Sprint Files FCC Petition to Block AT&T, T-Mobil Merger; Shares Down

Sprint Nextel Corp. (NYSE:S) is off more than 1% in mid-morning trading after it filed a petition with federal regulators to block a merger between AT&T Inc. (NYSE:T) and T-Mobile USA. At issue, according to the petition, filed with the Federal Communications Commission is control over T-Mobile's U.S. spectrum licenses, over which phone signals are transmitted. The company said the merger would leave AT&T and Verizon Wireless with more than 80% control of the wireless market. Sprint also asked for a broader ban on the merger, arguing that it would lead to higher prices, harm the public interest and reverse government policy to encourage competition.