part of this, all phones on sprint going forward will be “smart†phones, and that they are going to upgrade their network to LTE with WiMax being used to build up backend.
Apple announces that it has developed a VoIP service which will be included into it’s new MobileMe suite of applications. They further announce that they that they are partnering with sprint and putting cell chips in all their computers. And they announce the iPhone mini, basically a slightly larger last generation iPod nano with a full front touch screen and wifi/cell chip, exclusively on sprint, priced around $350 new or $50 with a 2nd contract.
Sprint was #1 not too long ago, their current predicament is a tesament to their poor business planning. Why did everyone leave Sprint? When I sold cell phone about 7-8 years ago people always complained about the poor overseas customer service and lack of phones.
They single handedly killed a unique and profitable Nextel. Who cares if they go, good riddance.
Hmmm. Does anyone recall if AT&T complained when Sprint purchased Nextel? Maybe this is payback...
March 21 2011 at 7:31 PM Report abuse Permalink rate up rate down ReplyI was almost thinking the same thing... I was gonna say Nobody at sprint seemed to care when they bought Nextel/Boost Mobile a few years back.
March 22 2011 at 4:06 AM Report abuse Permalink rate up rate down ReplyThere are still a handful of little carriers out there Sprint could pick up. Like US cellular I'm actual surprised they are still around.
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