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AT&T Could Owe Sprint Millions Thanks to Leap Contract

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johnhr2

Nov 12, 2013, 12:46 PM

AT&T helping the competition?

Okay is it just me or is AT&T finding ways to help fund the competition?

Cause 1): AT&T had to pay T-Mobile cash and give them Spectrum for the break up fee of their failed merger.

Cause 2): Now AT&T has to pay Sprint Millions if AT&T gets approval to buy Leap.

I know Sprint would have got this money eventually but now Sprint gets it all at once.

To me AT&T is secretly helping the smaller competition, although even if that was true they would never publicly admit it.
Maybe so, but I doubt its from the goodness of their hearts. Oddly Sprint who was vocal over the TMO merger, has been dead quiet on this. Wonder if their new masters at Softbank shut them up for some reason we have no idea about. BTW $120 million (...
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Don't forget...at the end of the day AT&T is eliminating a competitor. Verizon and AT&T's ultimate endgame is two carriers. They'll settle for four...for now.
crood

Nov 12, 2013, 3:06 PM

Transitions Take Time

Couldn't AT&T simply use the expiration date of the contract as their drop dead date for transitioning Leap customers? No need to pay Sprint in one lump sum if you're going to need to keep the MVNO agreement in place for some time.
Sure they could, and I'm sure that has crossed thier minds, or already factored this into their costs. Roaming can be profitable, too bad Sprints has little spectrum and technology overlap with AT&T or it could have continued for both companies.
 
 
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