Sprint Nextel Urges Block of AT&T Bid To Buy T-Mobile USA (S, T)

Sprint Nextel (NYSE: S) urged regulators to block AT&T's (NYSE: T) bid to buy Deutsche Telekom AG's T-Mobile USA. According to Reuters, Sprint Nextel said the merger would harm consumers.

Sprint is the number three U.S. mobile carrier and has faced tough competition from AT&T and Verizon Wireless (NYSE: VZ).

AT&T said the deal would concentrate 80 percent of U.S. wireless contract customers into AT&T/T-Mobile and Verizon.

AT&T said the merger would spur innovation and economic growth by improving quality and expanding service to 95 percent of the U.S. population.

The U.S. Federal Communications Commission and Justice Department are expected to take a year to review the proposed merger, and if the merger is approved, significant conditions would be imposed.

Consumer and antitrust groups have also been critical of AT&T's proposed transaction.