Judge Oks Sprint’s Lawsuit Against AT&T

A judge in the U.S. on Wednesday gave the go ahead to parts of C Spire Wireless and Sprint Nextel’s lawsuits against AT&T’s proposed US$39 billion acquisition of T-Mobile USA.

AT&T and T-Mobile had moved for dismissal of the lawsuits arguing that the complaints by Sprint and C Spire, formerly Cellular South, failed to adequately substantiate that the merger would cause them “antitrust injury”.

The decision by District Judge Ellen Segal Huvelle of the United States District Court for the District of Columbia could complicate AT&T’s defense of the deal which has been already opposed by the U.S. government.

The U.S. Department of Justice filed a lawsuit in August to block AT&T from acquiring T-Mobile, saying that the deal would significantly reduce competition, increase prices and stifle innovation. Seven state attorneys general have joined the lawsuit. That case goes on trial in February before Judge Huvelle.

Where private plaintiffs have successfully pleaded antitrust injury, the fact that they are defendants’ competitors is no bar, Judge Huvelle said before allowing Sprint and C Spire to proceed with their claim that the merger would make it difficult for them to acquire wireless devices. The companies had claimed that after the merger AT&T and Verizon would be in a better position to get exclusive handset deals, while foreclosing their access to the most innovative handsets and raise their costs.

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Sprint Sues To Stop AT&T-T-Mobile merger

Sprint on Tuesday announced it has initiated a lawsuit against AT&T and Deutsche Telekom to block the two companies from merging “as a violation of Section 7 of the Clayton Act.” Section 7 of the Clayton Antitrust Act bars any person from acquiring “the whole or any part of the stock or other share capital” that would “substantially … lessen competition, or to tend to create a monopoly.” In its suit, Sprint argues that the proposed merger would violate this act because it would lead to AT&T and Verizon’s controlling 75% of the wireless market while taking in 90% of the profits.

Sprint’s antitrust suit comes less than a week after the U.S. Department of Justice filed an antitrust suit against the merger with the U.S. District Court for the District of Columbia. In its suit, the DOJ similarly argued that the proposed merger would significantly damage competition in the wireless industry, especially since T-Mobile has historically offered low-cost wireless voice and data services for customers. The DOJ also contended that any efficiencies gained by combining AT&T and T-Mobile spectrum would not be enough to offset the damage done to U.S. consumers by further consolidation of the wireless industry.

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Sprint To Be The First To Offer Galaxy S II

Sprint will be the first U.S. mobile carrier to offer Samsung’s Galaxy S II, starting Sept. 16, but T-Mobile and AT&T said Tuesday they also will sell the phone.

A follow-on to the popular Galaxy S, the phone will be the thinnest available at all three operators.

The largest mobile carrier in the U.S., Verizon Wireless, notably has decided not to sell the phone. Verizon recently said it already has an extensive portfolio of Android phones and so would not offer the Galaxy S II.

All models of the Galaxy S II will work on the 4G networks of the respective operators and will run Android 2.3, or Gingerbread. The phone will have a 4.3-inch Super Amoled Plus display, which uses technology developed by Samsung. It will have an 8-megapixel rear camera, plus a 2-megapixel front-facing camera for video conferencing.

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T-Mobile Will Offer Unlimited Data Plans

Wireless telecom firm T-Mobile USA said it will begin offering unlimited data service plans, in a move aimed at snagging customers of bigger rivals Verizon Wireless and AT&T Inc which have discontinued offering such plans.

T-mobile, a unit of Deutsche Telekom AG, said the new plans will become available from July 24. The unlimited plans will be available with a two-year agreement for new and existing customers.

Verizon Wireless, the biggest U.S. mobile provider, said earlier in July it will stop offering unlimited data service plans, meaning higher prices for heavy users of services such as mobile Web surfing.

AT&T had stopped offering unlimited data services last year.

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States Subpoena Sprint

Sprint Nextel has been subpoenaed by nine states in connection with antitrust reviews of AT&T’s proposed $39 billion purchase of T-Mobile USA, according to information Sprint posted on the Federal Communications Commission (FCC) website.

In a letter dated June 28 to FCC, Sprint said it had received subpoenas and civil investigation demands from attorneys general in the states of Arizona, Florida, Hawaii, Illinois, Minnesota, New York, Pennsylvania, Texas and Washington, as well as from the Antitrust Division of the U.S. Department of Justice.

Sprint, the No.3 U.S. mobile service, is opposing AT&T’s proposed $39 billion purchase of No.4 U.S. mobile service T-Mobile USA, a Deutsche Telekom AG unit, on the grounds it will give too much competitive power to one company.

Sprint said in its letter that the states have asked the company to provide all the materials it had submitted to FCC regarding AT&T’s deal.

Meanwhile, an AT&T spokesman told Bloomberg that his company had also received subpoenas from the same nine states regarding its proposed T-Mobile transaction.

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Verizon Adds LTE Network To More U.S. Cities

Verizon Wireless announced 19 more cities that will get its faster 4G wireless network service starting Thursday, bringing the total to 74 metropolitan areas.

San Francisco and Detroit, already on Verizon LTE since last December, will also see the existing LTE network in those cities expanded, Verizon said in a statement.

The new 19 LTE cities include several state capitals such as Sacramento, Calif., Hartford, Conn., Boise, Idaho, Harrisburg, Pa., Indianapolis, Ind., Salt Lake City (with Ogden), Utah; and Madison (with Milwaukee), Wis. The full list of cities is on Verizon’s website.

This news comes as competitor AT&T is scheduled to launch LTE 4G service in five cities in the U.S. this summer: Atlanta, Chicago, Dallas, Houston and San Antonio.

Rumors have also surfaced that Sprint will begin adding LTE service to its existing nationwide WiMax 4G capability, partly to support a future LTE-ready iPhone, although Sprint has not confirmed those reports.

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EBS Coming To Your Smartphone

In the event of local and/or nationwide disasters, wireless carriers will soon begin alerting the public by sending emergency SMS text messages to mobile phones.

AT&T, Sprint, T-Mobile and Verizon Wireless have all agreed to a participate in this new Emergency Broadcast System alert method. It  will initially be rolled  out in New York and Washington, D.C., later this year, and nationwide next year, in April at the earliest.

The emergency text messages will cover public safety threats, Amber Alerts for missing children, and messages from the president, the New York Times reports. Messages will be free for customers, who can opt out of them all except the presidential messages.

We don’t expect the alerts to be frequent,” Julius Genachowski, chairman of the Federal Communications Commission, told the Times. “They will be reserved for when they are truly needed, for tornadoes or for disasters like 9/11.”

Genachowski said the emergency texts will look different from ordinary messages, making them more difficult for hackers to infiltrate or fake. They’ll probably appear directly on the screen, along with a special vibration or other signal. No word on how closely they’ll resemble the tone and color bars of the current Emergency Broadcast System for televisions, or whether users can expect “this is a test” messages on a regular basis.

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iPhone Gaining on Nokia’s Dominance

Apple’s iPhone is moving closer and closer  to Nokia’s top spot in smartphones globally, according to first-quarter 2011 results reported by IDC on Thursday.

With the iPhone in the second spot, BlackBerry maker Research In Motion dropped to third after finishing second a year ago, IDC said. 99.6 million smartphones shipped in the first quarter, out of 372 million mobile phones overall.

Nokia sold 24.2 million smartphones in the first quarter, holding on to its global smartphone lead despite announcing that it will move from Symbian to Windows Phone as its main smartphone operating system in next few years, IDC said. Nokia “may find itself in danger of ceding market share as the competition ramps up,” IDC said.

Apple shipped 18.7 million iPhones in the first quarter, IDC said, a new record for a single quarter, “and inched closer to market leader Nokia, with fewer than 6 million units separating the two companies,” IDC noted.

Apple also had triple-digit growth in the U.S., with the Verizon Wireless CDMA iPhone 4, and in greater China.

RIM, while down from second place where it was a year ago, remained in third place from the fourth quarter of 2010. The majority of RIM’s shipments are older, lower-cost devices, IDC noted, a trend that will continue in the second quarter.

Samsung finished fourth in smartphones for the first quarter, with 10.8 million smartphones shipped, while HTC finished fifth, with 8.9 million shipped.

Samsung grew the most of any vendor for the first quarter — 350% year-over-year. Samsung has a multiple-OS strategy and sells mostly Android smartphones, including Galaxy S phones, as well as Windows Phone 7 and Wave devices.

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NY To Investigate AT&T’s T-Mobile Acquisition

The state of New York  has indicated that it will investigate AT&T’s proposed take over of T-Mobile USA for anti-competitive effects, including possible increases in mobile broadband costs for New York residents and businesses, Attorney General Eric Schneiderman said.

New York is the first state that has committed itself to probing the $39 billion deal, which was announced on March 20 but is expected to take 12 months to close. At their current sizes, the combined telecom companies would have 130 million subscribers, dwarfing the next-biggest operator, Verizon Wireless, with 93 million. In a press release on Tuesday, the attorney general’s office raised the possibility of Verizon responding with an acquisition of Sprint Nextel, which has about 58 million subscribers.

“The proposed merger could start a process of consolidation that would lead to two firms -AT&T and Verizon – controlling nearly 80% of wireless subscribers nationwide,” Schneiderman stated.

Schneiderman said mobile service has changed from a luxury to a basic necessity and T-Mobile currently is a low-cost option for many New York residents. People in some areas, including Albany, Rochester, Buffalo and Syracuse, already have limited wireless choices, he said.

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