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Big ol’ AT&T and Sprint have been at it lately. It’s a bit of a mess, actually, and not the easiest issue to grasp, since neither company is supplying the specifics of their agreement. But the quick version is that AT&T agreed to certain roaming rates with Sprint when the former took over BellSouth in 2006. Sprint is taking a very liberal interpretation of this agreement, saying that “it can take any contract it, or one of its subsidiaries, had with AT&T or one of its operating units, and adopt it in any of the 22 states AT&T operates in.” That is, they can expand the original agreement. Of course, AT&T disagrees with that interpretation.

This is significant for AT&T, since a ruling in Sprint’s favor would decrease the money the latter pays to the former in roaming agreements. It’s clear that Sprint is trying to save a few bucks here, as they are losing money, and are betting they lose a bit more before all is said and done.

AT&T disagrees, saying that the merger condition was only intended to allow rival companies to cut down on the costs of negotiating new contracts in areas where business conditions are broadly similar.

After regulators in three states agreed at least in part with Sprint Nextel, AT&T turned to the Federal Communications Commission and asked it to issue a ruling to decide the matter.

It’s tough to predict how the FCC will rule on this one. The current regulations are scheduled to expire in June 2008.

[CNN Money]

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