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Sprint: AT&T and T-Mobile Merger Would Create Duopoly

Article Comments  100+  

Apr 19, 2011, 4:24 PM   by Eric M. Zeman   @phonescooper

Sprint held a conference call this afternoon in an attempt to cast some spin on comments made about CEO Dan Hesse by AT&T. On April 15, Hesse made comments regarding Sprint's opposition to the AT&T/T-Mobile merger. AT&T responded with a post on its policy blog, saying that Hesse's remarks were off-base, and not consistent with its past position regarding mergers and acquisitions, and the competitive nature of the market. Sprint representative John Taylor said that AT&T's blog post was an attempt to mislead the public on Sprint's position. Taylor says that Sprint favors mergers and acquisitions, but not in the case of AT&T and T-Mobile, which it repeatedly said would create an imbalanced duopoly (AT&T/T-Mobile and Verizon Wireless) in the U.S. Sprint said that the merger will reduce competition, slow innovation, increase consumer pricing, and won't lead to any real consumer benefit. Sprint says the merger won't lead to LTE in rural areas, nor will it improve coverage in urban areas, as AT&T and T-Mobile's GSM networks almost entirely overlap. Sprint said it will continue to "raise the alarm" about the merger, which it firmly believes should not happen. It expects U.S. governmental regulators to see past what it called AT&T's attempts to distract the public. AT&T is expected to file official paperwork with the FCC this week. The FCC has promised the deal will undergo a thorough review.

from Sprint

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Comments

This forum is closed.

This forum is closed.

Vmac39

Apr 20, 2011, 9:22 AM

Just suppose this worked out for the consumer

If VZN and ATT wanted to maintain most of their customer base, they would want to modify their plans as much as possible to better compete with the smaller companies. In some ways, it's the smaller companies that keep the bigger ones honest. If too many people started to switch to smaller and more reasonable carriers plans, even though most of them aren't as good as the larger ones on their own, they a lot of them rely on roaming deals with the larger carriers. With that being said, the FCC could strongly suggest(make cough, cough)ATT and VZN restructure plans to give the consumer better deals. Especially ATT, when this merger goes through.

The only real issue with consumers as I see it, are the plans. They're expensive and if the larger ...
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there will be stipulations of course put onto this merger, if it goes through. that is a given.

"for Tmobile to divide their assests and break them up into regions and have an auction or sorts"

a little hard for the little guys because you have...
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tether

Apr 20, 2011, 1:13 PM

Dan Hesse is a brilliant, customer focused CEO & Sprint RULES!!!

You people who are bashing Sprint for going after this merger are insane in the membrane. Unless you like $150 per line phone bills, you should be supporting Sprint in this cause. Dan Hesse really seems to be a genuine, honest guy keeping things fair with his customers (how about UNLIMITED data is UNLIMITED being one example!!!!). From Sprint to Virgin to Boost, he has run things very customer-focused and fairly. If Dan Hesse would be the guy in charge of the Deathstar (ATT) after this merger, I would probably be OK with that because he is ethical. He is totally unlike the people in charge of AT&T & Verizon now who take the American public for fools and think we are just their sheeple they aim to control & rob from our wallets at will.
He doesn't care about customers any more than Ralph de la Vega at ATT does. It's all about the money. Sprint is giving people unlimited data because they are hoping people will be distracted and won't notice the crappy network. And you predict $150...
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Dan Hess is a self centered man who is convinced that the government should fight his battles for him.

I have zero respect for Sprint after their ignorant cry for government intervention.

No one but a card-carrying socialist would ever logical...
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edzero

Apr 20, 2011, 10:23 AM

quit your cryin

Im so tired of hearing Sprint cry about this sale. Calling it a duopoly before it even happens is like they're giving up the fight before the fight has even started
edzero said:
Im so tired of hearing Sprint cry about this sale. Calling it a duopoly before it even happens is like they're giving up the fight before the fight has even started


Try this one. Quit your yappin'. U...
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a992156

Apr 19, 2011, 5:40 PM

Go Team Hesse!?

Anybody?...... Shocked
You guys need to keep fighting this cause i have at&t and they sux and r to high wish u guys would merge with us cellualar or verizon
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HELL YEAH!!!! the guy is great! Cool
tgc1980

Apr 20, 2011, 1:18 AM

I still don't get this whole merger thing.

T-Mobile says, "we have the best 4G network in the nation!" at&t responds by buying them. Is that how that works? (I'm just barely getting back in to the Phone Scoop world, so please have mercy on me.)
I guess so....
Troll-Bait

Apr 20, 2011, 5:31 PM

I agree with everything except for the whole "duopoly" thing...

And well, the idea that there is no competition in the market.

Please don't allow the government to get involved in this stuff. It's insane!

You want faster Internet on your phone? let this go through!
You want better coverage? let this go through!
You want more competition and innovation??? LET THIS GO THROUGH!!!

Who is so unbelievably blinded by irrational fear that they honestly believe that this merger will not be good for everyone??

Do we really need the government to step in and stifle competitive moves like the one AT&T is making??

Has anyone actually paid attention? Anyone read some logical arguments on this? Or economics in general???

Is ANYONE here actually knowledgeable on this topic?

Atlas Shrugged.......
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I guess the whole idea is that Sprint and other companies might consider that this new company, if approved, will be a powerhouse usually the economies of scale to acheive higher profits. now, that isnt a bad thing but they are afraid that consumers w...
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Troll-Bait said:
You want faster Internet on your phone? let this go through!
You want better coverage? let this go through!
You want more competition and innovation??? LET THIS GO THROUGH!!!


I hope that you are...
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You must have drank the Kool-Aid? How does eliminating a nationwide player and having two companies control 80 percent of the entire U.S. market "increase competition"? If we eliminated 8 teams (or 1/4 like this merger would do) from the NFL. Then w...
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Don't let the government get involved? Who do people think regulates PUBLIC AIRWAVES? These companies operate in an industry where they don't own the airwaves, the lease them from us, the people of the US, as regulated by the government we vote into p...
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phonepimp248

Apr 19, 2011, 10:17 PM

Sick of Sprint's lies...

I am sick and tired (and very saddened) by the current Sprint management. I have worked in the industry a long time (even with Sprint directly) and it is very sad how Sprint has been mismanaged. They have engaged in a policy of lies and mistruths with their own customer base and to the public in general. Yes, the AT&T/T-Mobile merger is a big threat to Sprint but the current state of Sprint can only be blamed on SPRINT and NOBODY else! I am in the Detroit market and I have seen Sprint lie to their own customers about the 4G launch...engage in unethical practices to lock their customers into new contracts and then threaten them with legal action if they break the contract and attempt to win contracts based on lies. Honestly, AT&T, Verizon and...
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Sprint is in trouble even if this merger wasnt going to go through.

they dont knwo how to execute on any plans. i thought the merger between nextel and sprint would be fantastic, and that if they would execute their plans it work work; boy was i a...
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Where can one get drugs as good as yours? I wont even bother asking for any specific examples cuz youd make them anyway. As ive stated before, even rational Sprint haters acknowledge that Dan Hesse is pretty much solely responsible for the great turn ...
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iDont Care

Apr 19, 2011, 4:36 PM

Silly Sprint

Stop blaming others for your own shortcomings. You got yourselves into the mess that you're in. Now you want waste millions of dollars by taking on Ma Bell? What are you stupid? Ma Bell has Washington bought already. This is a done done nobody how you slice it.

Why don't you put the money you're using to fight the merger to much better use like improving your crappy WiMAX network or doing a deal with LightSquared.

Cause honestly, Sprint you're in over your heads. Ma Bell will eat you alive and when she's through, you're gonna begging for Big Red to save you only Big Red doesn't need or want you.
my mistake Wink
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I agree, Sprint deal with your own issues, because they can't cut the nut to buy TMO, so everyone else shouldn't be able to. Maybe Hesse needs to fly down to Havana and attend the Party Congress with Raul and ask him for help. And btw, if he goes, ...
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Putting fanboyism aside I would like to hear someone give an honest answer as to how this merger would help out the regular consumer? Pointing fingers at sprint is so easy but who misses the whole point. I feel bad for the tmobile customers who i beli...
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Agreed. One more excellent reason this merger should not be allowed.
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If anyone knows where ATT is coming from or what their REAL intent is with this acquistion, it would be Dan Hesse. He spent 23 years with the carrier and rose to the top as CEO. He knows what they're thinking.

I commend his stand on the truth behi...
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This is neither silly of Sprint nor are they blaming others for their shortcomings. Does Sprint have shortcomings? Yes. Have they made dumb (read: insane) business decisions in the past? Yes. The two points however are not related. If AT&T acqui...
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Azeron

Apr 19, 2011, 6:09 PM

"AT&T and T-Mobile's GSM networks almost entirely overlap. "

This is all that matters. All the other BS you guys post about Sprint is immaterial. This merger does not make any sense.
you are right about that they do overlap in a lot of areas but this merger is good for a lot of reasons.. do i think it will go through? probably not. should it? probably.
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wvucraig

Apr 20, 2011, 4:11 PM

New Development

WASHINGTON, DC - Sprint CEO Dan Hesse has announced that in an effort to stop the impending doom that the AT&T-mobile merger will cause, he is traveling to the FCC on Monday to throw a temper tantrum on the sidewalk in front of the offices of the Commission until he gets his way. When asked about the reason for this new campaign, Hesse said "At Sprint, we care about our customers, and the entire world. If AT&T is allowed to purchase T-Mobile, a crack will open in the crust of the Earth between Missouri and Kansas. Hoards of Demonic forces will emerge and evil will rule for 1,000 years. Oh, and there won't be any competition." Laughing
wvucraig said:
WASHINGTON, DC - Sprint CEO Dan Hesse has announced that in an effort to stop the impending doom that the AT&T-mobile merger will cause, he is traveling to the FCC on Monday to throw a temper tantrum on the sidewalk
...
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renato3gs

Apr 20, 2011, 12:58 AM

That Is Competition!

It is a harsh reality but somehow Sprint has to work very hard to compete. Smile
renato3gs said:
It is a harsh reality but somehow Sprint has to work very hard to compete. Smile


Why work hard when you can get the government help out?
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What if its the other way around (regardless of what sprint can/cannot do) Will the other network provider do the same thing Sprint is "doing" as of now?
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Troll-Bait

Apr 20, 2011, 9:11 AM

Sprint: "we are an insignificant company who cannot compete"

I'm sure their stockholders are pleased.
Sprint: "we are an insignificant company who cannot compete"

Where do you find that quote?

John B.
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ajac09

Apr 19, 2011, 7:35 PM

This is america jack..

Cant compete so he cries.
ajac09 said:
Cant compete so he cries.


No one else can effectively compete when two companies are cornering the market.

AJ
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I want this to go through. Sprint needs the rude awakening. That thier current business plan is ineffective and they need to adapt or risk being bought. Prices will only go down that thier is only 3 companies now. I dont see why everyone thinks it wil...
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WiWavelength

Apr 19, 2011, 6:55 PM

rural LTE is just a ploy -- see the maps

AT&T has set up an "astroturfing" web site to promote the merger:

http://www.mobilizeeverything.com/ »

On this web site, AT&T displays supposed future LTE coverage maps. Side by side, one map depicts future LTE coverage under the current plan, another depicts future LTE coverage if the merger is approved. AT&T claims that the merger can allow it to use T-Mobile spectrum to expand LTE coverage to rural areas. Unfortunately, that claim is, at best, a half truth, at worst, an outright lie.

Comparison of the supposed future LTE coverage maps with current AT&T coverage maps shows that AT&T would deploy LTE only where it has existing Cellular 850 MHz and/or PCS 1900 MHz coverage. In fact, the propagation characteristics & coverage holes...
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yea its a good set up Smile

Gov seems to care mostly about the rural areas.
Good catch AJ-

P.S. I'm still hoping you can take a look at this one and tell me what I'm missing.

http://www.phonescoop.com/news/discuss.php?fm=m&ff=7 ... »
...
If I'm understanding these maps correctly, ATT is trying to snow job the FCC into believing that tmobile's added spectrum is going help immensely when in fact, ATT's current spectrum holdings could already accommodate their plan without acquiring T-mo...
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muchdrama

Apr 19, 2011, 6:04 PM

Blah, blah, blah...

'Stifling competition' yadda, yadda, yadda...

Dan, we all know you're only worried about Sprint being left in the dust.

But he has a point. It would create a duopoly. I'm against this merger.
 
 
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