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AT&T smug on Sprint/ RCA attack
Tuesday, 26 April 2011 07:09

Even as Sprint Nextel Corp. and the Rural Cellular Association (RCA) trained their guns at the AT&T and T-Mobile merger, AT&T fired another salvo by filing a Public Interest Statement with the Federal Communications Commission (FCC), arguing for its case for the proposed purchase of T-Mobile at $39 billion. Both Sprint and the RCA feel that the merger would harm competition and affect consumers. Sprint has already started lobbying against the deal in Washington DC - Thorsen French Advocacy, Franklin Square Group and The Fritts Goup have been roped in by the telco for its campaign against AT&T. On the other hand, the RCA CEO Steven K. Berry stated in an April 21 Statement that "RCA is absolutely, unyieldingly opposed to the AT&T/T-Mobile merger as presented. We do not view this merger as beneficial to consumers or to the wireless market in the United States. As proposed, it is a horizontal merger that will significantly reduce consumer choices and provide fewer partnering options for smaller carriers, and will strike a devastating blow to an already increasingly consolidated industry that competition may never recover from." Meanwhile, AT&T has put forth the benefits of the merger in the Statement it filed on April 21 as providing 4G LTE access to 97% of the US population, creation of new jobs and economic growth, particularly in the country’s rural regions. Analysts feel that the legal tangles could take upto a year to resolve before the deal goes through.
 

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