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Sprint sues AT&T and Deutsche Telekom

Sections: Business News, Cellular Providers, Communications

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Sprint has followed the actions of the United States Department of Justice by filing a lawsuit of its own in the District of Columbia against AT&T and Deutsche Telekom. The suit was filed with the intention of blocking the proposed merger between AT&T and T-Mobile USA.

No wireless carrier has been more outspoken against the T-Mobile and AT&T merger than Sprint. The reason behind the lawsuit deals with the potential destruction of competition in the United States wireless industry.

Sprint claims the merger will hinder the innovation of new mobile devices, drive prices up and cause a duopoly of the wireless industry between AT&T and Verizon.

“As a result of the transaction, AT&T and Verizon would control more than three-quarters of that [one-quarter of a trillion dollar] market and 90 percent of the profits.

Sprint mentioned its business would take a hit as a result of the merger in addition to independent carriers. They may all have to raise prices to compete and hardware manufacturers would have little to no incentive to release their latest devices on any other carrier besides Verizon and AT&T.

Via [Sprint]

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