Sprint Sues To Block AT&T, T-Mobile Merger

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Washington - Sprint Nextel joined the lawsuit to block AT&T's proposed acquisition of T-Mobile.

Sprint Nextel filed its own antitrust lawsuit following last week's filing of a

lawsuit by the Department of Justice

, which seeks to block the merger on the grounds that it would be anticompetitive.

In its suit, Sprint Nextel sued AT&T, T-Mobile and T-Mobile parent Deutsche Telekom on the grounds that the merger would violate the Clayton Antitrust Act. Litigation VP Susan Haller called the proposed acquisition "illegal" under section 7 of the law.

The acquisition, Sprint Nextel said, would cause higher prices, reduce innovation, and leave the top two carriers -- AT&T and Verizon -- after the merger with control of more than three-quarters of the market and 90 percent of the profits. In addition, Sprint said the merger would harm it and other independent wireless carriers.

 "If the transaction were to be allowed, a combined AT&T and T-Mobile would have the ability to use its control over backhaul, roaming and spectrum, and its increased market position to exclude competitors, raise their costs, restrict their access to handsets, damage their businesses and ultimately to lessen competition," Sprint Nextel said.


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