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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.