Sprint CEO Speaks Out About AT&T – T-Mobile Merger
Sprint CEO Speaks Out About AT&T – T-Mobile
Merger
AT&T's $39 billion bid for T-Mobile this week caught the American public by surprise, but also shocked many industry insiders. Count Sprint CEO Dan Hesse as one of those who did not see the move coming, as he explained to CNBC's Jim Cramer in an interview aired Tuesday. “That one was not on the radar screen,” Hesse said, explaining that he didn't think the deal would go through because of antitrust issues.
Hesse is predictably opposed to the deal as it would make Sprint a very-distant third behind AT&T and Verizon in the American wireless service market. AT&T would have more than 100 million subscribers after absorbing T-Mobile, joining Verizon, who already has that many, while Sprint would fall way behind with its 50 million customers. Hesse is already talking about expressing his reservations to the deal to Congress, and appeared on CNBC”s “Mad Money” to practice those arguments.
In the appearance, Hesse outlined for Cramer the threat of what he referred to as a “duopoly situation.” “If this transaction goes through you’re talking 79 percent, or roughly 80 percent of the market controlled by two companies. I think that’s a little too much–too much concentration,” Hesse explained.
AT&T officials, meanwhile, argue that the two companies' combined share will not be as concentrated in most local markets, and say that the merger would benefit the country because the new conglomerate would pump billions of dollars into the economy spreading mobile broadband across the nation.
AT&T's $39 billion bid for T-Mobile this week caught the American public by surprise, but also shocked many industry insiders. Count Sprint CEO Dan Hesse as one of those who did not see the move coming, as he explained to CNBC's Jim Cramer in an interview aired Tuesday. “That one was not on the radar screen,” Hesse said, explaining that he didn't think the deal would go through because of antitrust issues.
Hesse is predictably opposed to the deal as it would make Sprint a very-distant third behind AT&T and Verizon in the American wireless service market. AT&T would have more than 100 million subscribers after absorbing T-Mobile, joining Verizon, who already has that many, while Sprint would fall way behind with its 50 million customers. Hesse is already talking about expressing his reservations to the deal to Congress, and appeared on CNBC”s “Mad Money” to practice those arguments.
In the appearance, Hesse outlined for Cramer the threat of what he referred to as a “duopoly situation.” “If this transaction goes through you’re talking 79 percent, or roughly 80 percent of the market controlled by two companies. I think that’s a little too much–too much concentration,” Hesse explained.
AT&T officials, meanwhile, argue that the two companies' combined share will not be as concentrated in most local markets, and say that the merger would benefit the country because the new conglomerate would pump billions of dollars into the economy spreading mobile broadband across the nation.
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