Leap Wireless International, Inc. (San Diego, California), a provider of wireless communications services and its operating subsidiary, Cricket Communications, Inc., today announced their opposition to AT&T's proposed acquisition of T-Mobile USA, a nationwide competitor to AT&T and the nation's fourth largest wireless carrier.
According to a press release issued by Leap:
“The acquisition would harm consumers. 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. If the acquisition is permitted to occur, it would result in the domination of the wireless industry by two massive super-carriers, AT&T and Verizon, who together would control more than 80 percent of the wireless market. Regulators and lawmakers have long recognized that such concentration does not serve consumers. The historical policy of promoting competition in the wireless marketplace has produced tremendous benefits for consumers, including reduced services prices, broader availability of wireless services to all income levels and ethnic groups, and the development of new and enhanced service offerings, such as mobile broadband and unlimited services at fixed prices. That pro-competition policy should not be reversed.”
"We oppose the proposed acquisition. A competitive marketplace is critical to wireless innovation -- and small and mid-sized carriers such as Cricket are driving that innovation," said Doug Hutcheson, President and CEO of Leap and Cricket. "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. Those results are not in the public interest."