Sprint, C-Spire call temporary cease-fire on AT&T

Similar to the Justice Department lawsuit, both sides are agreeing to delay the lawsuit until AT&T has a chance to go back and evaluate its options.

Sprint Nextel and C-Spire today agreed with AT&T to hold off on their lawsuit until AT&T has a chance to re-evaluate its options, following similar steps taken by the Department of Justice yesterday .

Sprint and the regional wireless carrier have sued to block AT&T's proposed acquisition of T-Mobile USA, drafting behind the larger--and more relevant--Justice Department lawsuit. But with AT&T reconsidering its strategy, Sprint and C-Spire have agreed to a delay until January 18.

The actions kicked off on Thanksgiving, when AT&T withdrew its merger application from the Federal Communications Commission . Last week, the Justice Department argued that it should hold off on its own case , arguing that a case built against the current deal may not be relevant, if AT&T changes the details of the deal when it goes back to the FCC.

Likewise, Sprint and C-Spire are holding off until they get more clarity on the status of the deal.

AT&T has to submit a status report on its proposed deal by January 12.

The Dallas-based telecommunications giant has been struggling to save this deal, which seems to have drawn a number of strong opponents, from competitors in the industry to regulators.

About the author

Roger Cheng is the executive editor in charge of breaking news for CNET News. Prior to this, he was on the telecommunications beat and wrote for Dow Jones Newswires and The Wall Street Journal for nearly a decade. He's a devoted Trojan alum and Los Angeles Lakers fan.

 

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