Sprint Releases Strong Response to AT&T/T-Mobile Merger

This is a discussion on Sprint Releases Strong Response to AT&T/T-Mobile Merger within the Android News forums, part of the Android.net category; A surprising plot-twist in the story of smartphone carriers just developed. Previously, our sister-site at SprintDroids.com reported that a merger between Sprint and T-mobile was ...

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Thread: Sprint Releases Strong Response to AT&T/T-Mobile Merger

  1. #1
    Editor in Chief dgstorm's Avatar
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    Sprint Releases Strong Response to AT&T/T-Mobile Merger


    A surprising plot-twist in the story of smartphone carriers just developed. Previously, our sister-site at SprintDroids.com reported that a merger between Sprint and T-mobile was in the works. Unfortunately, it turns out that AT&T will probably buy-out T-Mobile for $39 Billion instead.

    A Sprint merger with T-Mobile would have been a good thing for the industry. It would have made the two carriers that were tied for third place in the industry actually powerful enough to be competitive with AT&T and Verizon. This competition would have been great for consumers as it would have kept prices down and customer service up amongst all the carriers. An AT&T and T-Mobile merger would eventually do the opposite.

    Needless to say, Sprint was not too happy about this merger and issued a strong response with in an official press release. Here's what they had to say,
    "The combination of AT&T and T-Mobile USA, if approved by the Department of Justice (DOJ) and Federal Communications Commission (FCC), would alter dramatically the structure of the communications industry,” Sprint said in a statement. “AT&T and Verizon are already by far the largest wireless providers. A combined AT&T and T-Mobile would be almost three times the size of Sprint, the third largest wireless competitor...

    If approved, the merger would result in a wireless industry dominated overwhelmingly by two vertically-integrated companies that control almost 80% of the US wireless post-paid market, as well as the availability and price of key inputs such as backhaul and access needed by other wireless companies to compete... The DOJ and the FCC must decide if this transaction is in the best interest of consumers and the US economy overall, and determine if innovation and robust competition would be impacted adversely and by this dramatic change in the structure of the industry.”
    There is truth in their words. Ultimately, I hope the FCC and the DOJ shoot down this merger between AT&T and T-Mobile. A combined AT&T/T-Mobile would be powerful enough that they could virtually ignore Sprint, leaving them 'eating scraps'. This would leave just Verizon and the new AT&T in the position of dominating their customers eventually. It seems that in the long run, it will be rather 'anti-competitive' and reduce choice and customer service for consumers. What do you think?

    Source: SprintDroids via PhoneArena

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  3. #2
    Super Moderator/RS furbearingmammal's Avatar
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    How would Sprint have managed to integrate the GSM T-Mobile with their CDMA network? That's something I want answered before anyone gets anything stuck in their craw.
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    Android Enthusiast shadavis08's Avatar
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    actually they could have just left the gsm network and used up the available spetrum holdings that t-mobile owns and used it for their up coming lte service .

    saaa--weet , Projected from my HPwebOS sprintified franken pre2 from another realm !! woo hoo take that sprint !!

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    Super Moderator/RS furbearingmammal's Avatar
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    Not a bad idea, but the cost in retasking the towers would have been prohibitive, in my opinion, so it would have been better if they'd carried a "bring your old phone with you" promotion. AT&T can just gobble them up, which is their plan. Meh. I agree, T-Mo and Sprint would have been a GREAT collaberation. Now Verizon doesn't feel any pressure to toe the line, so AT&T and VZW can just bleed us white.
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    Android Enthusiast mountainbikermark's Avatar
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    Real question. When it becomes just 1 carrier will it be ATT that buys Verizon or Verizon that buys ATT?
    Dont say its not possible as all the acronymed departments seem to be just allowing it to happen


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    Super Moderator/RS furbearingmammal's Avatar
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    They'd just opened an investigation, I thought. I find this to be fairly anti-competitive, but unless they have a total penetration of a certain percentage it doesn't count in a DOJ investigation.
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    Android Enthusiast shadavis08's Avatar
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    it will be just 1 or 2 carriers at some point and the government will just say its for our own good !!

    saaa--weet , Projected from my HPwebOS sprintified franken pre2 from another realm !! woo hoo take that sprint !!

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    Android Enthusiast Paul Gyver's Avatar
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    One will never happen but only two major carriers scares the @##%&& out of me. Goodbye $30 data plans

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    Quote Originally Posted by furbearingmammal View Post
    How would Sprint have managed to integrate the GSM T-Mobile with their CDMA network? That's something I want answered before anyone gets anything stuck in their craw.
    They already ate iDEN and that turned out to be a bomb disguised as a debbie cake... Another buyout of ANY kind is just not in their deck of cards.

    Need Assistance? Contact me at dorian@android.net

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    Super Moderator/RS furbearingmammal's Avatar
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    That's what I figured. Merging a CDMA and GSM network under one heading would be a nightmare. The only way they could do it is to run two separate networks on the same towers, a logistic headache (at best), and offer some sort of "whatever phone you have/want" thing. I'm thinking there's a good chance (unless they took ownership and left everything else alone) it would have sunk Sprint.
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