The $39 billion acquisition would combined the two of largest wireless carriers in the U.S., something Sprint says “would entrench AT&T’s and Verizon’s duopoly control over the wireless market.” AT&T is trying to fix major flaws in its network, while T-Mobile is hemorrhaging customers and needs an exit strategy.
The acquisition, if approved, would result in a company with 125+ million subscribers, more than Verizon’s 93+ million and dwarfing Sprint Nextel’s 49+ million customer base. Before it can go through though, it has to secure approval from the Department of Justice and the Federal Communications Commissions. And since it’s a high-profile deal, it’ ;s also likely to face scrutiny from Congress.
The First Shots Are Fired
That’s where Sprint comes in. It had some harsh words for AT&T in its announcement, claiming that the deal would create an anticompetitive duopoly:
“If approved, the proposed acquisition would create a combined company that would be almost three times the size of Sprint in terms of wireless revenue and would entrench AT&T's and Verizon's duopoly control over the wireless market. The wireless industry moving forward would be dominated overwhelmingly by two vertically integrated companies with unprecedented control over the U.S. 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. “
AT&T didn’t take long to fire back, though:
"With regard to Sprint’s recent statements about our transaction, we have always found that the most...
