AT&T CEO does not envision regulatory approval of T-Mobile and Sprint merger
While one might say it was just sour grapes from AT&T’s own failed attempt to pick up T-Mobile years ago, Mr. Stephenson levied the same argument in this case.
“The problem as I see it is the way the government shut our deal down. They wrote a complaint and a very specific complaint. You’re consolidating the industry from four to three national competitors. If you think of Sprint and T-Mobile combining, I struggle to understand how that’s not four going to three,” said Mr. Stephenson at the Economic Club in Washington, DC.
Whether or not we will see any overt statements from AT&T to regulators beyond this rhetoric remains to be seen. AT&T is currently massaging the landscape so that it will be successful carrying out its plans to buy DirecTV. While that does not have the same challenges that Sprint and T-Mobile may face, AT&T’s deal is also running parallel to merger plans of two other large cable companies, Comcast and Time Warner Cable.
3. 0xFFFF (Posts: 3346; Member since: 16 Apr 2014)
It's sad, really. ATT is spending $50 billion on a business that offers mediocre growth over time, just to get greater monopoly pricing power and screw over customers.
If ATT spent $50B on advanced wireless and fiber, they could offer all sorts of interesting services, including gigabit fiber and gigabit wireless. It seems the only company capable of thinking intelligently about the future is Google.
10. Droid_X_Doug (Posts: 5876; Member since: 22 Dec 2010)
It is never about innovation for monopolists. Instead, it is all about screwing the consumer, which AT&T is well on the way to doing.
However, I do agree with Randy's analysis of why Sprint won't be successful in its attempts to acquire T-Mo.
2. Jeradiah3 (Posts: 1007; Member since: 11 Feb 2010)
Stephenson has every right to strike back at this "so-called" merger between T-Mobile and Sprint. I don't think that it's a good idea because you're talking 2 companies with different frequencies which means that ONE of them would have to shut down their network to join the other................I wonder who that would be lol.
The AT&T/T-Mobile merger a few years ago made sense because they ran their network on the same towers therefore having a similar signal (GSM). To merge Sprint and T-Mobile is like Kim and Kanye............wheres the similarity in that lol. I like what T-mobile is doing and if they merge with Sprint, they'll regret it in the long run
11. Jeradiah3 (Posts: 1007; Member since: 11 Feb 2010)
lol. I used an analogy that I thought would make sense. My bad lol
5. TheRequiem (Posts: 158; Member since: 23 Mar 2012)
Well, I can tell you this. Being an Alcatel employee, the new Sprint 8 channel radios are by far the fastest and most advanced in the industry and they aren't going anywhere.... I doubt they will shut either network down, but I'm pretty sure they will combine LTE assets since that's what everything will be in a few years anyway.
6. 0xFFFF (Posts: 3346; Member since: 16 Apr 2014)
Sprint has the worst LTE service in the nation. Instead of fixing this, Sprint and Son are out shopping for T-Mobile. This basically says all that needs to be said about Sprint's bright future, or lack there of.
8. TruPatriot (Posts: 92; Member since: 27 May 2013)
It won't matter what radios Sprint uses if they don't get more towers up. They don't effectively service the areas they claim to as it is right now.
7. TruPatriot (Posts: 92; Member since: 27 May 2013)
I do not envision Randall Stephenson pulling his head out of his ass any time soon.
9. 0xFFFF (Posts: 3346; Member since: 16 Apr 2014)
Take away the glasses and add a mustache and it is plain to see who Randall Stephenson models himself after.
He probably has a stick on mustache he uses at home when he is planning on how to screw over consumers even more.