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

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

FEATURED VIDEO

55 Comments

58. hooher tod unregistered

Yes there should realize the reader to RSS my feed to RSS commentary, quite simply

57. richardyarrell unregistered

Sprint has every right to be against this merger just as many others are. If at&t was able to afford 100% coverage of 4g they would'nt want tmobile's spectrum. Bottom line here if current people on tmobile wanted to be on at&t they would've selected them. regardless of credit people choose which carrier they want to do business with rather your credit is bad or good people will pay for what they want. If this merger happens sprint actually stands to benefit from the MASS EXIT THAT WILL EXIST when customers come from tmobile to sprint because they will be the LAST MAN STANDING as far as AFFORDIBILITY and they are loyal to android which at&t could care less about. Tmobile customers will be happy with the android devices on sprint and will benefit with the use of true unlimited no data caps. I'm sure Mr. Hesse know's this in his mind but their is nothing wrong with the way things are today. The old saying is if it's not broke don't fix it sprint afforded their 4g roll out at&t should handle there business

52. G2userLuvit

Posts: 23; Member since: Apr 09, 2011

This in no way could slow device innovation as the manufactures dont work for att... no last i knew htc and samsung were thier own company, The merger will however probably do away with sprint in the end. That is why Dan Hesse is speeking out.

49. networkdood

Posts: 6330; Member since: Mar 31, 2010

Wow, a 'phone' company nickeling and diming someone....lol, just watch your bills, and check out competition to see what they are doing. Consumers have a choice now and will have one after the deal goes through. 130 million people on one network is not a big deal. The country is rather large and alot of those millions are concentrated in metropolitan areas, where companies should...SHOULD...beef up their networks. This is not like the tiny Euro countries. Funny that Hesse is against this deal. In 1997 he became CEO of AT&T Wireless and they went down the tubes. Watch out Sprint....lol

46. kolevdimo

Posts: 4; Member since: Mar 02, 2011

Again BRAVO NICK - I really hope the United States government to block this anti-competitive acquisition.No competition No innovation like hi said - will result in slower network and device innovation.Increase or Lower the prices who know ??? After having monopoly WHO is going to be them competitor? I'm against on this purchase.Like NICK said : - 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.

42. 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

50. networkdood

Posts: 6330; Member since: Mar 31, 2010

Yeah, you are not who you say you are. 'Your' Daddy's AT&T? Reliable download speeds? Your would have to be referring to AT&T Wireless, because before that AT&T was just an old fashioned phone company, and they did not have DSL or wireless to speak of in the 1950s. AT&T Wireless? Yeah, reliable they weren't...just ask DAN. Or, do you mean AMPS? Aka Advanced Mobile Phone Service? That started out as a subsidiary of AT&T starting in 1978. That network was shutdown by the current AT&T along with TDMA. Both were reliable, for voice. Both are outdated for data use, so I am not sure how you get 'download speeds reliable' (sounds like Yoda talk). Also, in 2004, Verizon's parent company sought to purchase old AT&T Wireless, and instead CINGULAR bought them out. Imagine that.....of course, I am sure there were more companies back then, but that merger made CINGULAR the largest at that time. Things turned out ok over the next few years after that merger.

55. kcombs

Posts: 275; Member since: Dec 15, 2010

well spoken man.

41. Jyakotu

Posts: 868; Member since: Dec 12, 2008

Honestly, Dan Hesse needs to be worrying about improving Sprint's network and WiMax. Sad that Verizon just launched it's LTE network and is already faster than WiMax, which uses a 2.5gHz spectrum, while Verizon's LTE network only using 700mHz. And people need to stop with this "less competition" nonsense. AT&T will NOT be the only GSM carrier in the United States. There are plenty of smaller regional, MVNO, and prepaid carriers that use AT&T's and/or T-Mobile's GSM network. And also, as we seen with the Verizon/Alltel buyout, AT&T is more than likely going to have to divest some of its markets off to other carriers. Sprint could benefit from this, if they look at the bigger picture.

33. networkdood

Posts: 6330; Member since: Mar 31, 2010

This deal may help SPRINT as many T-Mo customers may leave to a company, such as SPRINT, that offers similar deals on their plans/features. Or, AT&T gets smart and offers lowers plans - this may explain why AT&T introduced free unlimited mobile to ANY mobile plans with unlimited messaging and nation 450 39.99 plan or family talk nation 700 69.99 plan. Nice thing about AT&T is that they do offer lower data plans, albeit, not unlimited, which is similar to T-MO. Do not get worked up over this deal as it will not signal the end of civilization as we know it.

16. FunnyPhoneGuy unregistered

Hey Dan Hesse stop bitchin lol

15. Firelock unregistered

Finally, someone who actualy gets it. Yes, it is called capitalism, that what makes America the best country in the world. When you produce services that people want, you succeed in the marketplace. Enough teaching for the idiots who know nothing about buissnes. I personally can't wait to get my hands on the EVO 3D and the HTC sensation with that sweet sense 3.0 UI. It looks awesome!!

22. tragichero

Posts: 163; Member since: Jan 07, 2011

comment 9 and comment 15 are false. see comment 19. this will create a lack of innovation because as you know the point of business is to make money. less competition less growth. whats the point of creating something different if you know you can make money off of a cheap product because people will have to buy whats available. if there are only two providers they will only barley have to battle each other. everybody needs phones. they can make a piece of poop and make money as long as there is no one else doing different..... and if that makes the most money thats what will be done.

9. kcombs

Posts: 275; Member since: Dec 15, 2010

Deutsche Telekom has been trying to dump T-mobile for a while now, because profits are not good. ATT is trying to help by saving a company that is not doing so hot. if i recall T-mobile lost 30,000 subscribers in the 3rd qauter of 2010. so they are hurting a bit, it's a good move by ATT. it will help in the long run for customer base, and groth of the smaller carriers. this will force Sprint to increase their network covrage and expand to new markets, i e more jobs in the US and more compatition.

32. networkdood

Posts: 6330; Member since: Mar 31, 2010

Someone with some intelligence...lol...the job creation part may not happen right away...

40. elandrumiii

Posts: 109; Member since: Mar 20, 2010

Tmo USA accounted for 25% of the companies total profits. They just didnt want to invest in it properly or at the right time. They had the money. Thus the term "it takes money to make money". Lets not forget that Verizon was the result of over 5 mergers and AT&T was the result of about 5 mergers also. Alot of you sound like the current crop of republicans who want to get rid of everything but the tax cuts for the wealthy and big business. We]hen all these mergers and cuts hit home you will finally get it. There will be tens of thousands of jobs lost and that has been AT&T's trade mark everytime they buyout some one just like the Sprint Nextel merger. The result for the customers of the company that got purchased. Higher rate plans.

48. networkdood

Posts: 6330; Member since: Mar 31, 2010

I actually dislike both leading political parties. This deal will not lead to higher rate plans. Sprint will be around, so will MetroPCS and CRICKET and LEAP...This deal could actually drive a few million customers to lower priced products on other companies, thus possibly leading AT&T to cut their prices, which in turn would pressure Verizon to do the same. Now, AT&T could make it T-Mo cheap to stay on the network, and then once they drive other companies out of business, they could then raise prices again...it is a little complex then you make it out to be, but in the end you could be correct.

51. kcombs

Posts: 275; Member since: Dec 15, 2010

that's not all true, some people get the boot. i work at an att call center and there are people still working here from Cingular, and this call center happens to be an old Cingular call center. the one north of us is an old AT&T wireless call center. yes they do weed out the poor performing reps but i work with people that have been with the company since it was Cingular some over 20 years.

8. nite unregistered

It doesn't matter if this deal goes through or not if it does another gsm carrier will probably come along and grow to making more jobs and this country needs that.

19. tragichero

Posts: 163; Member since: Jan 07, 2011

i dissagree with that statement. why do you think sprint is worried? its because 80% of the market is taken.... it would be extremely difficult for sprint to grow even with 20%, how do you expect a company that has to start from somewhere like nowhere to begin growth and surpass the big two without being bought out once again. if att buys tmobile, verizon can buy whatever cdma carrier it eventually wants..... or att buying out another gsm carrier. it sets a trend that paves the way for deals like this to continue. plus with republicans gaining momentum you can expect more deregulation on big companys thus allowing such monopolys or duopoly whatever you want to call it. this is the problem with the free market and capatalism.

7. downphoenix

Posts: 3165; Member since: Jun 19, 2010

Fight the good fight Dan! Supporting you every step of the way. Unfortunately its a lost cause, Im sure Verizon and AT&T have more lobbyists to buy representatives with.

18. tragichero

Posts: 163; Member since: Jan 07, 2011

well although that may be true.... its not like verizon is stepping in on this at all so whatever implication of verizon lobbyists effecting this deal is totally false.

36. downphoenix

Posts: 3165; Member since: Jun 19, 2010

no, verizon wants this to happen, because they know they will win customers from this, that's why they are not stopping AT&T from doing the merger. They also know the Iphone was a big win for them recently and that the tide will be turned for them likely in a year or so when most current Iphone users are out of contract.

6. vvelez5

Posts: 623; Member since: Jan 29, 2011

Butthurt much? I'm sorry but this is true capitalism at its finest.

4. ecml

Posts: 129; Member since: Mar 23, 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...

24. phone333

Posts: 331; Member since: Feb 04, 2009

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

27. ecml

Posts: 129; Member since: Mar 23, 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.

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.

34. ILikeBubbles

Posts: 525; Member since: Jan 17, 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. :)

35. downphoenix

Posts: 3165; Member since: Jun 19, 2010

or compete as much for the quality of service.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.
FCC OKs Cingular's purchase of AT&T Wireless