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AT&T and Sprint Trade Barbs Over T-Mobile Merger

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Apr 12, 2001
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Sprint CEO Dan Hesse has been a constant critic of the proposed AT&T/T-Mobile merger, hammering the deal as bad for competition and bad for consumers. However, Hesse said yesterday that he isn't an opponent of all telecom mergers, but believes that the Department of Justice would view an alternate merger pair -- such as T-Mobile and Sprint, perhaps -- very differently.
However, if such a hypothetical deal were reached, "You could make a very, very strong argument" that the antitrust regulators would approve it, Hesse said. He said the hypothetical combination of of two value players could allow a strong competitor to Verizon Wireless and AT&T.
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AT&T's head lobbyist, Jim Cicconi, AT&T Senior Executive Vice President, External and Legislative Affairs had harsh words for Hesse in response:
Yesterday, the CEO of Sprint said the Department of Justice should block AT&T from merging with T-Mobile, but would have good reasons to instead allow Sprint to purchase them. For months Sprint has spoken disingenuously about their motives for opposing AT&T's merger with T-Mobile. Now, Mr. Hesse's public musings have made their motives much more clear. That they would act in their own economic interest is not surprising. That they would expect the United States Government to be a willing partner certainly is.
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A federal judge set a mid-February 2012 trial date to hear the Department of Justice's arguments for blocking the merger, but denied Sprint's request to join the DoJ's suit.

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Dan Hesse and Sprint have a poor track record regarding large mergers. When Sprint and Nextel merged in 2005, the companies said the value of the merged company would be $70 billion. Today, Sprint's market cap is just over $9 billion.

Sprint's stock price is down more than 80% since Dan Hesse took over as CEO in December 2007.

Article Link: AT&T and Sprint Trade Barbs Over T-Mobile Merger
 
Article Link
https://www.macrumors.com/2011/09/22/att-and-sprint-trade-barbs-over-t-mobile-merger/
At least an AT&T / T-Mobile deal is good for AT&T. Unlike a Sprint / T-Mobile deal, which would be a disaster for Sprint, T-Mobile AND the consumer.

This is definitely the wrong sort of thing for Sprint to be blathering on about... They need to stick to the "bad for consumers" and "bad for competition" angles.
 
Any way you slice the AT&T+TMobile merger is bad for consumers. It creates a US monopoly in the national GSM space and wipes out a strong value player.
 
The basis of the DOJ challenging the deal is that it eliminates T-Mobile, gives users one less choice and also gets rid of a value priced carrier.

A Sprint-T-Mobile merger would do the same thing. One less choice for consumers, and a value priced carrier is eliminated. Then the succeeding company could raise their prices, not to that of AT&T and Verizon but still higher than they currently are.

Hesse's argument is a red herring. Whether it's AT&T or Sprint who is buying T-Mobile, there will be the same end result.

That being said, AT&T is a much better match. Sprint is still integrating Nextel. Adding a whole new technology to the mix would be a disaster.
 
you know somethings up when Verizon CEO tacitly approves of the AT&T/T-Mobile merger.

Can anyone say duopoly?

to anyone who seriously thinks the end user will benefit from a AT&T/T-Mobile merger is laughable. consumers will lose, and corporations and their top tiered executives will win.
 
Consultant said:
Appearantly Hesse is clueless about the differences of GSM and CDMA networks.
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It's okay. His predecessor was apparently clueless about the differences between CDMA and iDEN networks.

snowmoon said:
Any way you slice the AT&T+TMobile merger is bad for consumers. It creates a US monopoly in the national GSM space and wipes out a strong value player.
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A T-Mobile collapse would have the same effect.
 
wow, from 70B to 9B in a few years...there needs to some major cleanup at the at the BoD and exec levels.
 
Verizon should buy Sprint, AT&T get T-Mobile. Done deal.

You can only get Verizon, AT&T and Sprint in my area anyways, and Sprint's service is a joke here.

So really we only have two choices. Wouldn't change anything for me.
 
gr8whtd0pe said:
Verizon should buy Sprint, AT&T get T-Mobile. Done deal.

You can only get Verizon, AT&T and Sprint in my area anyways, and Sprint's service is a joke here.

So really we only have two choices. Wouldn't change anything for me.
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wait, so you want more of a monopoly in the carrier industry? are you serious? do you want to get screwed over with higher payments?

look, this whole merger deal isn't to make things easier for the consumer, its about corporate profits, and less options for the consumer. the sooner people realize this, the more folks will be wary of this merger.

thats just like saying: 'man, i just want android and iOS to dominate the mobile space. Windows Phone 7/Mango, WebOS, RIM, and the rest should go to hell.'
 
aohus said:
wait, so you want more of a monopoly in the carrier industry? are you serious? do you want to get screwed over with higher payments?

look, this whole merger deal isn't to make things easier for the consumer, its about corporate profits, and less options for the consumer. the sooner people realize this, the more folks will be wary of this merger.

thats just like saying: 'man, i just want android and iOS to dominate the mobile space. Windows Phone 7/Mango, WebOS, RIM, and the rest should go to hell.'
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I know what it is all about, I'm just saying that it will not matter in my area. Its not like I have a lot of choices. They all charge way to much as it is.

and I do agree with that quote lol :D
 
Why do people keep calling it a merger? Its a takeover. If you're a mid level manager at T-mobile then you should already be looking for a new job
 
powers74 said:
Nice corporate love-triangle going on here. Someone should make a movie.
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In a world where three cell phone companies are in love...

Data Prices are STILL ridiculous

Starring that guy from "The Social Network" as Sprint, Brett Favre as AT&T who just constantly teases to buy T-Mobile, and the "Can you hear me now?" guy as Verizon

On the internet in December 2012

*active 10gb data plan required
 
I would be interested in only two US carriers if they can then have the bargaining power to push around Apple more and force carrier branding on the front of the iPhone.
 
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aohus said:
you know somethings up when Verizon CEO tacitly approves of the AT&T/T-Mobile merger.

Can anyone say duopoly?

to anyone who seriously thinks the end user will benefit from a AT&T/T-Mobile merger is laughable. consumers will lose, and corporations and their top tiered executives will win.
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I completely agree. I kow these types of responses aren't contructive and ultimately add nothing the thread, but the more people that read what you posted the better.
 
macinnv said:
I would be interested in only two US carriers if they can then have the bargaining power to push around Apple more and force carrier branding on the front of the iPhone.
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This is one of the reasons why apple didn't carry Verizon when they initially launched the iPhone. Apple did not want any carrier branding on their pretty little iPhone.
 
macinnv said:
I would be interested in only two US carriers if they can then have the bargaining power to push around Apple more and force carrier branding on the front of the iPhone.
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Why on earth would that be a reason for anything? Even a joke?
 
I take a different view on whether the merger is good or bad for customers.

I think it's good. Added spectrum on the AT&T Network helps coverage and data speeds. They are still investing heavily in backhaul.

Having 4 (2 with decent coverage, 2 without) isn't really good for customers.

Customer choice isn't always about price. People want it all without paying for it.

I've used Sprint and t-Mobile and speed and coverage were horrible. I'd rather the added coverage and speed when I need it rather than a cheap alternative.

Price gouging and price-fixing can be regulated. It's like illegal immigration, there are plenty of laws covering it, they just need to enforce them.
 
Sprint T-Mobile merger should be allow to happen a long time before AT&T and T-Mobile.

Reason being is if Sprint and T-Mobile merger you would have 3 big guys. Instead of 2 big guys and then everyone else.

Right now you have 2 big guys and 2 semi big guys. If AT&T and T-Mobile merge Sprint would be a non factor and just not larger enough to go head to head with Verizon and AT&T. Things are bad enough right now that AT&T and Verizon do not really even care what T-Mobile and Sprint do.

That being said I would still be against Sprint and T-Mobile merging but not nearly as much as AT&T and T-Mobile.

This does not get into the different network issues between sprint and T-Mobile.
 
snowmoon said:
Any way you slice the AT&T+TMobile merger is bad for consumers. It creates a US monopoly in the national GSM space and wipes out a strong value player.
Click to expand...

verizon's LTE is just upgraded GSM and can be used around the world
 
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