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Sprint Sues to Halt Merger of AT&T and T-Mobile USA

Hopefully AT&T will do a better job of explaining how "Less Competition" somehow equates to "Lower Prices" :confused: :D

Wireless service is rapidly regressing to be the equivalent of "dial tone" in the Ma Bell days, the only major difference will be that Joe Consumer has "Two Ma's" now and they sleep in the same bedroom.

If Sprint gets the iPhone, I'll probably switch from AT&T to Sprint based on principle alone (which includes me writing a check to AT&T for the ETF).
 
alent1234 said:
This is the end of T-Mo. don't know if it was planned like this or things just happened, but that's it.

sprint getting the iphone will steal t-mo's customers. the lawsuits will drag the merger out. the value of the company will plummet and trigger the break up fee not having to paid. AT&T will call off the merger citing the fallen value of the company. T-Mo will then file for Chapter 11 at some point in the near future

can't say if at&t planned it out like this or sprint played their cards right. but someone is going to get a nice bonus for a job well done
Click to expand...

I guess you are not aware of the clause in their agreement with AT&T where they will receive billions of dollars as well as a bunch other goodies if the deal doesn't go through. They will come out of this smelling like a rose either way.
 
I'd like to see T-mobile and ATT merge IF AT&T lowered their prices to match T-mobile's unlimited data, text, and talk for $50 a month. If the price was right and the coverage was better than T-mobile currently is I think the consumer would win. HOWEVER, I don't think ATT will lower their prices and therefore would like to see T-mobile stay separate - and hopefully they will add the iPhone and improve their coverage. I currently am a T-mobile customer - the price is right.
 
I see no reason to believe the merger will in any way whatsoever benefit the consumer.

That said, T-Mobile will probably go out of business without the merger or without the iPhone 5.

Actually, the iPhone 5 (and T-Mobile's cheap data packages) could really turn the company's fortunes around.
 
phpmaven said:
I guess you are not aware of the clause in their agreement with AT&T where they will receive billions of dollars as well as a bunch other goodies if the deal doesn't go through. They will come out of this smelling like a rose either way.
Click to expand...

Me thinks that AT&T knew the merger wouldn't happen, but they went with it anyway to scew T-Mobile over. I think this company is pure evil, and Verizon is a close second evil.
 
Perhaps if T-Mobile does get the iPhone 5 then they can start by expanding their coverage and then truly compete against Verizon's LTE. Right now T-Mobile's HSPA+ can compete against Verizon's LTE but T-Mobile just lacks the coverage.
 
SAD*FACED*CLOWN said:
good thing this merger does not create one...this lawsuit will only delay the deal from going through
Click to expand...

It does. AT&T and T-Mo are the only US GSM carriers, excluding MVNOs.

EDIT: That's because Sprint and Verizon are CDMA, not GSM. But you're still free to downrank away your butthurt.
 
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I really dont get where this Sprint love fest is coming from

In the last few months there have been several policy changes and Sprint is now about evenly priced with ATT and Verizon.

First they eliminated there upgrade policy which allowed you to upgrade your phone every year if you were on there 69.99 plan, now you must wait 2 years.

They added a $10 "Smartphone fee" for every smartphone in their lineup. So in addition to any price for a plan listed on their website. You must add $10 if you use a smartphone on that plan. They dont even mention this when you sign up for a plan until you get to checkout and they show you what your monthly bill will be like.

They are planning to raise their ETF starting 9/9 from $200 to $350.

Every perk that Sprint once had over the competition is slowly disappearing.

All they have left is unlimited data and I wouldnt be surprised to see them start capping data if they get the Iphone on their network.

And all of this is coming from someone who has been with Sprint for the last 2 and a half years.

I joined them since their plans were reasonably priced and the coverage was decent but most important was they had a good phone selection. Recently however coverage has actually gotten worse (data speeds are horrible now and forget using your phone indoors) and their prices have increased.

I actually cant wait to see all these people defect from ATT and Verizon for Sprint only to realize its not all roses.

There is a reason Sprint has been bleeding postpaid customers and losing money.
 
I was actually glad to see this. I agree with the thoughts that having two huge carriers is bad for every body... except the carriers themselves.
 
phpmaven said:
I guess you are not aware of the clause in their agreement with AT&T where they will receive billions of dollars as well as a bunch other goodies if the deal doesn't go through. They will come out of this smelling like a rose either way.
Click to expand...
Hardly.
DT will pocket the cash ($3B), sell the spectrum or let it remain with AT&T in trade for the cash equivalent (another $3B) and the remaining T-Mobile USA assets will be sold at fire sale prices.
T-Mobile will not survive as a company for more than another year or two tops.
They will be parted out like an old car.
Then the DOJ can suck it when consumer choice gets limited by their misguided efforts.
Letting the merger move forward with conditions is a lot better for consumers than letting T-Mobile USA go bankrupt.
AT&T wins either way.
 
alent1234 said:
This is the end of T-Mo. don't know if it was planned like this or things just happened, but that's it.

sprint getting the iphone will steal t-mo's customers. the lawsuits will drag the merger out. the value of the company will plummet and trigger the break up fee not having to paid. AT&T will call off the merger citing the fallen value of the company. T-Mo will then file for Chapter 11 at some point in the near future

can't say if at&t planned it out like this or sprint played their cards right. but someone is going to get a nice bonus for a job well done
Click to expand...

Why will the break up fee not have to be paid?

Way it stands right now, I see T-Mobile in a win/win situation. They get $3 billion if the merger fails to go through, and they get even more if it does.

Planning to switch back to T-Mobile after the merger goes through. I was a T-Mobile/iPhone user since launch until the iPhone 4 came out. I paid half as much month to month and had less dropped calls and the same reception.
 
I think basic economics would indicate that ATT/T-Mobile would not be a monopoly.
 
MagnumOP said:
I think basic economics would indicate that ATT/T-Mobile would not be a monopoly.
Click to expand...

Nobody is saying they would be. But the Sprint statement is correct. If the merger was passed, then at&t and Verizon would control a hugely substantial portion of the market. And that would be very bad.
 
MagnumOP said:
I think basic economics would indicate that ATT/T-Mobile would not be a monopoly.
Click to expand...

It would monopolize the GSM spectrum, meaning it would be impossible to take GSM phones to another carrier and no competition for international roaming (AT&T/T-Mobile merged could set any price they want since all international phones are GSM).
 
GFLPraxis said:
It would monopolize the GSM spectrum, meaning it would be impossible to take GSM phones to another carrier and no competition for international roaming (AT&T/T-Mobile merged could set any price they want since all international phones are GSM).
Click to expand...
Not true... there are other GSM carriers in the US (regional) and the DOJ and FCC could set conditions on the merger to prevent AT&T from screwing them over on leasing agreements.
 
rjohnstone said:
Not true... there are other GSM carriers in the US (regional) and the DOJ and FCC could set conditions on the merger to prevent AT&T from screwing them over on leasing agreements.
Click to expand...

Name one regional GSM carrier. The GSM carriers you are thinking of outside of AT&T and T-Mobile are probably MVNOs.
 
:Tex: said:
Heard all the same arguments before... Sprint & Nextel...

http://money.cnn.com/2004/12/15/news/fortune500/sprint_nextel/
Click to expand...

I don't understand your comment. Sprint merged with Nextel and was able to provide much better service, better plans, while also keeping costs reasonable. AT&T merged with Cingular and brought nothing but negative changes to the table, why would you think anything different would come of a T-Mo take over?
 
Can't wait for TM to announce they are closing up shop and selling their assets to ATT. Deutsche Telekom has already stated they don't want to do business in the US anymore...
 
rjohnstone said:
Not true... there are other GSM carriers in the US (regional) and the DOJ and FCC could set conditions on the merger to prevent AT&T from screwing them over on leasing agreements.
Click to expand...

Name some.

As to "basic economics", you do not actually have to have a literal 100% domination of a market to be considered a monopoly.
 
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