AT&T asks FCC to block Sprint-Nextel's merger with Clearwire

AT&T is apparently so worried that Sprint-Nextel's merger with Clearwire will cause it some mobile broadband competition, it has asked the FCC to block it.

The deal will see Sprint-Nextel merging both companies' Wimax assets to create a nationwide broadband wireless network. The $14.5 billion deal is being backed by cable operators Comcast and Time Warner, as well as Intel and Google.

According to CNET, AT&T has filed a petition with the Federal Communications Commission, asking it to deny approval of the merger.

AT&T claims the two companies intend to provide competition against it but at no time did the pair ever tell the FCC that when they asked for permission to merge. We guess that AT&T thinks the FCC believes such mergers are done for the sake of it.

It is also likely that AT&T is more worried that the merged company will beat it to the the punch on providing super-fast mobile broadband speeds.

AT&T is betting on Long Term Evolution, or LTE, which is tipped to replace Wimax in the long term.

Unfortunately, that does not stop AT&T losing shedloads of business to Wimax traffic in the short term. µ

L'Inq
CNET