“Dan Hesse’s White Room is closely guarded even within Sprint Nextel Corp. The chief executive officer carries the only key and draws black curtains over his scribblings before leaving,” Greg Bensinger reports for Bloomberg.
“This is where Hesse retreats to map out ‘nukes’ in red, blue and green ink, lately his tactics for stopping AT&T Inc.’s proposed takeover of T-Mobile USA,” Bensinger reports. “‘Clearly, purely, we want to win and block the merger,’ said Hesse, during an interview at the company’s Overland Park, Kansas headquarters. ‘This one poses real risks.'”
“Hesse has already thrown personal and corporate resources at blocking AT&T. He tripled the amount of time he’s spending on government affairs, testifying before Congress and making regular trips to Washington. Sprint is organizing industry opposition and filed a 377-page dissent with the Federal Communications Commission,” Bensinger reports. “The company even tapped its own engineers to show AT&T how to get more capacity from its wireless network so it wouldn’t need to buy T-Mobile.”
“Hesse is just getting started. He’s courting top technology CEOs to come out against the deal and sway public opinion. He’s working to get as many as 18 state regulators to scrutinize the purchase, which may slow down approval or prompt divestitures. He’s working on other tactics he’s not ready to disclose,” Bensinger reports. “Hesse’s company stands to lose if the deal goes through because, with less than half the revenue of AT&T or Verizon Wireless, Sprint would struggle to offer competitive pricing and the most cutting-edge phones. Sprint’s very survival as an independent company would be in doubt, he said.”
Bensinger reports, “AT&T makes the case its deal will actually benefit consumers. The Dallas-based company’s acquisition of T-Mobile will make it the largest wireless operator in the U.S., surpassing Verizon Wireless. Because of that scale, the company will be able to invest in more advanced networks and offer more wireless broadband, according to CEO Randall Stephenson.”
Much more in the full article here.
Related articles:
Trade Groups ask U.S. agencies to reject AT&T, T-Mobile deal – May 24, 2011
DOJ to launch in-depth investigation of AT&T’s plan to buy T-Mobile USA – May 3, 2011
Sprint blasts AT&T’s bid to buy T-Mobile USA; urges regulators to block deal – March 29, 2011
AT&T deal to face ‘steep climb’ at FCC – March 24, 2011
Verizon CEO: No interest in Sprint takeover; will not oppose AT&T’s purchase of T-Mobile USA – March 22, 2011
How Apple’s revolutionary iPhone led to the sale of T-Mobile USA – March 22, 2011
Consumer Reports’ publisher sees no ‘justification or benefits’ from AT&T’s purchase of T-Mobile USA – March 21, 2011
Sprint concerned over AT&T’s T-Mobile USA acquisition; complains of antitrust risk – March 21, 2011
T-Mobile: No Apple iPhone just yet after AT&T deal – March 21, 2011
AT&T to buy T-Mobile USA – March 20, 2011
“Sprint’s very survival as an independent company would be in doubt, he said.”
If I’d read that a year ago, I would have CHEERED! Sprint has had a perennial reputation for being a bunch of arrogant dickheads who particularly loved to dick around their victims, aka customers.
Now I’m not so sure. Clearly Hesse is a bit loony as well as a bit of a dickhead. But I see no reason for anyone to be pleased with massive consolidation in the cell phone industry. From past experience in other industries we know exactly where it leads: To higher customer prices and lousier service. Witness the RIAA and MPAA horrors of BIG MEDIA, etc.
So Bon Chance et Bon Courage to Sprint in thwarting BIG CELLULAR.
Let’s use our brain a little here. If Sprint is crushed due to AT&T/T-Mobile merge, the reason is 1) No vendor will sell network equipment to Sprint or 2) customer prefers AT&T than Sprint. If customer prefers AT&T either due to quality or price, why this is bad for consumer? If Sprint is flourished, it means customers flock to Sprint from AT&T, then let’s AT&T suffers from its own doing. Again consumer wins.
“Let’s use our brain a little here.”
You mean use our ‘OpenMind’? Who ARE you?
Derek Currie at this moment.
zzzz
It isn’t so simple. If AT&T becomes the largest carrier, it will be easier for them to get cheaper hardware (due to scale). Think about Apple: they have cornered the market for LCD displays and flash memory, and because of the massive size of their orders, they get lowest prices. HTC, LG, Motorola can’t get the same memory (or LCDs) at such low prices, since they aren’t ordering nearly as much. Same with Sprint; they’ll never be able to squeeze such low prices for equipment if their order is half the size of AT&T’s. When equipment costs them 50% as much as it does AT&T, it has to be paid of somehow, which means Sprint simply won’t be able to offer cheaper plans than AT&T.
If it happens as you said, then AT&T can offer less expensive phone than Sprint. What is the bad for consumers? You do want pay less for the same phone, don’t you? Of course, if you are Sprint shareholder, then you are out of luck. The question is for average joe, why should I pay more for a Sprint phone since you Sprint shareholder may lost some money?
You’re retarded right? Companies without competition never lower prices and their complacency stifles innovation. Why do you think AT&T got broken up in the first place?
Because they didn’t pay off the right people?
Not to nitpick, but, that would be Bonne Chance…
Thanks. I’ll never get the logic of feminine words versus masculine words. Logic to me is when words are spelled as they sound. Sound I get. 😉
He has to try to block this acquisition. It will destroy the competitive environment for wireless service in this country.
just my $0.02
big fish eat smaller fish…
Yeah… but sometimes the smaller fish gets to eat the big fish.
Just ask the piranha.
AT&T has enough money to invest in advanced networks, just like it’s been doing for the past 5 years. This merger is about grabbing spectrum space and customers, and removing a competitor who has been a thorn in its side, particularly with T-Mobile’s blatant courting of iPhone users.
Mr. Hesse, you have lost. AT&T, the monopoly that was broken up decades ago, is back! Live with it! The present mood in this country is screw the consumer and make the rich richer. No matter that the very people who are being screwed the most are the ones supporting this very thing (can we say Tea Baggers?), the reality is Sprint might as well close up shop. The wireless revolution is going to come to a screeching halt once this merger is approved. Once again. money talks and politicians listen.
“No matter that the very people who are being screwed the most are the ones supporting this very thing (can we say Tea Baggers?)”
You’ve got the essence of their politics right there, and not a one of them can see it. “Ohhh screw us, great mega-rich people. It is your right to do so. And while you’re at it, don’t worry about poisoning us with the output of your factories. Stopping that would require government regulation – and that is MUCH worse than poisoning my children.”
Excellent sarcasm. My laugh of the day. Most appreciated.
But oh yeah, you’re right. Now I’m grumpy again.
Sometimes I think these people live in hopes of some LaLaLand where all the rich psychopaths will tinkle down their riches upon them for being so supportive of the new aristocracy’s ascendance to medieval style godhood. 😆
I think people are overly cynical about the while thing. Really? Innovation will come to a screeching halt?
I doubt that.
In fact, I doubt there will be any affect on the majority of us whatsoever.
I expect the merger will go through. The more spectrum AT&T can control should mean much better LTE4 in more places than it can provide with it’s current spectrum control. I don’t think rates will go up. They should be able to make more money with lower rates among a bigger base of customers. In theory anyway.
Does Sprnt support T-Mobile’s network? Is Sprint GSM? Is large always bad?
Even government is becoming larger and more intrusive in our lives, yet we are told this is good. Government is also less competitive and is often costing more due to less diligence in cost cutting unnecessary redundancies or increasing efficiencies. I can not see this being much different. ATT will not cover much service area than now. If they do not offer ther customers better deals or service, well- customer can choose another. Maybe Sprint should spend more time on getting products in the pipe for the customers. Bring value and something unquie to your portfolio.
ATT took a chance with the iPhone and caused the market to change. Now this has had rewards and problems. Service needs improvement and T-Mobile can bring new cell sites. Otherwise, they have to wait upto or beyond five years to get cell sites due to government or local legal actions. That hurts customers as well.
For me, Let ATT move forward. My .00000002 worth.
And we have Apple to thank for all this. If Apple had released the iPhone to more companies sooner this may well not be happening. It is very possible that the two companies with iPhones (AT&T/ T-Mo & Verizon) will take more customers from Sprint thereby ensuring it’s demise. Did Apple plan it this way or are they a victim of their own success or greed?
Will Apple surprise everyone and release an iPhone at least for T-Mo in 2011 thereby short-circuiting AT&t’s purchase of T-Mo?
Anyone who thinks that removing competition will benefit customers needs to have his head examined.
That is not always the case. Power companies are few and manageable. As an example Too much competition can create many problems and cost for consumers in this industry.
A blanket statement is equally bad as no choices are allowed- removing any competing ideas is limiting choice.
Why doesn’t he open his checkbook and buy t-Mobile instead of hiring an army of lobbyists and lawyers?
Don’t all these pro business folks remember things such as pricing wars? Keep things competitive so the consumer wins. Ma Bell was broken up for a reason!
By their logic they should be completely happy with a huge federal government with all the power it wants. Or is it only businesses that are allowed to have such power?
There’s a reason Sprint is hemorrhaging customers, they know it, “we” know it, and that’s why AT&T and Verizon are only growing.
I had Sprint when they first rolled out in the Los Angeles area circa 1998, then switched to Airtouch (now Verizon) about a year later. They were the only carrier who you could sign with 100% contract free and gave you the first incoming minute free. Those were the days….
Several years ago, I decided to switch to Sprint from T-Mobile. Roughly a week later, I cancelled the service and stayed with T-Mobile. Why? a) Customer service was 100% overseas and highly undertrained b) Cell reception was not any better. c) I received a HUGE prorated bill within 5 day of my activation, demanding payment within 14 days. (We have a 30 day buyers remorse period in California)
The bill within 5 days of activation was enough to prompt a call to customer service. Each person I was transferred to was overseas, was completely scripted, had no idea how to look at my bill and kept transferring me until finally the last person was in Canada. T-Mobile was 100% U.S. based customer service at the time and the prices were approximately the same except I got a discount on Sprint through my job that would have made it cheaper.
Years later, I’ve been with AT&T for about three years and have had…. a) 100% U.S. based customer service. b) Less-expensive phone bill (mainly due to rollover min). c) Relatively few issues with billing (mostly data related), and all were cleared up on the first phone call with the first person I spoke with. My wife had Verizon and their coverage was excellent but their billing department was retarded. Tell me…. how can you be billed for domestic roaming when you’re on a “free roaming” plan?! Yeah, that took a 45min phone call and a supervisor to fix.
That said, I have absolutely no reason to switch from AT&T unless there is some compelling or lucrative reason to do so. T-Mobile had the best customer service of any carrier I’ve had, period–Sprint had the worst.
So AT&T didn’t make enough money with the iPhone to “invest in more advanced networks”? Hah! Greedy, lying sons-of-bitches is what they are.
I want AT&T to quickly takeover T-Mobile so I can get a iPhone, finally.
Isn’t it ironic how many Americans want the government to get out the way of the business sector and yet meddle in it’s goings-on at the same time.
You mean like the Tea Party? 😉
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