Sprint Joins Feds, Files Lawsuit to Block AT&T’s T-Mobile Takeover

Sprint Nextel filed its own lawsuit on Tuesday in an effort to derail a $39 billion deal that could have ATT&T take over T-Mobile.

Sprint filed its suit in federal court in the District of Columbia as a case related to the Justice Department's effort to block the pending merger.

Sprint believes the merger could harm consumers and stifle competition.

Sprint opposes AT&T's proposed takeover of T-Mobile, said Susan Z. Haller, vice president-Litigation, Sprint in a statement. With today's legal action, we are continuing that advocacy on behalf of consumers and competition, and expect to contribute our expertise and resources in proving that the proposed transaction is illegal.

In its lawsuit, Sprint said a merger between ATT&T and T-Mobile would harm retail consumers and corporate customers by causing higher prices and less innovation.

The telecom company also stated as a result of the transaction, AT&T and Verizon would control more than three-quarters of that market and 90 percent of the profits. Sprint also feels the merger could harm its business 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 stated in a new release.

The Sprint lawsuit is hot on the heels of a similar suit filed by the U.S. Department of Justice last week. The feds also believe that the merger eliminate competition in the market, lead to higher prices, fewer choices and lower quality products for such services.