AT&T says no to Sprint and Clearwire merger (US)AT&T has asked the Federal Communication Commission to deny the merger request from Sprint Nextel and Clearwire. A merger that was announced last month, to facilitate a national wireless internet network that would operate on a block of airwaves partly reserved for schools, cities and other nonprofits.
In a filing submitted to the FCC, AT&T said 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.” In listing their holdings, AT&T said Sprint and Clearwire have discounted some of the airwaves they intend to use for the Internet service because it isn’t operational yet. If those airwaves were to be taken into account, the proposed merger would be subjected to heightened scrutiny, AT&T said.
“While AT&T does not fundamentally oppose the underlying transactions, the regulatory process must be consistent for all entrants,” AT&T’s filing said. “The applicants themselves have positioned their company as the single largest holder of broadband mobile spectrum in the country.”
AT&T argued that when it acquired Dobson Communications last year, the FCC examined airwaves that AT&T hasn’t yet accessed. AT&T purchased a block of spectrum in a recent auction that won’t be available until February.
Sprint and Clearwire have documented to the FCC on a county-by-county basis how much spectrum they would hold.
Officials don’t deny that Sprint and Clearwire will be in direct competition with AT&T for wireless Internet customers, which will bring competition to the broadband industry, giving everyone another option.
