How will AT&T Merger with T-Mobile Affect Sprint

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(Best Syndication News) Competitors aren’t the only ones eyeing the AT&T / T-Mobile merger with suspicion. Larger isn’t always better, according to some lawmakers.

AT&T is looking to buy T-Mobile for an estimated $39 billion. This could be a time of mergers and Sprint could be the next takeover target. Senators want more competition, not less.

At a Senate Judiciary Committee on Antitrust, Competition Policy and Consumer Rights, Senator Patrick Leahy (D-Vt.) expressed concerns. “This acquisition would further consolidate an already concentrated market for wireless communication.” Leahy wants the Federal Communications Commission (FCC) to look at the merger closely.

AT&T Inc. told the committee that the deal would give them the resources to improve service. But Senator Herb Kohl said the deal could hurt consumers. "An industry that was once a monopoly owned by AT&T in the last century is in danger of reverting to a duopoly in this new century," Kohl said.

Sprint has been doing well despite the threat of a merger. They added 1.1 million wireless subscribers in the first quarter and they now have 51 million users. For the first time in four years the company recorded year-to-year growth in adjusted OIBDA (operating income/loss before depreciation, amortization, asset impairments and abandonments).

By: Dan Wilson



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