CEO Dan Hesse Says Sprint Will Appeal AT&T Buyout of T-Mobile, Deal Will “Stifle Innovation”


T-Mobile subscribers worried about the future of their network aren’t the only ones showing concern over AT&T’s planned buyout of the wireless carrier. Sprint CEO Dan Hesse has come out saying his company plans to file an appeal with Congress during the deal’s review process, citing the “tremendous” power the combined AT&T/T-Mobile would hold. He also points out that combined with Verizon, the companies would amass a 79 percent grip in the market, leaving a smaller slice of the pie than ever for Sprint.

Sprint share took a 14 percent dive after news of the merger broke, but his company’s well being isn’t the only thing Hesse is concerned about. He believes the narrowing of market competition will “stifle innovation.” AT&T’s senior executive vice president Jim Cicconi responded to Hesse, stating, “We feel policymakers will readily understand that any company with whom AT&T competes may not be especially positive about anything which makes AT&T a better competitor in the wireless market.”

[via Bloomberg]

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  1. He is a vagina. Verizon stood up, said bring that shit!

  2. Sprint don’t worry about it and allow Google to buy you out. Think about it, wouldn’t that be a bad ass idea.

  3. Good for you Sprint, Verizon should do the same. The wireless carrier market already doesn’t have enough real competition with the FCC auctioning off bandwidth to private companies.

  4. Hopefully, the government won’t let this deal go through.

  5. Definitely a good plan make Washington D.C think real hard on this one knowing full well they would clearly benefit from this disaster. Personally thing would be better if they remained the same 4 carriers everyone slugging it out. All at&t wants to do is aquire tmobile all because they can’t finish financing building there own 4g network all they want is tmobile’s spectrum. Tmobile customers should not have to be forced to become a customer of at&t due to this merger. One thing is clear Mr. Hesse know’s exactly what he is doing and he is not the only one doing this. Tmobile should remain tmobile.

  6. Sprint, who I left 5 years ago for sucking, are the ones now fighting for me? I don’t know how I feel about that. One the one hand I want to cheer and on the otherhand, it’s Sprint!

  7. Good for Sprint. Monopolies and Duopolies are BAD for the consumer. Furthermore, T-Mobile is a good company and AT&T sucks balls.

  8. Jim Cicconi, what a tool. Hesse is right, and Verizon taking a blind eye is probably going to hurt them some day. It’s been a few years since I was a Sprint customer, but it looks like they are the new “family” carrier that T-Mobile strived to be. I like what Hesse has to say about “unlimited” in their new commercial, puts Verizon and AT&T right into perspective. If this deal goes through, I’ll be heading back to Sprint, maybe picking up the new EVO 3D to replace my G2.

  9. Funny, I have been a T-Mobile customer for 6 years. I heard about the merger on Sunday and pre-ordered a Sprint Nexus S 4G on Monday.

    I should buy some sprint stock while it is low. With the EVO 3D hype the stock should make up that 14% around release time.

  10. T mobile customer here and I’m cheering for Sprint

  11. This would have been much better if sprint had taken over tmobile

  12. This is real bad and its a good thing sprint and other voices around the country speak up against it. I hope smaller carriers do the same. Your talking about 2 major carriers holding alot of network real estate and controlling who can prop up anything on their Towers. Besides that point, your talking about our generation and future generations turning towards Mobile Broadband as the next wave and as the first source to spread news and information. These companies are pushing towards it and i know alot of ppl who would be willing to shed their landline connections in favor of a mobile one where you could connect a device to your cell phone, as long as it was solid. So far its improving and will be reliable.

    Take into consideration you have a handful of major cable providers, a Few Wireless providers(ATT,VZW,Sprint) that provide internet access to the country.

    and last point: Congress thinking about enacting a bill in case of an national emergency to cut all internet connection.

    YEAHHHH, this is no good for the near future. If this goes thru expect Tmobile users to drop ATT quick n go to VZW or Sprint as alternate sources. VZW doesnt care cuz they know many will flock to them in a mass exodus. Sprint will most likely have many flocking to them. The issue is innovation, consumer rights and competitive pricing… issue is the future and Control of such sources such as the internet and telephone communications, between so few companies.

  13. Thank you Sprint, for giving us at tmobile a voice.

  14. We, T-mobile customers need to petition this deal.

  15. An appeal with Congress? You kidding me? Congress doesn’t sign off on these deals, the FCC and DoJ does.

  16. So let me get this strait, sprint refused to merge with T-mobile so save at least one of the sinking ships? The parent company of T-mobile made a smart move for their company by agreeing to sell t-mobile. Buying t-mo is a good move for AT&T because it will expand their infrastructure. The merger is good for AT&T customers, because it will increase their coverage. It is win/lose for Tmo customers because it will greatly increase their coverage, but slightly increase their bill as well. Bad for Verizon because AT&Tmo with have more coverage and more users then them. However, if they play their cards right they can aquire some of those tmo customers. Sprint has always had crap coverage and service, so this would force them to make much needed improvements or sell out. For UScellular, currrently 5th, will move to 4th by defult, making it a contender. They could also focus on getting some of those tmo customers and possibly move up to 3rd place.

  17. Dan Hesse, thinking not only of his company, but now his competition. Lest we not forget he’s bringing up the struggles of competition and innovation with their being less carriers. Dan Hesse, a family man nonetheless. I say, let Google come into Sprints picture and not worry about AT&***T. Hopefully the FCC is smart enough to realize this can cause a lot of problems with the consumers. Not to mention all of the people who refuse to go the Apple way.

  18. You go, Dan. If this happens I will be going to Sprint, the only other carrier I can stomach. What’s all this about google buying Sprint? I was hoping they’d outbid ATT for Tmo, that would be a match made in heaven

    @scuroraven Sprint did not refuse the Tmo merge, Tmo got a better offer fron ATT and went with it.

  19. Verizon is not complaining because they want to let this go through, so they can buy Sprint. Yes, I know they say they are not interested, but they know if they try to buy Sprint now, the FCC has a higher chance of blocking both deals. If they sit back and let the AT&T/T-Mobile deal go through, then they would be able to complain if the FCC tried to block their Sprint buyout. Think about it. All these greedy-ass carriers want to do is eliminate competition so they can bend us over and there’s nothing we can do about it. Go Sprint! I’m behind your appeal every step of the way!

  20. I know people think AT&T is horrible, but the same can be said about VZ too. There is really little difference between the two, it mostly depends on location. AT&T crippled non-iphone to make people believe that the iphone was such a great phone. (( everyoe except fanboys know otherwise)) with their contact up with apple, their other phones should improve. ((Pending updates)) If the merger goes through the deals Tmo have with android are suppose to carry over to AT&T. This will mean increased compation between the two companies and could lead to better benefits for the consumers.

    Personally I find it interesting that, on here, I read people complaining about AT&T but I hear more people complaint about the other companies, mostly VZ, in person. As far as dropped calls go, it is primarily the iphone users that I hear complaining. Then again around here even cricket works better than VZ.

  21. According to several people I know that work for t-mobile, they were informed that t-mobile’s parent company was trying to buy sprint, but could not come up with an agreement. T-mobile wanted to stay in USA, but as it is, not cost effective for it’s owners. So, considering sprint is a relatively small company compared to tmo parent company, buying sprint would of made much more sense then selling to sprint.

    However, technology wise, selling to AT&T makes much more sense.

  22. As much of a pipedream as Google buying Sprint would be, it would make the most sense for Google. Sprint has more spectrum than Verizon and AT&T COMBINED thanks to the Nextel acquisition. If you Google could acquire Sprint on the cheap they would be set. But the FCC would never let that deal go through…too bad though.

    In a perfect world, I say let Verizon and AT&T have the iPhone and Android users can use their phones on Google Wireless.

  23. Not many people remember the Maa Bell days, but this buyout represents AT&T getting closer to that goal again. Sprint should fight it, but even if they didn’t I don’t think it will get approved…

    Oh wait we are talking about dirty, greedy politicians who want nothing more than money in their pockets. Nevermind deal is done.

    I also agree with a previous comment about Verizon playing the waiting game on this. They have the best network and speculating now that they would buy sprint makes investors reach for the highest amount they can get which will make Sprint look more valuable than what Verizon may be willing to pay.

  24. Personally I am for more of an open coverage kind of thing. Phones should work for all carriers, no contracts. Only real downside would be for the companies because they would have to provide real customer service. Currently T-mobile and uscellular are the only ones that provide any noteable customer service.

  25. RE: scuroraven

    I agree, I hear just as many bad things about Verizon being evil as AT&T. As far as data capping, Verizon has openly stated they are going to cap data in the near future (just like AT&T already does). What people fail to realize is that you can talk retentions into putting you on a grandfathered plan (ie unlimited data for $30) on a new contract if you ask the right way because in the end the salesperson wants the sale and retentions has the power to do it. I have got put on grandfathered plans as a new customer on several different carriers, all through retentions.

  26. I think the buy out is ridiculous. I switched from AT&T because they have horrible customer service. Now I have to go back to it?! I don’t even have AT&T home service anymore because I was so unhappy with the way they treated their customers. T-mobile is a good company who appreciates their customers, it will be a sad day when this transaction is complete.

  27. RE: scuroraven

    Actually Sprint has some really good customer service lately. Ever since Dan Hesse came in they made Customer Service one of their biggest priorities. I have found that they will fall over backwards for you just in an effort to shake the former image of their horrible customer service. Level 1 CSR’s on any carrier are generally hit or miss because of varying levels of competency, but on Sprint if you call Executive Services or Retentions with your problems they will be more than accommodating.

  28. So if it goes through, it will take a year or so to do the network stuff but how long would it take something like this to be approved?

  29. Wow that’s something new, @ksizzle insulting someone.

    Go get em Danny!

  30. WOO sprint, i love you for trying to save tmobile, even if it to help your company out too but wooo

  31. @scuroraven USCellular being 4th still would not be a contender. USCellular ranked 4th in a 4 man race would not be a contender. It would take 8, count them, 8 USCellulars to be a lessor contender on the level of an AT&T, Verizon,or Sprint. USCellular does not lacks many of the compentancies to manage at the level of the “Big 3”, so to speak. Furthermore, I think you’re missing the forrest for the trees. The sheer size of the resulting “Big 2” would make USCellular and any remaining companies irrelevant. Like Hesse says, they would stiffle any competition or innovation for the consumer because they no longer have to compete addressing those aspects of business.

    In the cellular game you grow the business either by sales and marketing efforts or buy acquring customer base. And acquiring customer base is what AT&T and Verizon have been doing to grow the business the last several years. Again, with the sheer size of the customer base they are leveraging margins on the way to huge profits. You don’t have to be innovative, customer focused, price competitive, or any of those things when you have 79% of the market. You can basically sit on your ass and make money. That’s the problem!

  32. Thank god sprint

  33. Sprint… Verizon… Cricket…. Metro PCS… US Cellular…etc everyone take note and please appeal this…

  34. @Whocares

    Very good perspective

  35. I want Google to buy T-Mobile. I would happily be a G-Mobile customer.

  36. As a loyal customer, In 3 months I was hoping to re-up with Tmobile and buy a Google phone to boot, But now, my disdain for ATT is such that I will have to wait and see if I need to flee to another provider.

    As for T-Mo, you better hope the DOJ doesnt drag its heels on this because you will lose a big ol chunk of customers in the mean time and if the sale doesnt go through, you will play hell getting them back with all that great early termination roadblock in the way. Its a cryin shame!

  37. Piss on verzion and Ass t&t

  38. I don’t think the fcc cares anymore, seems all they want is money. They let the nbc/comcast deal go down, why would they stop this one? I hope it doesn’t go through because I want to keep my job and not be a part of the evil empire

  39. lucas you’re right. See 39 Billion dollars and most people would say yes to anything.

    I expect a Duopoly between att and verizon soon.

  40. The problem is even if the deal does not go through Tmo is a money losing operation that will try to find another buyer. Sprint is managing to add customers while tmo is loosing 3% every year. I like having various carriers and just swtiched today to tmo from At&T hoping i help the underdog. If anything, sprint is the lesser evil.

  41. I agree with Dan. I left ATT for a reason and its similar to why I won’t go to Verizon. Too damn pricey. Once this happens it’s only a matter of time before TMO is completely gone and all its plans are too.

  42. Danny should be happy for this deal, not trying to block it. What’s the most common comment here? “If this deal goes through, I’m going to Sprint”. They have an opportunity to add to their customer base with all these people threatening to take their business to Sprint and he’s trying to block that from happening??

    I just don’t get it…

  43. Shannon, the problem is that if this merger is approved, who will stop Verizon from buying Sprint? They may say they don’t want to, but they are full of shit.

    Then you have 2 national carriers. That would be a travesty.

  44. Dan Hess is a joke. If you can’t stand the heat, get the hell out of the kitchen. They already rip us off anyway, so what is the difference????

  45. I think if people really start complaning that this could have a chance of not getting through. Where is the petition people can sign agains the deal?

  46. Sprint stop whinning and Man Up!

  47. I’m all for Sprint on this one. I couldn’t agree more with SIGINT, Monopolies and Duopolies are bad, and AT&T is a company that sucks and T-Mobile does not suck. Hopefully the government won’t let this one go through. But that all depends on the “lobbying dollars”. It’s a wonderful world we live in, isn’t it?

  48. without competition, prices go up and innovation dries up. give um hell sprint!

  49. Whatever! Hesse used to work for AT&T for (23 years) – it’s personal.

  50. To: Dan Hesse

    You need that Sprint closes an agreement with Samsung to expand aggressively the WiMAX network, bring all those Tabs and the get the Galaxy S II exclusivity… and you will get the rest of T-Mobile users.

  51. @ Barry > I think that’s a great Idea… Bravo Sir.

  52. YES!! Kuz sprint doesn’t Data kap at all, compared to AT&T data kapping at like 2GB every month. -_-

    I’d prefer Sprint, but I hope I kan still use my SIM kard, or that there 4G gets more battery friendly. o.O

  53. I really like the idea of a G-Mobile! come on Google!! The thought of being an At&t costumer just make me wanna puke!!!

  54. I left AT&T for T-Mobile, vowed to never return to AT&T. My husband has them, the boys and I T-Mobile. We have no problems, he has a lot of problems from high prices for services far less than we have to no service and many customer service issues. Please don’t let this happen.

  55. The FCC should regulate and create one standard for 3g and 4g, and let subscribers use phones on any carrier. Then we will see which companies lower prices and give better deals. Level the playing field and the consumer wins!

  56. @Verizon Blows : Good idea but who is to listen?

  57. @Diego, your posts are confusing. TMO US hasn’t been loosing money for DT-just not producing DT’s desired result, which DT, will ultimately, regret. Such are the times; however, this acquisition gives TMO US a huge advantage should it not be approved: 3 billion dollar breakup fee, tower sharing, etc. Big gamble for at&t-makes me worry that it will be approved.

  58. If ADT can buy out Broadview (Brinks), I’m pretty sure this acquisition will be approved. He should think of it as a good way. Tons of people hate AT&T and they will go look for another company. I’m still in shock and I’m with T-Mobile. I’m about to go with Sprint because I hate AT&T so he’ll have one more customer. :)

  59. Everyone hates on AT&T, yet it is still the number 2 carrier in the US, right behind Verizon. Why is that, do you think? If AT&T was really that bad, they wouldn’t be as big as they are and wouldn’t have the customer base they still have, especially with the release of the iPhone on Verizon. There’s no longer a binding reason for Apple fanboys to stay with AT&T as their precious phone is available elsewhere.

    The same things can be said of companies like WalMart. People bitch about them and refuse to shop there, yet they are still the number 1 retailer. Even Microsoft…the maker of the number 1 operating system in the world. Many people hate Windows and migrate to Apple, but Apple’s numbers still pale severely in comparison to the number of Windows computers in the world.

    I think South Park said it best with their Starbucks parody episode. T-mobile customers and the lot can bitch about this merger all they want, but if it happens, just go elsewhere if you really want to (if terms of the merger allow you to…or if not, leave when your contract expires).

  60. i have virgin mobile. i know my internet plays hide and seek sometimes BUT other than that i have ZERO complaints. i pay $25 for 300 mins which is better for me, because the next package is $40/1200mins Which is TOO MUCH! because the past three months i used under 320mins, and on ALL plans you get UNLIMITED text pix email data and web, so all you gotta do is choose your talking: $25/300mins, $40/1200mins OR $60/UNLIMITED mins

  61. why you people hate at&t? i wish the usa had ONE cellphone company: virgin mobile,

  62. U mad?

  63. As said before…If there’s no competition PRICES WILL GO UP. We already have unlimited data plans being scratched so the carriers can get overage charges they use to get from overage minutes. This is bad for everyone on every remaining carrier PERIOD!!!

  64. If AT&T merger is successful I will switch to Verizon!!

  65. @Androidess:

    Hi, thanks for the comment. Yes, you are right, Tmobile is still making money but profit keeps slipping. Basically, what i am trying to say is that i favor having more choices than less and in order to support the cause i just made the switch from att to tmobile.

    As you expressed the usa operation hasn’t produced the desired results and as such if the this present deal doesn’t go through, DT will still try to find another buyer i believe; sprint perhaps .

    I hope the regulars turn the deal down and tmobile usa continues to exist.

  66. I think this fusion won´t be good for Android.
    Do you know the market will be open to AT&T with all the T-Mo users to offer the iPhone when your plan be over?
    AT&T never has been a good Android offerer.

  67. Good for Dan Hesse. I think it is a terrible merger and At&t is only number one because of the money they have massed. They are not a good quality phone service provider.

    1. Sprint needs to be more innovative and creative. They need to have top notch employees who know the recent technology. Kansas City is so remote and Sprint needs employees from high tech metropoitan areas so they can compete.

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