Sprint Fights Back

by: Ari Zoldan posted on: August 08, 2008 | about stocks: CLWR / S / T    
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AT&T's (NYSE: T) Apple iPhone and Sprint's (NYSE:S) Instinct touch phone is not the only rivalry brewing between these two foremost cellular networks.

AT&T has been bullying Sprint for a long time now, trying to prevent the Sprint and Clearwire (NASDAQ:CLWR) union from merging both of their assets in order to create a nationwide broadband wireless network.

The only difference is that this time, Sprint is fighting back.

Sprint recently filed a response, declaring that "The New Clearwire transaction presents an unparalleled opportunity to accelerate broadband deployment in the United States," Sprint declared.

Furthermore Sprint has addressed AT&T's false claims against the WiMax wireless network. They stated that only three parties objected to the Sprint and Clearwire transaction or anticipated conditions. According to Sprint, "Their claims lack merit and provide no basis for denying, delaying, or imposing conditions on the approval of the New Clearwire license transfers," Sprint stated.

This 59-page document is full of proofs against the erroneous claims being brought by AT&T, in essence Sprint has put on their gloves and is fighting back to preserve their right to launch their powerful broadband wireless network.

Hundreds of religious and educational institutions have rallied behind Sprint and Clearwire, now Intel (NASDAQ:INTC), Google (NASDAQ:GOOG), Comcast (NASDAQ:CMCSA) and Time Warner (NYSE:TWX) are not alone. They all realize the importance of a WiMax wireless network and the great opportunities that could arise as a result. According so Scott Sloat, a Sprint representative, "The transaction poses no competitive concerns, and the public interest strongly weighs in favor of quick Commission approval."

It is interesting to note that as of now AT&T is one of the largest telecommunications company in the world. Hopefully, the commission will reject their unadorned complaints and see them for what they are; an attempt to distort the public's view of a powerful broadband wireless network for their own ruthless self-interests.

Disclosure: Long S, T, CLWR and AAPL

This article has 9 comments! Add yours below...

Ari Zoldan

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This article has 9 comments:

  •  
    Jason98758
    Aug 08 10:32 AM
    This is a classic case of AT&T using the regulatory process to thwart a competitor. WiMax will enjoy a first-to-market advantage of two to three years and includes a coalition including members of the open network movement, which VZ and T will minimize at any and all opportunities. AT&T also fears mobile VoIP applications eating into their voice business. WiMax isn't a dream, it's a reality in many parts of the world and it will be a reality in America in 2008 when Sprint launches their initial markets.
  •  
    Geddy
    Aug 08 10:41 AM
    "Mobile" WiMax is still a dream. All the multiple countries everyone keeps referring to using WiMax use nothing like a national basis that Sprint/Clearwire propose...as well as being fixed WiMax systems. This whole "first to market" claim I'm still curious to see pan out since the plan now is not to launch any markets (Sprint or Clearwire) until 2009 in which by then LTE will be attempted in clusters by AT&T and Verizon assuredly. And you can darn well bet that when they launch it, it will be full bore & none of this nit-picky one at a time type launch WiMax will be enjoying.

    I'd be more worried about keeping my customers (i.e.-Sprint hemorraghing customers to no end) or keeping my customers happy (i.e.-Clearwire having an entire website dedicated to them by unhappy customers/clearwiresucks.com/blo.../) than to start off on some adventure.
  •  
    PrudentMan
    Aug 08 11:31 AM
    We were better off when T was busted up. This Congress sells itself to the highest bidder.

    Time for Congressional Term Limits so that we can have more political and business competition and presurve the Free Enterprise System from predatory capitalism.
  •  
    BeltonMan
    Aug 08 12:22 PM
    Sprint handed the WiMax operation off to Clearwire so Sprint could focus their attention on their core wireless business. And, show me a company that DOESN'T have an sucks.com website dedicated to them.
  •  
    Geddy
    Aug 08 02:43 PM
    I don't know BeltonMan, you show us. Yes, EVERY company has disgruntled customers but I believe most of the other carriers have no more than a 2% churn rate & not double digits like Clearwire. I have not seen entire websites dedicated FROM disgruntled customers as Clearwire has. Too funny!
  •  
    Field Tech
    Aug 09 10:52 AM
    Sprint Nextel is working very hard to make sure they retain and add new customers. As a field operations technician I know that my team work very hard to make sure we have the best network available and we’ve shown that with our networks (CDMA and iDEN) are operating at best ever levels. Our customers have been neglected in the past due to customer service issues and Dan Hesse is addressing that problem so when some one says Sprint Nextel needs to be more worried about keeping its customers you can be well assured that we are and that should be evident with the fact that bringing WiMax to market is a direct relation to that statement and making sure our customers choose Sprint Nextel for their carrier because we are innovation at its best.
  •  
    then tell
    me why
    Aug 09 12:36 PM
    two of your employees stole my I.D. from the customer database and opened three credit cards in my name? i have repeadtly contacted sprint about this and have gotten ZERO response. If that is innovation at it's best you can keep it.
  •  
    Geddy
    Aug 11 02:25 PM
    Aahh, yet another satisfied Sprint customer (see above)!
  •  
    COCOViper
    Aug 11 04:50 PM
    RE: then tell me why

    I work for Sprint and I'd certainly be willing to try to help you out. Email me at david.schmuck@sprint.c... and I'll do my best!
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