. . TELECOMMUNICATIONS : BUSINESS: ACQUISITIONS MERGERS : UNITED STATES: GOVERNMENT : LAW: CASES : LAW: ANTITRUST LAW: T-Mobile and Sprint Should Merge: 10 Reasons Why . . T-Mobile and Sprint Should Merge: 10 Reasons Why By: Don Reisinger 2011-09-06 E-Weekhttp://www.eweek.com/c/a/Mobile-and-Wireless/ TMobile-And-Sprint-Should-Merge-10-Reasons-Why-257373/
. A shorter URL for the above link: . http://tinyurl.com/3o6cyef . . Table of Contents: . T-Mobile and Sprint Should Merge: 10 Reasons Why Consolidation Will Happen One Way or Another .News Analysis: Now that it looks likely that the proposed AT&T-T-Mobile merger will be blocked in federal court, perhaps its time to talk about why a T-Mobile-Sprint merger makes more sense and might even have a better chance of passing antitrust scrutiny.
Rate This Article: . T-Mobile and Sprint Should Merge: 10 Reasons Why .The wireless industry is in a state of flux right now. Earlier this year, when AT&T announced plans to acquire T-Mobile USA from Deutsche Telekom in a deal valued at $39 billion, there was immediate concern for the future of the industry.
.The critics said that the merger would create a duopoly comprised of Verizon and AT&T that controlled 75 percent of the wireless market and 90 percent of the profits that dwarfed Sprint. As a result the wireless market would lose all semblance of real competition and Sprint would be forced to sell out to Verizon or be crushed out of existence.
.But last month, the U.S. Department of Justice gave Sprint a reprieve by filing suit in the District of Columbia, seeking an injunction against the merger on the ground that it was anticompetitive and violated federal antitrust law. On Sept. 6 Sprint filed its own antitrust lawsuit in federal court seeking to block the merger.
.The FCC, which also must approve the deal, has expressed some concern over the merger, but has yet to make a final determination on whether to allow the transfer of wireless licenses required by the deal. While AT&T can fight the lawsuits in court, it looks like the legal damage is fatal.
.However, perhaps another deal could be forged from the ruins of this one. The way it looks right now, the market would be well-served if Sprint and T-Mobile combine forces to take on AT&T and Verizon in the U.S. wireless business. Not only will it create a more competitive environment, but Verizon and AT&T might just start to worry. With the current state of competition in the industry, that wouldnt be a bad thing.
. Read on to find out why Sprint and T-Mobile USA should merge. . http://tinyurl.com/3o6cyef . 1. The government would approve it 2. Both companies need each other 3. AT&T and Verizon would face real competition 4. Theyre investing heavily in infrastructure . snip .Sprint Nextel Files Antitrust Suit Against ATandT, Deutsche Telekom, T-Mobile
By: Wayne Rash 2011-09-06 E-Weekhttp://www.eweek.com/c/a/Mobile-and-Wireless/Sprint-Nextel-Files- Antitrust-Suit-Against-ATT-Deutsche-Telekom-TMobile-825727/
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