AT&T Asks Court to Reject Sprint, C Spire Challenges to T-Mobile Buy
AT&T filed motions in the U.S. District Court in Washington asking the court to dismiss complaints filed by Sprint Nextel and C Spire Wireless (formerly Cellular South) against AT&T’s buy of T-Mobile. Judge Ellen Huvelle is expected to consider later this month following oral argument whether to allow the two to join the Department of Justice’s case against the deal (CD Sept 22 p1).
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
"The Sprint and Cellular South complaints should be dismissed as both are an obvious attempt to use the court to improve their own strategic interests,” AT&T General Counsel Wayne Watts said Friday. “Sprint has spoken disingenuously about its motives for opposing the merger and, as recently as last week, said the Department of Justice should block AT&T from merging with T-Mobile, but would have good reasons to instead allow Sprint to purchase them. Cellular South suggested that it would not oppose the merger if AT&T would agree not to engage in facilities-based competition in Mississippi. Such an extraordinary and inappropriate proposal simply confirms that what Cellular South fears is competition, not an alleged lack of competition.” AT&T filed with the court an email from C Spire CEO Hu Meena offering terms for an “internetworking agreement” between his company and AT&T.
Watts said AT&T is proceeding on “parallel paths” seeking a settlement with DOJ while also preparing for a trial slated to start in February. “We remain confident that we will reach a successful conclusion,” he said.
Sprint Senior Vice President Vonya McCann said there was nothing surprising about the motion. “AT&T promised to take this step more than two weeks ago but only filed this motion today because it was ordered to do so by the Court,” McCann said. “AT&T’s motion is without merit, and Sprint will respond to it next Friday and continue to cooperate with Judge Huvelle as she seeks to efficiently try both this case and the Justice Department’s case against AT&T."
C Spire Vice President Eric Graham also said the motion was expected. “Today’s motion will provide us with another good opportunity to demonstrate why AT&T’s proposed takeover of T-Mobile is blatantly anticompetitive, and will result in consumers facing higher prices, less innovation, fewer choices, and reduced competition,” he said.
Graham also responded to the exhibit AT&T filed with the court. “AT&T’s accusations flatly distort the record,” he said. “As the emails attached to AT&T’s motion make clear, Mr. Meena never suggested that AT&T not compete in Mississippi or anywhere else. In the days surrounding the announcement of AT&T’s takeover of T-Mobile, AT&T approached us in an effort to gain our support. Mr. Meena raised the same issues that we have articulated for years. In typical fashion, AT&T declined to address those issues and we moved on."
Meanwhile, DOJ notified the court that Puerto Rico has signed on to its complaint, joining the seven states that previously joined the case against the merger.