Telecompetitor Arches

AT&T Wants to Kill Sprint-Clearwire Venture

announced their intention to oppose the . AT&T says the regulatory review process isn’t robust enough because Sprint and are under reporting the amount of spectrum they will actually utilize. AT&T argues that if all the spectrum represented by the Sprint-Clearwire merger were represented, the FCC would have to scrutinize the merger more closely. This issue, they argue, is grounds to deny the merger.

AT&T has reason to kill the merger. The combined entity will have the capability to get 4G to market before AT&T Mobility. In addition, the new Clearwire will empower cable companies to gain a wireless product. Both of these developments potentially impact the core of AT&T’s growth engines – wireless and broadband. A successful Clearwire will grab existing and potential market share from AT&T Mobility. Additionally, Clearwire’s cable partners will conceivably gain “three screen” capability, allowing them to counter AT&T’s current competitive advantage.

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