In a weird twist, some experts are saying that recent reports that Sprint Nextel (NYSE:S) will begin selling the Apple (NASDAQ:AAPL) iPhone 5 this fall may actually weaken the company's argument against AT&T's (NYSE:T) proposed $39 billion acquisition of T-Mobile USA.
Sprint, which has been a vehement opponent to the deal, has argued that the U.S. wireless market is dominated by Verizon and AT&T and that, as a result, Sprint is often prevented from getting the best wireless handsets. If Sprint lands the iPhone, that could impact the company's anti-merger position. Keith Hylton, a professor at Boston University's School of Law, told CNNMoney: "If you have the iPhone, it becomes hard to argue that you're locked out of the best handsets."
Sprint declined to comment on how the iPhone 5 could affect its argument against AT&T (Sprint has also declined to comment on whether it will sell the iPhone).
AT&T has said repeatedly argued there is plenty of competition in the U.S. wireless market.
Earlier this week the Wall Street Journal reported that Sprint will begin selling the iPhone 5 in mid-October. The report, which cited unnamed sources familiar with the matter, also said Sprint will sell the iPhone 4 at the same time it starts selling the iPhone 5. Landing the iPhone 5 as well as the iPhone 4 could help Sprint both reduce churn and attract subscribers. If Sprint keeps its $79.99 unlimited smartphone data plan, the carrier also could have a major leg up on Verizon and AT&T, both of which have discontinued their unlimited data plans in favor of tiered data plans. (Verizon launched the iPhone with unlimited data, and subsequently introduced tiered data pricing.)
For more:
- see this CNNMoney article
Related Articles:
Report: Sprint to get iPhone 5 in October
FCC to AT&T: We want more details on T-Mobile deal
AT&T to spend $8B on LTE expansion after T-Mobile deal
RCA, Consumers Union blast AT&T/T-Mobile transaction in congressional appearance
AT&T execs hit the road in defense of T-Mobile deal
Collapse of T-Mobile deal would cost AT&T $6B
Deutsche Telekom chief sees AT&T/T-Mobile deal closing next year
AT&T, Sprint spar over T-Mobile deal at congressional hearing