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

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.

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.

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.

sprintstock560
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.

Top Rated Comments

coder12 Avatar
157 months ago
Nice corporate love-triangle going on here. Someone should make a movie.

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
Score: 8 Votes (Like | Disagree)
aohus Avatar
157 months ago
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.
Score: 7 Votes (Like | Disagree)
ravensfan55 Avatar
157 months ago
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.
Score: 7 Votes (Like | Disagree)
JAT Avatar
157 months ago
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.

Why on earth would that be a reason for anything? Even a joke?
Score: 5 Votes (Like | Disagree)
Tarzanman Avatar
157 months ago
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
Score: 5 Votes (Like | Disagree)
toddybody Avatar
157 months ago
"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."

Dan Hesse must have this poster hung over his desk...


Score: 4 Votes (Like | Disagree)

Popular Stories

iOS 17

Apple Releases iOS 17.0.2 and iPadOS 17.0.2 for All iPhones and iPads

Tuesday September 26, 2023 12:47 pm PDT by
Apple today released iOS 17.0.2 and iPadOS 17.0.2 updates, with the software coming five days after the releases of iOS 17.0.1 and iPadOS 17.0.1. Today's iOS 17.0.2 and iPadOS 17.0.2 updates arrive as build 21A351 and can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. Note that iOS 17.0.2 was previously made available for iPhone...
Apple WWDC23 macOS Sonoma hero

macOS Sonoma Launching This Week With These New Features

Sunday September 24, 2023 12:45 pm PDT by
Apple previously announced that macOS Sonoma will be released this Tuesday, September 26. The free software update includes many new features and changes for the Mac, including the five that we have highlighted below. In addition to these five features, we have shared the full release notes for macOS Sonoma below for a complete overview of everything new. Desktop Widgets macOS Sonoma...
iPhone 15 Pro Lineup Feature

Kuo: iPhone 15 Pro Overheating Issues Likely Due to Thermal Compromises, Not 3nm Node

Tuesday September 26, 2023 9:12 am PDT by
Complaints about heat issues with the iPhone 15 Pro models are not related to TSMC's 3-nanometer node that was used for the A17 Pro chip, according to well-respected Apple analyst Ming-Chi Kuo. Kuo says that overheating could be caused by "compromises made in the thermal system design" that allowed Apple to cut down on the weight of the iPhone 15 Pro models. Kuo says that the reduced heat...
iPhone 16 Side Feature

iPhone 16 to Include an Additional Capacitive 'Capture' Button

Monday September 25, 2023 12:50 pm PDT by
The iPhone 16 series is expected to gain an additional capacitive button, known internally as the "Capture Button." Codenamed "Project Nova," the button is likely to be one of the main selling points of the iPhone 16 lineup, assuming it gets past the initial testing phase. The Capture Button is located on the same side as the Power button, only positioned slightly lower - where the mmWave cutout...
ipad mini blue

Apple to Launch iPad Mini 7 Later This Year, Industry Report Suggests

Monday September 25, 2023 3:16 am PDT by
Apple could be preparing to release a seventh-generation iPad mini before the end of the year, based on a new report by DigiTimes. In an article discussing stagnating global tablet demand in the second half of 2023, the Taiwan-based outlet forecasts an uptick in Apple's share of the market owing to orders for a "small-size" iPad in the fourth quarter. From the report (see bold): In the...
macos sonoma 4

Apple Releases macOS Sonoma With New Widget Features, Safari Updates, Screen Sharing Improvements and More

Tuesday September 26, 2023 10:01 am PDT by
Apple today released macOS 14 Sonoma, the newest version of the operating system that runs on the Mac. macOS Sonoma has been in beta testing for several months, and it is compatible with the 2019 and later iMac, the iMac Pro, the 2018 and later Mac mini, the 2018 and later MacBook Pro, the 2019 and later Mac Pro, and the Mac Studio. The ‌macOS Sonoma update can be downloaded for free on...