AT&T threatens WiMax joint venture

AT&T is looking to put a kibosh on the proposed merger of Sprint Nextel's nationwide WiMax assets with those of Clearwire.

On Thursday, the nation's largest phone company filed a petition with the Federal Communications Commission, asking it to deny approval of the merger.

Sprint Nextel announced in May that it was teaming up with Clearwire to form a new joint venture that would combine both companies' WiMax assets to create a nationwide broadband wireless network. The deal, which has been valued at about $14.5 billion, is being backed by cable operators Comcast and Time Warner, as well as Intel and Google.

The FCC, which is currently reviewing the merger, must give its blessing for the deal to be completed.

In its filing, AT&T argues that the proposed merger, "openly state[s] that they (Sprint Nextel and Clearwire) intend to compete with other national wireless providers--including AT&T--yet they fail to make the required showings necessary for the commission's review."

It's funny that AT&T is putting up any kind of stink to the merger, considering that the company exists in its current state only because of several massive mergers in the past few years, including the multibillion dollar merger between AT&T and BellSouth, which put full ownership of the wireless operator under one owner, and the purchase of wireless assets from rural operator Dobson Communications last year.

But it's clear that AT&T is nervous about the new Clearwire's plans. AT&T is currently still deploying 3G technology throughout its territory and is busy upgrading its existing network. But it is years away from taking the next big leap toward building a 4G network, which will use a competing technology known as Long Term Evolution, or LTE. By contrast, WiMax technology is available and working today. And regardless of the outcome of the merger, Sprint expects to launch its first WiMax deployments in September. What's more, devices supporting WiMax have already been developed and will hit the market by year's end.

While analysts still aren't sure whether WiMax will survive in the long run as a mobile technology here in the U.S., it appears from AT&T's latest moves that it's at least a little bit scared that the new Clearwire network, with backing from heavyweights like Intel and Google, could get enough traction to threaten its current and future wireless business.

[gsmiller88]

The FCC is stupid if it sides with AT&T

[supoman]

AT&T needs to stop B-ing and moaning and get to upgrading their ragiddy network that is years behind everyone else and is just making it to 3g.

[travelscott]

AT&T is a big sponsor of this year's Democratic convention (their logo is prominent on the official 'convention bags'), so I would not rule anything out on this issue.

[kgsbca]

It sounds like ATT is saying "Sprint-Nextel wants to compete with us, and we don't want any competition, because if there is any, we will have to deliver something of value". I am sure the politicians who get a few grand each year from ATT will find a way to make AT's argument sound like they are doing something that will benefit everybody.

[bigguysi]

I switched to AT&T 5 years ago and couldn't have been happier... until this last year. As an iphone user, even I am getting tired of using AT&T. They keep raising their rates and don't want any competition. Thats why I didn't stand in line with the rest of the iphone 3g'ers (Not adding and additional $45 bucks to my plan for some corporate plan without texts). Hopefully apple won't be bound to AT&T forever and the Sprint-Clearwire merger will bring cheaper/better service to the industry (ie Verizon, and AT&T). Hopefully, we will even see WiMax in the iphones without the AT&T logo in the upper left-hand corner. I am sure the FCC will see the anti-competitiveness of AT&T. It's in their history.

[MadLyb]

Maybe AT&T would have to lower the ridiculous price on their data plans.

Wouldn't that just be terrible? 8^)

[gerrrg]

AT&T is simply sandbagging for LTE, which is years away. They're looking to block the tie-in because they know how powerful WiMax is, and have absolutely NO retort for it.

Let's not forget that AT&T participated in the unlawful violation of the Constitution.

[AppleSuxLeo]

ATT AND Steve Jobs...both now officially suck.

[Steve Charles]

AT&T is already in the WiMax game. Below is their advertisement headline and a link to their WiMax site.

Anchorage Only in select areas
AT&T Alascom High Speed Internet Service via WiMAX now available in Anchorage!
$19.95* a month

Hello Anchorage!

AT&T Alascom is proud to offer the latest in broadband technology to the Anchorage area.

http://www.attalascom.com/home/anchorage.html

[Steve Charles]

AT&T is already in the WiMax game. Below is their advertisement headline and a link to their WiMax site.

Anchorage Only in select areas
AT&T Alascom High Speed Internet Service via WiMAX now available in Anchorage!
$19.95* a month

Hello Anchorage!

AT&T Alascom is proud to offer the latest in broadband technology to the Anchorage area.

http://www.attalascom.com/home/anchorage.html

[JCPayne]

AT&T is not known for their intelligence any longer...

AT&T, let Sprint blow their money on it... If Sprint uses their same horrible customer service the project will be a failure...... And you can snap up the pieces in bankruptcy court.. . DUH!!!!

[JCPayne]

Besides. Apple's IPhone is what is tied to AT&T. Not Apple overall. Apple could launch a new phone as as long as they don't call it the "IPhone" or... use the same model number as the IPhone they could sell different model devices on the other providers.

E.g.
The T-i-Phone on T-Mobile
The V-i-Phone on Verizon
The S-i-Phone on Sprint (yuck!)

You get the idea..... Mobile phone companies have gotten around exclusive agreements for years just by creating slightly different phone names and slightly different model numbers in each offering for years. Apple could have done the same. If anyone was going to cry and whine I'm surprised it isn't Verizon Wireless... Verizon's footprint pales in comparison to AT&T's which controls all of SBCs old area plus Bellsouth and--- AT&T (Mom-Bell's) old national long distance company all under one roof. The only real large Verizon mergers in recent years is Alltel Wireless and- buying up the defunct assets of MCI Long distance phone company.... Other than that AT&T is times larger than Verizon and even Verizon doesn't cry and whine about it.

[Quemannn]

AT&T and VW are hoodwinking innocent American consumers in the name of LTE, which is yet to be born. While Asian and European cousins are quite close to 4G, AT&T and VW are hindering technological advances by affiliating with LTE, whose success is yet to verify in 2012. AT&T has such effrontery to destroy free competition of technology world by attempting to block such a consumer-friendly merger. There are rumors that LTE may be integrated into WiMAX a couple of years before it will be commercially launched. This is perhaps why AT&T and VW may have a second thought about LTE and try to get ahead of a pioneer like Clearwire in WiMAX arena by trying to find a good excuse to cut in line of seemingly lucrative WiMAX marekt. Besides, it appears Virgin USA and SKT may join forces with Sprint Nextel to accelerate WiMAX deployment since SKT is one of the two succesful mobile WiMAX operators outside USA. Two years from now will be a critical path for mobile technology worldwide until we see a sea change in the fast-evolving mobile technology and its fast-changing landscape.

[limefan913]

This tends to be what Sprint is good at: Leading the pack in technology. The only two good 3G networks in the US are Sprint and Verizon. When WiMax starts becoming available in my area, I'm quite likely to switch over to Sprint. Sorry, but as nice as 3G is, it's still too slow.

Go Sprint, go.

[SeizeCTRL]

oh no, not even the iPhone can save them from this level of stupidity.

[dwmreg]

How can consumers file a complaint about AT&T for this? I went shopping for wireless cellular data cards at Sprint and AT&T now both offer the same freakin' deal on this plan 5 GB at $60 a month. No alternatives. No options for casual use. Equipment prices and features was all that varied. The problem was no alternative to the $60. Consumers need options!!!!!!!!!!!! I'm tired of this and want AT&T to buzz off. Options FCC!!!! Give us options. Better pricing. Stop letting AT&T pillage!!!

[Zaunto]

HAH. AT&T is afraid of competition? GOOD. AT&T NEEDS competition. My 3G phone (which is not an iPhone) randomly switches from 3G to Edge to "G" while I'm sitting in my house and randomly drops calls. No bars. The only thing they have that others don't is roll over minutes. Since others besides Sprint/Nextel are backing the WiMax deal and AT&T has completed bigger mergers than this in recent years, their argument is weak. It would be great if Sprint/Nextel prospered at the expense of AT&T, especially considering that Apple refuses to widely deploy the iPhone on other US based networks.

[bkedersha]

So, Sprint haters, ready to come over to the Dark Side? Or do you want to be left behind?

[ebonyglider]

i kind of hope that ATT wins because sprint is the worst company anyone could ever think of dealing with.. and I'm sure they would lure people in with cheap plans and new 4G technology, and these poor people would be stuck in 2 year contracts where sprint is constantly adding fake charges to their bill and offering generally bad customer service. if it was any other company in the world it would be awesome, sprint is terrible and should be shut down.

[geekazine]

I commend AT&T for at least trying. You never know what can happen.

HOWEVER, I think it's a dumb move on AT&T's part. I can't wait for WiMax.