After publicly stating its opposition to the deal back in March, Sprint today announced that it has formally asked the Federal Communications Commission (FCC) to block AT&T’s proposed T-Mobile USA acquisition. It believes that “the acquisition has no public interest benefit.” It would also result in “the Twin Bell duopolists of AT&T and Verizon” being able to stifle innovation and choice in new devices and applications.
Sprint goes on to suggest that the acquisition is due to AT&T’s own mismanagement of its own network, pointing out that it is already the largest holder of licensed spectrum and unused spectrum and “has simply failed to upgrade or invest sufficiently in its network.” It also points out that AT&T could invest a fraction of the takeover bid to expand its LTE network.
“This proposed takeover puts our mobile broadband future at a crossroads,” said Vonya B. McCann, senior vice president of Government Affairs for Sprint. “We can choose the open, competitive road best traveled, and protect American consumers, innovation and our economy, or we can choose the dead end that merely protects only AT&T and leads the rest of us back down the dirt road to Ma Bell.”
AT&T announced its intention to acquire T-Mobile USA for US$39 billion back in March.