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Sprint's Dan Hesse speaks out against AT&T's purchase of T-Mobile

Posted: , by Ken N.

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Sprint's Dan Hesse speaks out against AT&T's purchase of T-Mobile
The potential acquisition of T-Mobile by AT&T would mean that 80% of the nation's mobile subscribers would be with either AT&T or Verizon. So it's understandable that Sprint is concerned. Sprint will also have to contend with public perception that the wireless market has become a duopoly, rather than the current Big 4.

Sprint CEO Dan Hesse voiced his concerns today in San Francisco, saying that "If AT&T is allowed to swallow T-Mobile, competition will be stifled, growth will be stifled and wireless innovation will be jeopardized."

This statement echoes what Sprint expressed in an earlier press release. Sprint's senior VP of governmental affairs said that "Sprint urges the United States government to block this anti-competitive acquisition. This transaction will harm consumers and harm competition at a time when this country can least afford it."

We don't know if AT&T will use their increased size to lower prices, or raise them. But our chief concern is that a duopoly will result in slower network and device innovation.

source: Reuters

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posted on 15 Apr 2011, 16:51 9

1. luis_lopez_351 (Posts: 951; Member since: 18 Nov 2010)


"a duopoly will result in slower network and device innovation." Tue true true.Never saw it that way. That sentence will sure make FCC turn down the Merger. Or i hope so.

posted on 15 Apr 2011, 19:51 1

20. wowe1234 (unregistered)


Don't forget that At&t will be bringing in more profit so Sprint will be out sized related to profit in the bidding process from the size of At&t and Verizon in the next Broadband spectrum auction which will happen in 2012/2013 with trice the spectrum that will be available than the last spectrum auction. The Spectrum is being ordered by the FCC right now.

posted on 15 Apr 2011, 19:53 2

21. luis_lopez_351 (Posts: 951; Member since: 18 Nov 2010)


And And And! At&t will get slow-er!

posted on 15 Apr 2011, 17:07 7

2. DJLegacy2k5 (Posts: 212; Member since: 28 Jan 2011)


How will it cause a slower network? The networks can be used to Expand the 4g footprint enormously. It will be able to get people in rural areas better coverage...The bandwidth will still be there from both carriers towers and tech. Worse device inovation? Everyone in Asia laughs as we bring out phones with tech that they have had standard for years at the point of our release in the USA. Maybe back when all there were was flip phones that statement might be true, but with Android trying to prove iOS is the garbage that it is, now Windows is emerging with new phones on the way, and blackberry swears to hang on by its teeth.

What else do people want for "innovation"? Technology isnt going to STOP evolving because there is ONE less world wide carrier for service. The parts companies are still going to make new displays, and screens, and processors, they need to make a living too. These arguments are complete BS...T-mobile needs to sell off because of all the CRAP credit scores they took on that have defaulted on their bills and whatnot.

Obviously T-mo wants to be baught up, so it makes sense for the other GSM carrier to do it as the tech will be more easily adopted into a single network...

Everyone needs to stop bitching, or Sprint needs to do more to make more money so they can afford expansion and better service coverage...

Lets face it, T-mo is garbage, but they can afford to take on Low credit high risk customers and can afford to have LOW price plans because they have such a small network to up-keep........Oh wait, NO, all of these customers with poor credit and all these people that want these AMAZINGLY low price plans have been the downfall of the company and now they cant afford to operate and want to sell off.

If you dont have good enough credit to get Verizon or AT&T then thats YOUR fault, dont blame the carriers for your poor credit score.

Im so sick of seeing people complain about this purchase, but they dont realize they are most likely the reason WHY T-mo is doing so poorly....

posted on 15 Apr 2011, 17:26 3

5. zuno gyakusatsu (Posts: 257; Member since: 16 Mar 2010)


Reading comprehension clearly isnt your strong point. He said it will cause slower network innovation and device innovation.

posted on 15 Apr 2011, 17:47 4

10. DJLegacy2k5 (Posts: 212; Member since: 28 Jan 2011)


What are you talking about? I clearly understood the statement...Im trying to figure out how either are possible as expanding the 4g footprint and dropping off all those high risk low credit customers that arent paying their bills anyway would add higher data speeds and coverage to more areas and also free up bandwidth by dropping the crap accounts.

posted on 15 Apr 2011, 18:38 3

12. Axel (unregistered)


Because AT&T and T-mo both don't have 4g networks. They have 3g that can match 4g speeds. Can. But they can't when every user from AT&T and T-Mo using 3g connection at the same time. Everything will slow, because they don't have a seperate 4g network.

posted on 15 Apr 2011, 18:42 2

14. DJLegacy2k5 (Posts: 212; Member since: 28 Jan 2011)


But AT&T already has LTE ready to get built out and the T-mo take over is at least a year out to even get STARTED. So by time the 4g build out DOES happen, it wont be as much of a concern.

posted on 15 Apr 2011, 20:39 2

25. Nick (unregistered)


But AT&T will nickel and dime it's customers as they are now. People will stay though, as they have been doing for a while, and as the 4g network builds up on AT&T's end, regardless of the merger, there will too many people on one network. Over 130 million!? They said T-Mobile 3g phones will not work after the upgrade, and if everyone switches to 4g, think of all the network overload. Why do you think they took away unlimited data? AT&T's network couldn't handle the load.

posted on 15 Apr 2011, 21:11 3

30. networkdood (Posts: 6330; Member since: 31 Mar 2010)


There is currently a spectrum crunch that needs to be addressed. If AT&T does not get this deal done...things could be bad. If they do get it done, then they may need more spectrum by 2016. T-Mo wants to sell and they chose AT&T. Sprint is having a hard enough time handling their half dozen networks and then throw issues with CLEARWIRE into the mix. If BIG V did this deal it would tough for them, considering their technological incompatibility. This deal makes sense, and has made sense for the last 5 years.

posted on 16 Apr 2011, 10:26

53. remixfa (Posts: 14255; Member since: 19 Dec 2008)


i agree this makes way more sence than a sprint/tmo merger or anyone else. that doesnt mean i think its good for the over all "mobile atmosphere".

time wil tell i guess, but a tiger cant change its stripes. ATT has never been a "good company".

posted on 16 Apr 2011, 07:33

45. kolevdimo (Posts: 4; Member since: 02 Mar 2011)


Bravo Nick

posted on 16 Apr 2011, 21:01 1

56. BLikens1619 (Posts: 66; Member since: 12 Apr 2008)


The buyout expands the network so there shouldn't be any network overloading.

posted on 15 Apr 2011, 18:00 2

11. snowgator (Posts: 3600; Member since: 19 Jan 2011)


Okay, so in your world everyone with T-Mobile is there because they got turned down by AT&T and Verizon? Really? Or could it be due to the fact there are good devices, affordable plans, decent reception, and no reason to take their money to the big two? Yes, T-Mobile has been bleeding customers, but that is more due to the lack of attention their parent company has given it then the "poor credit scores". If the credit scores were so bad, when they left T-Mobile, where did they go? T-Mobile may accept bad credit risks, but when 85% of the US population has cell phones (just tossing a number from memory, don't slam me if it is wrong), a lot of AT&T and Verizon customers are not all in the black financially either. Stop with the personal jabs, DJ. T-Mobile customers are having a bad enough year with out piling on.

The consumer, and competition, will be fine after this merger. Some other company will step up and become the #4, and who knows how much benefit Sprint will get, especially if they can figure out how to get reception indoors, the only reason I will not be going to them when my contract is up. But ole Dan needs to fight this merger for the companies sake, so go fight, Mr. Hesse. He won't stop it, but why not try?

posted on 15 Apr 2011, 18:41 2

13. DJLegacy2k5 (Posts: 212; Member since: 28 Jan 2011)


Sprint and T-mo have more write-off accounts than Verizon and At&t. This is a direct effect of taking in what are considered "High Risk" Accounts or "poor credit accounts". Why do you think they are called "High Risk". T-mo and Sprint allow lower teir credit to pass and get accounts at a much lower requirement. When you have X number of customers, and XX are not paying their bills it is a problem.

Im not saying AT&T and Verizon dont have plenty of write off status accounts, Im just saying when you are a SMALLER company, you cant afford such a high risk when you are already offering lower cost plans and trying to get all the high end phones...Im just pointing out that their business strategy doesnt seem all that sound.

posted on 15 Apr 2011, 19:10 1

17. snowgator (Posts: 3600; Member since: 19 Jan 2011)


Well said. Makes a lot more sense when you put it like that, and very little wiggly room to argue and very little doubt T-Mobile's own practices got them here. My apologies.

Still feel a little bad for the customers just caught in the cross fire though.

posted on 15 Apr 2011, 21:15

31. networkdood (Posts: 6330; Member since: 31 Mar 2010)


This is true. Reminds me of COMCAST as they take just about any customer, while UVERSE does not. T-Mo bills to account and has great low priced plans, but did it help them in building out their network? They ran out of capital for two reasons - 1) They are not bringing in enough money, and 2) A % of the profits goes to their German telecom owner.

I suppose another alternative is to spin off T-Mo into its own company with no outside owner....of course, AT&T wireless tries this and went down the tubes.

posted on 15 Apr 2011, 21:08 2

29. networkdood (Posts: 6330; Member since: 31 Mar 2010)


DJ, I hear ya dude...people on this site are normally not very intelligent - the average American has no clue how to use a smartphone or how they work...most people believe companies use satellites to give service and that they can call their carrier to 'move a satellite' in their direction for better reception....

posted on 15 Apr 2011, 22:59 1

37. donpeppino9 (Posts: 67; Member since: 24 Jan 2010)


amen, finally someone who actually speaks with competence.

posted on 15 Apr 2011, 23:13 2

38. FU2 (Posts: 11; Member since: 27 Jun 2009)


"Android trying to prove iOS is the garbage that it is". First off, what is that comment supposed to mean? Second, learn how to spell before you pretend to know what you're talking about, OK? "whatnot"," baught", just a couple of examples for you to ponder over. Third, Sprint isn't a "world wide carrier" as you put it, national carrier yes, world wide, NO. Nobody said technology would stop, but with less competition comes less innovation. There won't be as much of a need, so-to-speak, for AT&T and Verizon to continue and be so competitive, as they would cover 80% of U.S. customers. Technology grows and expands based on competition, the more competitive the market, the better and faster the technology will come. Next time please take the time to understand what you're talking about, before you make a silly attempt at sounding like you do.

posted on 16 Apr 2011, 05:47

43. AL_PAB (unregistered)


Please DJLegacy2k5 you are talking BS, I am a network researcher for cell phone communications, and AT&T network sucks worst than T-mobile at least they beat Sprint, t- mobile is becoming better and better, and download speeds reliable and fast not like your daddy AT&T. It will be a tragedy if Att buys T-mobile we will loose a company that customer service exist and that they think of peoples pockets. So please go and work for AT&T until you realize you suck and so as AT&T

posted on 16 Apr 2011, 08:19 1

47. networkdood (Posts: 6330; Member since: 31 Mar 2010)


I highly doubt you are who you say you are...nice try, though

posted on 16 Apr 2011, 07:11 1

44. Windsponge (Posts: 92; Member since: 01 Nov 2009)


normally I wouldn't comment but your trash is so offensive. you have a right to your view but I am glad I don't know you. I know enough stupid people.

posted on 15 Apr 2011, 17:09 2

3. Rawrzellers (Posts: 224; Member since: 22 Aug 2010)


Funny I was just reading an article that was explain the results of the merger and it will effect which devices come into the country and what devices don't. I personally don't want this merger to happen and would rather T-Mobile stay a separate company.

posted on 15 Apr 2011, 17:09 3

4. ecml (Posts: 129; Member since: 23 Mar 2010)


Will he just give up already and worry about his own network! He's just saying a lot of BS just for this deal not to go through...

posted on 15 Apr 2011, 20:31 5

24. phone333 (Posts: 331; Member since: 04 Feb 2009)


Do you even know what you're talking about?? You think you would benefit from less competition!!?

posted on 15 Apr 2011, 20:42 3

27. ecml (Posts: 129; Member since: 23 Mar 2010)


Actually yes I think I would considering that I am a AT&T customer and plan on staying with them for a long time and to receive even better service if this deal goes through will be a plus for me. But really, I can care less for less competition. So I think I can say yes I do know what I'm talking about although we don't have the same opinions.

posted on 15 Apr 2011, 20:52 2

28. tsb1 (unregistered)


You should care about the amount of competition. If there is less competition then that means they don't have to compete as much on pricing resulting in a high bill.

posted on 15 Apr 2011, 21:23 2

34. ILikeBubbles (Posts: 525; Member since: 17 Jan 2011)


less competition also means less pressure to improve... i think everyone understands this... look at the iPhone (i'm not even talking about iOS because i think that's purely opinion although i lie clearly on the Android side. thus the Honeycomb bee ^^) for how many years were they the only real smartphone choice? for how many years did NOTHING change between the new versions they released every 6 months or so? iphone iphone 2 iphone 3g iphone 3gs... it wasn't until android hit (sorry for the clear bias but hear me out here) and started producing another smartphone that the average user (i know i left out RIM but they were never really a competitor for the 'average' user to consider) that the iPhone really changed. the iPhone 4 is beautiful aesthetically! and i have to give the specs some respect because it is a good hardware phone. why did this happen? competition! it's competition in the beautiful free world that drives our innovation. especially with companies and owners who only care about squeezing every last penny out of a product. look at the xbox 360 and the ps3, they've been around for almost 10 years now (ok slight exaggeration but i'm not too far off) and they don't seem but the slightest interested in releasing a new product. there's rumors of the next xbox being released in 2015. What does this have to do with Smartphones and AT&T eating T-MO? well just because they're technically unrelated companies doesn't mean that they don't share the same drive. this IS america and Profit is god in this country. far be it from me to forbid them getting their money's worth out of a product but when does it go too far? when will innovation be stunted by greed? [/rant] I myself am personally waiting for a new phone to come out that fits my needs and it hasn't. i'm on Verizon's network and have had the Eris for about 2 years and don't feel comfortable with moving from a 3.2" screen to a 4.3" as i really am a small person with small hands and small pockets. sometimes i use my boyfriends DX to surf the internet but i couldn't see it being my daily driver. especially considering that it won't fit in half my pants!!! honestly i want a phone with a 3.2 or 3.4 screen and a 1.2ghz dual core processor with about 3 days of light use battery life... [/end rant] that being said innovation is one of my utmost concerns as far as networks and hardware. Honestly i think its about time that the 'big two' get called down. there's got to be a third company to even them out. and Sprint is a strong choice however they're just too small now and don't seem to be growing in a fashion that would make them a threat to either AT&T or Verizon. T-Mo did have potential i will admit, having beautiful hardware but their 2gb soft cap ruined it for me. quid pro quo i understand. there has to be a group of people somewhere planning to fit all of our needs perfectly. i just hope that when it comes out enough people jump on the bandwagon to rock the boat. :)

posted on 15 Apr 2011, 21:52

35. downphoenix (Posts: 3165; Member since: 19 Jun 2010)


or compete as much for the quality of service.

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