Leap Wireless International Inc. (LEAP) joined its colleagues in denouncing the potential merger between AT&T Mobility (T) and T-Mobile USA Inc. (DTEGY) as bad for consumers as it would decrease competition and innovation, as well as investment in the wireless sector. Sprint Nextel Corp. (S) has lead the charge against the merger, while competitor Verizon Wireless (VZ) has only said the deal was inevitable.
“We oppose the proposed acquisition. A competitive marketplace is critical to wireless innovation — and small and mid-sized carriers such as Cricket are driving that innovation,” said Leap President and CEO Doug Hutcheson. “The proposed acquisition would eliminate T-Mobile as an important nationwide competitor in the industry. It also raises problems of spectrum concentration and impaired access to spectrum by competitive carriers; undercuts access to wholesale voice and data roaming services; and threatens to foster reduced device availability and reduced interoperability of wireless networks and devices, among many other issues. Those results are not in the public interest.”
Sprint Nextel has been particularly aggressive in opposing the proposed $39 billion merger, filing petitions against it at the state and federal levels. Verizon, for its part, said it views AT&T as a strong competitor with or without T-Mobile USA as a partner. At last week’s TIA2011: Inside the Network conference, Verizon Communications Inc. CTO Tony Melone said Verizon expected AT&T to respond to Verizon Wireless’ aggressive LTE rollout, saying “no one is sitting back” as their competitors move forward.