Sprint Files Suit to Block AT&T and T-Mobile Merger

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Led by CEO Dan Hesse, Sprint has been one of the most outspoken foes of the AT&T and T-Mobile deal. Earlier this year, Sprint filed to block the merger, offered AT&T  a solution to its spectrum problems, and proposed “nukes” to stop the merger once and for all. Now, shortly after the Department of Justice’s filing to block the deal, the U.S.’s third largest cell phone carrier has also filed to oppose the merger.

Sprint claims that AT&T’s corporate marriage to T-Mobile will violate the Clayton Anti-Trust Act, sending the wireless market back to a 1980s-style duopoly. With T-Mobile out of the way, Sprint has no chance of competing against Verizon and AT&T. And with Sprint gone, AT&T and Verizon’s dominance will increase prices and cut out innovation.

Since the DOJ’s move to oppose the deal last week, AT&T has been scrambling to save the marriage. AT&T argues that its merge with T-Mobile will bring thousands of jobs back to the U.S., further develop their LTE spectrum, and bring better service to rural areas.

Things aren’t looking great for AT&T, who stands to pay T-Mobile a $3 billion termination fee, with up to another $3 billion in spectrum fees.

The merger is awaiting a final decision from the FCC. A hearing date has been set for September 21st.