Sprint files lawsuit to block AT&T and T-Mobile merger
(CBS) - AT&T has another lawsuit on its hands. This time Sprint Nextel is joining the Justice Department in an attempt to block the telecommunications giant from buying T-Mobile USA.
AT&T's battle to save T-Mobile deal
According to the Associated Press, Sprint claims the merger would "strengthen AT&T, already the second largest carrier, at the expense of competition. Verizon Wireless, the largest carrier, and AT&T would together serve three-quarters of all wireless subscribers."
Last week, the Department of Justice filed a civil antitrust lawsuit in U.S. District Court for the District of Columbia.
A press release by the Department of Justice stated: "The proposed $39 billion transaction would substantially lessen competition for mobile wireless telecommunications services across the United States, resulting in higher prices, poorer quality services, fewer choices and fewer innovative products for the millions of American consumers who rely on mobile wireless services in their everyday lives."
"Consumers across the country, including those in rural areas and those with lower incomes, benefit from competition among the nation's wireless carriers, particularly the four remaining national carriers. This lawsuit seeks to ensure that everyone can continue to receive the benefits of that competition," said Deputy Attorney General James M. Cole.
AT&T is one of the largest communications company in the world and second largest mobile wireless provider in the U.S. Verizon Wireless tops the list, while Sprint and T-Mobile come in third and fourth place.
