September 26, 2011
In its complaint to block the AT&T/T-Mobile merger, Sprint writes: “By acquiring T-Mobile, AT&T would be removing a low price and innovative maverick competitor that provides particularly disruptive competition in the marketplace.” [Sprint Nextel Corporation v AT&T, Complaint Filed in U.S. District Court for the District of Columbia, Sept. 6, 2011]
But, in truth, a stand-alone T-Mobile would not be a strong competitor. Without the capital and spectrum to invest in the latest technology, an independent T-Mobile’s market share and asset values will continue to decline, and any hopes of it serving as an “innovative maverick competitor” in the future will be a pipe dream.
Posted by EyeOnSprint in: Merger