Sprint CEO Dan Hesse told an audience at an industry conference that a combined AT&T/T-Mobile would have "tremendous" power and the two largest wireless carrier would control 79% of the U.S. wireless market, if the merger was approved.
AT&T responded to Hesse's remarks and noted that it would happily address his concerns. It is widely believed that AT&T expected resistance in regards to its purchase of T-Mobile, so we can reasonably assume that the company has plenty of arguments prepared why a 130 million-customer strong carrier is actually a benefit for Sprint and everyone else. AT&T also said that it should be clear to policy makers that AT&T's competition may not like to see AT&T and T-Mobile merge, but that would not be reason enough to deny regulatory approval.
Hesse said that Sprint will be filing its documents to Congress for review. It appears that Sprints key argument will be that the merger could stifle innovation as AT&T and T-Mobile would consolidate too much power in the wireless market.