While telecommunications sector exchange traded funds (ETFs) remain depressed along with the rest of the market, Sprint Nextel Corp (NYSE: S) has surprisingly gained around 0.5% in today’s trading as the company tries to promote greater competition within the market.
- iShares Dow Jones U.S. Telecommunications Sector Index Fund (NYSEArca: IYZ) is down 1.09%.
- Vanguard Telecommunication Services ETF (NYSEArca: VOX) is down 1.38%.
Sprint has filed with the Federal Communications Commission to block a merger between AT&T Inc. (NYSE: T) and T-Mobile USA, according to The Business Journal.
Critics of the proposed merger contend that the acquisition would be against the public interest since it would result in a scenario where AT&T and Verizon Wireless (NYSE: VZ) controls over 80% of total wireless market share.
Sprint specifically argues that the merger would result in higher consumer prices.
“We can choose the open, competitive road best traveled and protect American consumers, innovation and our economy,” said Vonya McCann, senior vice president of Sprint government affairs, “or we can choose the dead end that merely protects only AT&T and leads the rest of us back down the dirt road to Ma Bell.”
However, in a statement on Tuesday, an AT&T spokeswoman remarked that they anticipate “additional support for the transaction from more voices who recognize the tremendous benefits for the economy, innovation and public policy associated with bringing high-speed wireless broadband deployment to more than 97 percent of the U.S. population — nearly 55 million more Americans than our pre-merger plans — and improving call quality and network performance for consumers.”
For more information on the telecom sector, visit our telecommunications category.
Max Chen contributed to this article.