U.S. District Judge Ellen Huvelle has agreed to allow Sprint and C-Spire (formerly Cellular South) to go forward with their joint lawsuit against the AT&T and T-Mobile merger. C-Spire is claiming the merger would have a negative effect on their roaming services.

Sprint on the other hand found the majority of their claims thrown out. Judge Huvelle was not buying their claims that an AT&T and T-Mobile merger would hurt the market for wireless airwaves needed to serve customers and network development. Huvelle also threw out Sprint’s claims that AT&T-Mobile would hurt the market for backhaul services, core network and remote locations.

Sprint’s vice president of litigation Susan Haller said a statement:

“Along with the Justice Department and a bi-partisan group of Attorneys General from seven states and Puerto Rico, Sprint has concluded that the transaction would give AT&T the ability to raise prices, thwart competition, stymie innovation, diminish service quality and stifle choice for millions of American consumers. We are pleased that the Court has given us the chance to continue fighting to preserve competition on behalf of consumers and the wireless industry.”

C-Spire’s VP of Strategic & Government Relations Eric Graham said:

“The Court’s ruling today will ensure that all parties harmed by AT&T’s proposed takeover of T-Mobile will have the benefit of a fair hearing. C Spire is pleased that it will have the opportunity to continue its fight for American consumers, and for the principles of competition and innovation that should drive the wireless industry.”

What did AT&T have to say about all of this? Well, they didn’t sound too pleased with the ruling with AT&T Senior Executive VP and General Counsel Wayne Watts saying:

“We are pleased with the ruling that dismisses the vast majority of the claims of Sprint and CellSouth. We believe the limited, minor claims they have left are entirely without merit.”

AT&T-Mobile now has to fight a war on two fronts with the government attempting to block the merger and now a joint suit from Sprint and C-Spire. Sprint’s strategy against the merger hasn’t exactly been the smartest leaving most of the work up to antitrust enforcers who tend to protect consumers, rather than competitors.

A hearing for the case has been scheduled for December 9th. My vote? T-Mobile stays exactly where they are right now. America needs options.

[Via Reuters]