Looks like the judge in the Sprint vs. AT&T lawsuit has some doubts about Sprint’s standing in the case:

Sprint Nextel lost a bid on Monday to get access to masses of AT&T documents that it had hoped to use in its lawsuit aimed at stopping AT&T’s $39 billion acquisition of discount rival T-Mobile.

…

Huvelle, who is hearing both the private antitrust case and the U.S. Justice Department’s lawsuit to stop the deal, challenged Sprint’s standing at least once during the hearing.

“You don’t stand in the shoes of the consumer or the Department of Justice,” she said.

A setback, definitely.

Looks like AT&T thinks that it just needs to sell a few tiny assets and the DoJ will be all okay with the T-Mobile deal. And MetroPCS seems to be the lucky winner:

MetroPCS Communications Inc. (PCS) has emerged as the frontrunner to buy assets from AT&T Inc. (T) and T- Mobile USA Inc. as those companies seek to win government approval for their $39 billion merger, according to people familiar with the matter.

Though the size of the deal isn’t yet definite, it would likely include subscribers and wireless spectrum, said the people, who couldn’t be identified because the talks aren’t yet public. The deal’s value is likely to be less than $4 billion, said one person.

Somehow I think $4 billion isn’t really enough here.

AT&T moved to have Sprint’s lawsuit against it dismissed. Its reasoning?

…the two providers represent their own interests, rather than that of the public. AT&T further reveals that C Spire had pursued private negotiations prior to the lawsuit, where the regional provider agreed to support the merger “if AT&T would agree not to engage in facilities-based competition in Mississippi.” Ma Bell goes on to state, “This inappropriate proposal confirms that what Cellular South fears is competition, not lack of competition.”

Projecting, eh guys?