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.

Comments (13)

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i hate mergers, they ruin services to consumers
Yep. That would rape Sprint.

Also, I've been away for a while, but now I'm back! Just leaving this little "P.S." to blogs I enjoy and want to know that I'm still here!
moviemonstrosityblog's avatar

moviemonstrosityblog · 726 weeks ago

what a bs
That's going to be a mega company!
Poor sprint, one of friends work for sprint. I hope nothing bad happens =/
im with Jesse Cohen Mega Company indeed
It depends. I don't know much about phone companies, but mergers can sometimes give larger companies too much clout, squeezing out smaller companies with their increased bargaining leverage (for materials, supplies, etc.). So it could point to some kind of future monopoly.
Just watched "Too Big To Fail"
Reminded of it with this story.
I think a merger might actually do some good. The area of service covered by the merged phones would be increased, this is a good thing.

On the other hand a monopoly would be bad. Perhaps a compromise would be best.
monopolies are bad
Sprint would definitely suffer from this. A monopoly is never a good thing for customers either
they all be communists!
uhohhh they're gonna get biiiiig !

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