T-Mobile's Legere, Sprint's Claure tout benefits of their merger before Senate committee

T-Mobile's Legere, Sprint's Claure tout benefits of their merger before Senate committee
Testifying today before a Senate Judiciary Committee that focuses on Antitrust matters, T-Mobile CEO John Legere and Sprint Executive Chairman Marcelo Claure gave reasons why their $26 billion merger needs to be completed. Legere told the Senators that the nation's two largest carriers, Verizon and AT&T (he didn't call them 'Dumb and Dumber' like he usually does), have advantages that T-Mobile and Sprint can't compete with unless the third and fourth largest carriers in the states can combine forces.

The executive added that the combined T-Mobile-Sprint would raise its overall headcount despite cutting 3,295 full-time retail jobs through 2024. Some part time positions and distributor jobs would also be lost.

Claure pointed out in his testimony that over the last ten years, Sprint had lost more than $25 billion. During the years 2011 to 2017, the number of employees dropped from 40,000 to 30,000. Even though Sprint was in the black last year for the first time in 11 years, it still carries a massive $32 billion in debt. And to make matters worse, Claure said that Sprint is "unable to spend at parity with Verizon and AT&T, much less catch up to their previous investments."

The committee's ranking Democrat, Senator Amy Klobuchar of Minnesota, wanted to know whether the combined T-Mobile-Sprint could raise prices to a level just below Verizon and AT&T and still keep their existing customers. Claure answered that the only way for the combined carrier to gain enough market share to fill the higher capacity of its new network would be to lower prices.

T-Mobile, under Legere, has blossomed into the most innovative of the four major carriers. But this is exactly the reason why one advocacy group thinks the merger should not go through. Gene Kimmelman, president and chief executive of Public Knowledge, said that if the deal is completed, T-Mobile will no longer feel the need to disrupt the industry and have to fight for customers.

The T-Mobile-Sprint transaction must be approved by both the FCC and the Justice Department before the transaction can close.

source: Reuters



5. bohmcj

Posts: 12; Member since: Mar 19, 2017

Worse case scenario, the government can force a carrier to break-up. They did it before with Bell. Not an ideal situation, but if it ever got that bad there are options.

3. kanagadeepan

Posts: 1291; Member since: Jan 24, 2012

3 strong carriers is much better than 2 ridiculously strong + one Uncarrier + one ridiculously weak carrier, imho. Consolidation is good for the industry, or at least in this case. It is NOT like, those 2 strong carriers feels threatened, after looking at what they say about this merger. If having 3 carriers is looking like dangerous scenario of less competition, then after few years, there will again be 3 carriers (after sprint biting the dust) with not so strong T-Mobile -- more dangerous, imho..

4. tacarat

Posts: 854; Member since: Apr 22, 2013

Yep. It's not a monopoly, it's a duopoly right now. Even merged they'll still be smaller than AT&T. MNVOs like Sprint and T-Mobile. They would stand to benefit from the improved coverage. I like that Legere's sound bite. I'm sure somebody wanted to make a commercial out of it for the top two.

6. MartyK

Posts: 1043; Member since: Apr 11, 2012

Terrible idea, from a customer prospective. If Sprint and T-Mobile really want to compete, stop making dumb deals. 5G, they can do what is called Cross roaming agreements, that way both customers can use each other 5G services.

1. Alcyone

Posts: 647; Member since: May 10, 2018

Look at Canadian prices. I've come to my own conclusions.

2. DigitalBoy05

Posts: 280; Member since: Jun 04, 2011

You pay my hospital bill and I’ll pay your cell phone bill. Fair enough?

7. Alcyone

Posts: 647; Member since: May 10, 2018

Insurance, anyone? Haha, I have a 9 month old, you wanna pay my medical bill(s)?

8. Alcyone

Posts: 647; Member since: May 10, 2018

And try to troll harder next time. Yeah medical costs more, always will, period. Cellular, is not worth more, it's actually worth less.

9. tuminatr

Posts: 1185; Member since: Feb 23, 2009

pay it in insurance or in taxes whats the diiferance

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