Thursday, June 2, 2011

Sprint pleads to the FCC to block AT&T – T-Mobile merger

Since AT&T said they plans to purchase T-Mobile for $39 billion, Sprint has been scared of the deal for its negative impact on the US market. Of course, we all know that the real reason they're scared is because the nation's third largest carrier is concerned about its own survival as a profitable company.

Efforts to prevent the merger are being taken and now Sprint has officially pleaded to the FCC asking it to block T-Mobile's acquisition from AT&T. If both companies merge, they would cover 43% of the nation's wireless subscribers with Verizon providing for another 39% of the market. That potential duopoly might hurt fair competition amongst carriers and cause a rise in service costs.

If the merger gets approved by the FCC, Sprint is likely to become the underdog of wireless carriers with a market share far behind that of the leading duo – AT&T and Verizon.

What do you guys think? Should the merger take place? Or would the potential duopoly affect you in a negative way? Feel free to share your opinion in the comments below.