Sprint Nextel argues against AT&T/T-Mo merger in state filing

Government filings can be tricky, as petitioners try to state their claims in the best possible light. Such might be the case with Sprint Nextel Corp. (S), which continued its campaign to try to stop AT&T Mobility’s (T) proposed acquisition of T-Mobile USA Inc. (DTEGY), filing a petition to intervene with the West Virginia Public Service Commission.
Sprint, which is a competitive local exchange carrier in the state, as well as a wireless operator, said the merger would give AT&T less incentive to innovate, among other things, and that AT&T has a poor track record for innovation. By contrast, Sprint says T-Mobile was the first company “to offer the innovative Android wireless phone,” ignoring the fact that AT&T Mobility was the first carrier to offer the innovative iPhone from Apple Inc.
Sprint also challenges AT&T’s LTE plans in West Virginia. “In their petition, … AT&T and T-Mobile emphasize T-Mobile’s limited presence in West Virginia. Nonetheless AT&T alleges that this merger will allow AT&T to deploy ‘LTE’ wireless capabilities far more broadly ‘across virtually all of West Virginia.’ Based on what has been filed publicly, nothing substantiates AT&T’s claim that the merger gives AT&T anything it does not have today that will facilitate its ability to deploy next generation wireless more broadly in West Virginia. On the other hand, loss of a vibrant competitor operating today in several West Virginia markets and with the potential to enter more will indeed harm wireless consumers in this state,” Sprint stated in its filing.
AT&T responded with its own blogpost today. “AT&T is trying to bring the latest and fastest mobile Internet service to most of the citizens of West Virginia. Since Sprint is trying to stop that, we hope state officials will ask Sprint what its own plans are for bringing LTE speeds to the people of West Virginia,” said J. Michael Schweder, AT&T’s President of the Mid-Atlantic Region. “We suspect Sprint either has no such plan, or that its own plans pale in comparison to AT&T’s. In either case, we’re confident West Virginians will see Sprint’s filing for what it is – a cynical effort to hurt a competitor, even if the ones truly hurt are the many people of West Virginia who would be denied the fast mobile Internet speeds they need and want.”