In a rare occurrence, AT&T and Sprint have come to an agreement to begin their own legal battles in court after an upcoming trial between AT&T and the U.S. Department of Justice. Both carriers decided they don’t want to interfere with the case, which will begin on February 13, 2012.
The U.S. Justice Department originally filed a lawsuit on August 31st against the AT&T and T-Mobile merger for reasons similar to Sprint’s. Supposedly, the acquisition could create a monopoly in the wireless industry. Seven states joined the government in support of the case.
Sprint filed its own lawsuit shortly after on September 6th, and Cellular South followed on September 19th. The carriers’ lawsuits revolve around competition and the fact that their ability to compete with the other major carriers would be dramatically weakened should the AT&T and T-Mobile merger pull through.
A hearing for all three cases — U.S. Justice Department, Sprint, and Cellular South — will take place on December 9th.
Though one might choose to be sympathetic toward Sprint and Cellular South, I respectfully disagree with the proposal that AT&T’s acquisition of T-Mobile would have monopolizing effects. Verizon and Sprint would still exist in peace, as would all the other smaller carriers in the United States. Verizon clearly isn’t too worried about it, since it has remained silent. Perhaps the lawsuits from Sprint and Cellular South were filed out of fear rather than merit.