Sprint on Tuesday upped the ante in its opposition to AT&T’s merger with T-Mobile when it filed an antitrust suit to stop the deal from being consummated.
The suit is separate from the one filed by the U.S. Justice Department last Wednesday.
Sprint’s vice president of litigation had strong words for the proposed merger, calling it “illegal.”
“Sprint opposes AT&T’s proposed takeover of T-Mobile,” Susan Z. Haller, Sprint’s vice president of litigation said in a press statement. “With today’s legal action, we are continuing that advocacy on behalf of consumers and competition, and expect to contribute our expertise and resources in proving that the proposed transaction is illegal.”
Some analysts believe that if the AT&T deal falls through, Sprint could merge with T-Mobile instead.
In its Tuesday statement, Sprint charged that the merger would result in higher prices and harm innovation because of a decline in any significant competition. Sprint noted that the combined AT&T/T-Mobile entity would control three quarters of the national wireless market and 90 percent of profits in the sector.
Sprint also spelled out how it thinks it would be harmed as a result of the merger:
“If the transaction were to be allowed, a combined AT&T and T-Mobile would have the ability to use its control over backhaul, roaming and spectrum, and its increased market position to exclude competitors, raise their costs, restrict their access to handsets, damage their businesses and ultimately to lessen competition,” the company said in its Tuesday statement.
The U.S. Justice Department filed an antitrust suit against AT&T and T-Mobile in federal district court for the District of Columbia last Wednesday with the goal of blocking the $39 billion merger.
