Leap Wireless (LEAP) Voices Opposition to AT&T/T-Mobile Merger (T) (S)
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Leap Wireless (Nasdaq: LEAP) is joining Sprint Nextel (NYSE: S) in the opposition of AT&T's (NYSE: T) proposed acquisition of T-Mobile from Deutsche Telekom (OTC: DTEGY).
"The acquisition would harm consumers," Leap commented. "It would reduce competition and decrease innovation and investment in the wireless industry. It would also accelerate the trend of alarming concentration of wireless providers and would eliminate T-Mobile as a competitive force that helps balance the increasing power of the largest carriers."
Leap also argued a duopoly would result from the acquisition, with AT&T and Verizon (NYSE: VZ) making up more than 80 percent of the wireless market.
CEO Doug Hutcheson said, "The proposed acquisition would eliminate T-Mobile as an important nationwide competitor in the industry. It also raises problems of spectrum concentration and impaired access to spectrum by competitive carriers; undercuts access to wholesale voice and data roaming services; and threatens to foster reduced device availability and reduced interoperability of wireless networks and devices, among many other issues."
The comments echo those from Sprint, which said that it may be forced to sell should the deal go though.
Leap shares are down about 0.3 percent Tuesday morning.
"The acquisition would harm consumers," Leap commented. "It would reduce competition and decrease innovation and investment in the wireless industry. It would also accelerate the trend of alarming concentration of wireless providers and would eliminate T-Mobile as a competitive force that helps balance the increasing power of the largest carriers."
Leap also argued a duopoly would result from the acquisition, with AT&T and Verizon (NYSE: VZ) making up more than 80 percent of the wireless market.
CEO Doug Hutcheson said, "The proposed acquisition would eliminate T-Mobile as an important nationwide competitor in the industry. It also raises problems of spectrum concentration and impaired access to spectrum by competitive carriers; undercuts access to wholesale voice and data roaming services; and threatens to foster reduced device availability and reduced interoperability of wireless networks and devices, among many other issues."
The comments echo those from Sprint, which said that it may be forced to sell should the deal go though.
Leap shares are down about 0.3 percent Tuesday morning.
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