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Thursday, June 30, 2011

Sprint struggles to stop AT&T and T-Mobile merger

AT&T announced a few times ago that they want to merge T-Mobile into their management. Experts have been uttering worry about the possibility of the monopoly if the merger really takes place. The merger will make the AT&T and Verizon Wireless hold up to 79 percent of the U.S. market share.

Based on the market share, AT&T counts the second seat while the highest seat is occupied by Verizon Wireless.  Sprint sits on the third in the list so that unsurprisingly they struggle hard to block the merger. Sprint Nextel CEO Dan Hesse has been running through the states and to Washington to convince legislators of 18 states to stop the merger.

While working hard to draw public opinion toward his side, Mr. Hesse is also trying to convince top tech companies that the merger will be disaster for the industry. Sprint recently filed a dissent amounted to 377 pages with the Federal Communications Commission. Sprints’ engineers even also tried to convince AT&T to cancel the merger by showing how AT&T is able to optimize its existing network resources.

AT&T was still convinced that it will have the greater benefits when the merger is successful. Last week, they stated that they are pursuing the way to fully merger T-Mobile USA in March 2012. They are now collecting the information for the second round hearing asked by the Justice Department. Meetings between the company and FCC have been also scheduled.

The merger, if successful, will worth about $39 billion. If it is failed, AT&T will have to pay a compensation of $6 billion in services, cash and assets to Deutsche Telekom.

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