The often-overlooked Sprint made two majors moves this week to take center stage in the “battle of the telecoms.” Sprint began the week by filing a suit on behalf of “consumers and competition” against both AT&T and T-Mobile in response to the potential merger between the two wireless companies and the recent block by the Department of Justice’s civil antitrust lawsuit..
Sprint’s filing is hardly surprising since they petitioned the Federal Communications Commission to block the merger and had no interest in potential deal sweeteners. Sprint likens the potential AT&T and Verizon control of the market to “Twin Bells.” The T-Mobile merger would give AT&T and Verizon “more than 78% of revenue and 88% of profits” and leave Sprint, the third and only remaining national carrier, in the dust. While Sprint’s push to block the merger may initially have seemed like an act of desperation, with the move of the Department of Justice to block the merger already in place, Sprint’s lawsuit can only add another level of concern for AT&T and T-Mobile as they are now forced to defend their proposed merger on multiple fronts.
However, AT&T may have more to worry about from Sprint than just a lawsuit. A rumor leaked on Friday that Sprint would not only soon be offering the coveted iPhone 5, but unlike AT&T and Verizon, Sprint would continue offering an unlimited data plan with the phone rather than moving to a tiered data option. Sprint’s possible activities concerning its own iPhone release may indicate that the AT&T/T-Mobile merger is actually good for innovation and competition as a few commentators have indicated. However, Sprint’s actions this week at least indicate the company is prepared to go down fighting in both the legal and market share arenas.