WASHINGTON-Consumer groups said federal regulatory approval of Sprint Corp.’s proposed $35 billion acquisition of Nextel Communications Inc. should be conditioned on the merged entity’s divestiture of 2.5 GHz wireless licenses.
“FCC approval of this transaction will harm consumers by allowing one entity to control an excessive amount of mobile broadband communications spectrum in many markets of the country,” said the Consumer Federation of America and Consumers Union.
The Communications Workers of America said Sprint should be required to spin off its local telecommunications unit as a prerequisite for merger approval.
A group of 800 MHz licensees known as Safety and Frequency Equity Competition Coalition petitioned the FCC to deny the Sprint-Nextel merger, arguing it “threatens to exacerbate the competitive imbalance now present in certain smaller regional markets by increasing concentration in the offering of dispatch services.”
SouthernLinc Wireless did not oppose the merger, but asked the FCC to carefully analyze the proposed deal’s impact on roaming.
The National Urban League said the Sprint-Nextel transaction should be approved, noting both companies “share a commitment to diversity for their employees, their communities, their customers and their suppliers.”
The Sprint-Nextel merger is expected to be approved by the FCC and Justice Department later this year.
