T-Mobile’s rumored bid to acquire Sprint Nextel would be a ‘diffe...

parent Deutsche Telekom is reportedly preparing a bid for Sprint (CD Sept 15 p4). Historically, most acquisitions have been about expanding a company’s footprint into new territory, he said. But Sprint and T-Mobile are both nationwide carriers, so many consumers would lose a competitor in their market if they merged, Altschul said. The deal might face less resistance if newer entrants like MetroPCS and Leap Wireless continue to grow, Altschul said. “Going from five firms in a market to four might not be as troubling as going from four firms in a market to three.” Wireless consolidation has been beneficial to consumers because it has enabled carriers to go nationwide, eliminating roaming charges and reducing no- service areas, said attorney Donald Russell of Robbins, Russell, who worked in the Justice antitrust division from 1977 to 2001. Antitrust regulators tend to be favorable to telecom deals that expand carriers’ footprints, and against deals that eliminate a competitor, he said. A Sprint/T- Mobile merger likely would “attract a lot of attention and could well run into opposition at the Justice Department,” and “any number of conditions -- if nothing more - at the FCC,” he said. On mergers generally, Altschul and Russell said to expect a somewhat more aggressive Justice Department and Federal Trade Commission (FTC). However, Russell said Justice likely won’t be dramatically different than it was under President Bill Clinton, since many of the new department’s officials worked under that administration, he said. The FTC and Justice may take a more active advocacy role than before, Altschul said. He cited as first evidence the substantive FTC comment filed earlier this month in the FCC’s broadband plan proceeding (CD Sept 8 p5).