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]