Sprint Opposes AT&T’s Deal with T-Mobile

Sprint Nextel Corp. opposes the proposed $39 billion deal between AT&T Inc. and T-Mobile USA Inc., the wireless provider announced in a statement on Monday.

The third largest wireless provider in United States urges the government to block the agreement. Voya McCann, Sprint’s senior vice president for government affairs, says the deal will cause harm in the industry and will be dominated by two service carriers, which are Verizon Wireless and a much larger AT&T T-Mobile.

AT&T Inc. planned to takeover T-Mobile USA by purchasing it for $39 billion from its parent company Deutsche Telekom AG. The agreement between the companies was announced March 20. However, it will take effect once it has been approved by the regulators.

Sprint’s chief executive officer Dan Heese said in an interview last week that they will file objections at the U.S. Congress once they start to review the agreement. The government is expected to review the deal comprehensively.

Also, key lawmakers promised to execute hearings. Some of the lawmakers, as well as some consumer advocates believe that the deal could increase prices for wireless subscribers and lessen the competition in the industry.

Sprint said it can compete with the truly dynamic marketplace. AT&T’s plans to purchase T-Mobile can reverse the years of action by the court and federal government to make the telecommunications market in the United States more competitive.

AT&T increased 75 cents to $29.60 on Monday in New York Stock Exchange while Sprint increased 5 cents to $4.73 in the composite trading.

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