Sprint And Clearwire Say Imposing Regulations On Merger Would Hamper Abilty to Compete


During Sprint’s (NYSE: S) second-quarter conference call today, CEO Dan Hesse said that its WiMax merger with Clearwire (NSDQ: CLWR) was on schedule to close by the end of the year, but it still clearly has to work to do. This week, Sprint Nextel and Clearwire protested the objections of AT&T and others, saying that if regulators call for new conditions of the merger, the ability to compete against the largest U.S. wireless carriers would be hampered, reported Dow Jones. In comments filed with the FCC, three companies opposed the merger — AT&T, Vonage and Rural Cellular Association — but more than 100 supported the deal. AT&T wants there to be more scrutiny in deciding whether the merger should be approved, and claimed that the two companies were misrepresenting the airwaves they intend to use for their internet service. The Rural Cellular Association wants roaming guarantees, while Vonage wants the merged company to have to offer separate voice and Internet services.

Dow Jones (NYSE: NWS) wrote that in Sprint and Clearwire’s response to the complaints, most of their attention was directed at AT&T (NYSE: T). The two countered that Clearwire would “become a new, viable broadband competitor, offering consumers greater choice in service providers, broadband technology, and innovative services and applications.”

Comments are closed.