AT&T moves to block Sprint merger with Clearwire for WiMAX network

Sprint (NYSE: S) has been working hard to redefine themselves as a data-centric provider with the premier high-speed wireless broadband network in the US. And, with good reason. Sprint’s losing customers left and right and bleeding money even faster. They clearly can’t compete in the voice-call business that is dominated by AT&T (NYSE: T) and Verizon (NYSE: VZ), so Sprint is going to have to really push hard on their wireless broadband service. They’re even selling off cell-towers to help keep their WiMAX XOHM aspirations alive.

And, AT&T knows just what Sprint is trying to do. Sprint’s WiMAX-based XOHM network will beat AT&T to the high-speed wireless-punch by at least a year (likely more). AT&T’s 4G LTE network isn’t going to see the light of day for at least a few more years, and Sprint’s XOHM service is just around the corner.

As such, AT&T has moved to block the Sprint merger with Clearwire. AT&T has asked the FCC to deny the merger between the two companies, potentially throwing a wrench in both companies’ plans to launch a nationwide WiMAX network in the US.

In contention is the need for more review. AT&T claims that Sprint and Clearwire “openly state that they intend to compete with other national wireless providers – including AT&T – yet they fail to make the required showings necessary for the commission’s review.”

Sprint Spokesman

Scott Sloat stated that almost 50 public entities covered by Sprint’s proposed network airwaves are in favor of the merger. “They are supportive of the transaction because it would bring wireless mobile broadband to that spectrum faster, and they’ll be able to utilize it,” Sloat said.

AT&T was previously scrutinized by the FCC for their acquisition of Dobson some months ago, and it’s starting to sound like Big Blue is crying foul on the upcoming Sprint/Clearwire partnership.

[Via: CNN]