Sprint plans to appeal T-mobile takeover by AT&T

Dan Hesse, CEO of Sprint has said that the company plans to voice their concerns over the proposed takeover of T-mobile USA by AT&T. The primary concern by Sprint is that the deal will hurt the wireless industry and that if an acquisition happened AT&T and Verizon Wireless would hold ‘tremendous’ power as between them, they would hold 79 percent of the U.S wireless market. He feared the takeover would stifle innovation with less competitors being in the market.

The deal which is worth $39 billion, has stirred a lot of controversy with hope by many that the government intervenes and discloses the deal. Yesterday Sprint shares fell 14 percent because of the announcement which would have come as a shock as Sprint was also in negotiation talks with T-mobile USA with the intention of buying.

Yesterday the U.S. House Judiciary Committee said it would hold a meeting to discuss the takeover and look at ‘possible anti-competitive impacts’.

In response to Hesse’s concerns, AT&T senior executive vice president Jim Cicconi via an emailed statement in which he said “We understand Sprint has concerns, and we’ll be happy to address any they present, whether at the Justice Department, the FCC or the Congress,” later followed by “We feel we have good and compelling answers. And 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.”

At the wireless industry conference in which he made the comments, he told his audience that it would give AT&T too much power in the mobile market however he refused to answer questions when asked about whether Sprint had held talks with T-mobile.

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Sprint and Verizon both run on CDMA networks, whereas AT&T and Tmobile run on GSM networks. They dont want other companies merging. They might lose out on that extra cash...from all the phones customers have to buy since they love to make it difficult and make it impossible to transfer. They are all about profits and care nothing of theyre customers. Sprints customer care? joke! Profits First, Consumers Last! < new logo i think

Sprint and Verizon dont want others merging for fact they will lose profit. Sprint and Verizon both run on CDMA networks, whereas AT&T and Tmobile run on GSM networks. So dont forget when u break that sprint phone or lose it, be sure to buy another one from them. Wireless backup, oh yea greaet service...oh ye we just put that on your bill every month for you.. afff PROFITS FIRST, CONSUMERS LAST!!

Many moons ago Nextel swept me away with superior call quality and then with their unlimited free incoming plans right at the same time I could no longer deal with the dropped calls with Cingular and GTE (now Verizon). I then got sucked into the Sprint machine through the buyout. While far from a fanboy, I stick with Sprint mainly because I cannot stomach having to deal with any AT&T company again.

While I clearly understand the anti-competitive concerns regarding a AT&T / T-Mobile merger, with all of Sprint's financial losses, I think a Sprint / T-Mobile merger would at minimum result in a further cash-strapped company with major problems. More likely, I would think that it would ultimately knock out two lesser competitors so that we will be left with AT&T and Verizon as the two remaining mega carriers.

Exactly. It's better for a larger company to gobble them up because then Sprint only has to worry about themselves AND they'll be the preferred low cost contract service. It does make me nervous though because Sprint used to be the carrier with the highest account deliquency until everyone went to T-Mobile. Hopefully they can't come back.

I have never liked At&t for anything but I hate cable companies more so I have At&t internet. When I had a home phone I used Sprint as a l,d carrier and back in the pager days I had sprint service.I have been a Sprint cell customer for over 14 yrs. I personally have never had issues with cs, but when I goto a local store thats when I have problems. Most of there sales peeps are real jerks. It sucks that the such a company as At&t is buying up phone companies they are destroying the industry.

Sprint should be scared. They will be at the bottom. It's a shame because Sprint's service is much better than AT&T and T-Mobile. However, Sprint protesting this won't make much of a difference in the end. Let's look at it this way. If AT&T and T-Mobile merge, it will take about a year. However, if they don't merge, I give T-Mobile about 16 Months to exist as a company. There service is horrible and they keep bleeding out customers.

Either way, in two years time it will only be Verizon, AT&T and Sprint as the big players. That's my prediction.

Sprint should just spend 1-2 billion dollars and offer all Tmobile users a contract buyout if they switch to Sprnit and leave att with a 39 billion dollar overhead.

Sprint has been great for me, good coverage, unlimited data and text, low rates compared to ATT and Verizon, hard to believe they have such a low user base.
I had ATT for around 3 months back in 2009, I went ahead and breached contract and paid the early term fee just to be rid of their pitiful coverage, high prices and abominable CS.
Verizon had good coverage but high prices, when my contract was up I ported my number to Sprint.

The only real complaint I have about Sprint is their abysmal phone selection.

I don't wanna see Sprint buy T-Mobile because it would be a disaster. Buying Nextel almost killed them and was a giant pain for everyone involved. However, I do like the suggestion of a poster above a lot. If customers port over their number from T-Mobile, they can get a free phone, and a better plan. That immediately gives people incentive who can jump, and then AT&T's true intentions would come out. If they're only doing this for the spectrum and towers, they won't care about losing T-Mobile's customers en masse.

Well i think the Sprint pre paid should included together with Sprint in that chart. Also, if the deal does go through, do you think we could see a sprint buyout of US Cellular? and/or maybe Cellular South as well? That would also help them and would be easier to implement them seeing as they are already CDMA. And US Cellular seems to be a good buyout target at this time as well.

oh lord, no merging between spring and verizon. is overpriced and i use virginmobile own by sprint I like my 40 dollar month deal so keep it away from verizon...

I support Sprint all the way, this merger will bring disastrous results for the wireless market in general if approved.

@Davo
If it's anything like the Cingular/ATT merger, then prices will go up fairly fast, they'll find any loophole to raise your rates ASAP, ****ed me off to no end and I left ATT after that happened

http://blogs.wsj.com/deals/201...l-have-40-of-mobile-market/

This is from the Wall Street Journal (Currently)

Verizon 31.3 %

AT&T 26.6 %

T-Mobile 12.2%

Sprint 11.9 %

TracFone 6%

Sprint Pre-paid 4.2 %

MetroPCS 2.8%

US Cellular 2.2%

So if you combine both of Sprints services they are at 16.1% and in 3rd place. If you then add T-Mobile they get to 28.3% . At that point it would be a 1/3 break and there would be 3 major service providers in the US.

If AT&T gets T-Mobile you get 38.8 % at the new AT&T and 31.3% at Verizon giving you only 2 major players and a lot of "little bits" including Sprint.

I can completely see why Sprint would not want this to happen.

I do have a suggestion for Sprint PR, how about - "All T-Mobile customers can exchange their current phones with an equal Sprint phone for free". Considering how many people hate AT&T I think they could jump get a boost in customers. (If you see this Sprint you are more than welcomed to use it)

*Disclosure - I'm a happy Sprint customer.


TechGuyPA said,
http://blogs.wsj.com/deals/201...l-have-40-of-mobile-market/

This is from the Wall Street Journal (Currently)

Verizon 31.3 %

AT&T 26.6 %

T-Mobile 12.2%

Sprint 11.9 %

TracFone 6%

Sprint Pre-paid 4.2 %

MetroPCS 2.8%

US Cellular 2.2%

So if you combine both of Sprints services they are at 16.1% and in 3rd place. If you then add T-Mobile they get to 28.3% . At that point it would be a 1/3 break and there would be 3 major service providers in the US.

If AT&T gets T-Mobile you get 38.8 % at the new AT&T and 31.3% at Verizon giving you only 2 major players and a lot of "little bits" including Sprint.

I can completely see why Sprint would not want this to happen.

I do have a suggestion for Sprint PR, how about - "All T-Mobile customers can exchange their current phones with an equal Sprint phone for free". Considering how many people hate AT&T I think they could jump get a boost in customers. (If you see this Sprint you are more than welcomed to use it)

*Disclosure - I'm a happy Sprint customer.


Keep in mind that AT&T also has several smaller cellular companies under their umbrella that they have either broken off (Such as prepaid carriers) or not fully assimilated (Such as regional carriers), which would also raise their percentage. I think I read that all together after the T-Mobile acquisition AT&T would have 43% of the market.

I just don't see this happening. If ATT buys out Tmobile, they become the only real viable GSM carrier in the United States. The same could be said if Verizon bought out Sprint. These are both horrible ideas. I don't see this even remotely passing antitrust.

azure.sapphire said,
I just don't see this happening. If ATT buys out Tmobile, they become the only real viable GSM carrier in the United States. The same could be said if Verizon bought out Sprint. These are both horrible ideas. I don't see this even remotely passing antitrust.

I sincerely hope that it does not. If it does clearly the government does not have the interests of the consumer in mind...

Consumers should be trying to stop the merger because AT&T has basically said they want to buy up the spectrum and customers, while "possibly" keeping the T-Mobile plans. It's an assimilation.

Davo said,
Consumers should be trying to stop the merger because AT&T has basically said they want to buy up the spectrum and customers, while "possibly" keeping the T-Mobile plans. It's an assimilation.

They wont keep the TMO plans at all. Maybe for a little while until users renew their contract. Other than that, they will not keep them.

Just sounds like something ATT is spouting off so customers wont leave.

Exactly. Everyone knows this isn't for some greater good or because AT&T needs it. They want to be the one, and possibly only, at all costs.

techbeck said,

They wont keep the TMO plans at all. Maybe for a little while until users renew their contract. Other than that, they will not keep them.

Just sounds like something ATT is spouting off so customers wont leave.

Do you know what being "grandfathered" into a plan means? So even when you buy a new phone on subsidy (which comes with a new contract), you keep you previous plan even if its not offered.

As someone who has sold cell phones for three years, that's not always the case. More often than not, you're required to take a new plan because either the technology has changed or because it creates too much of a backend hassle and it's easier to switch you. They can only change your plan with your approval, however, they also don't need to do anything for you except to continue providing service if you decide not to.

asdavis10 said,

Do you know what being "grandfathered" into a plan means? So even when you buy a new phone on subsidy (which comes with a new contract), you keep you previous plan even if its not offered.

Grandfathering is a courtesy not a right. When you get a new device and re-arm your contract you are signing a new contract. The terms of that contract CAN change (as you are signing whatever the new contract is).

AT&T can and WILL say they simply will NOT sign any new T-Mobile contracts and the old users have to either A) sign a new AT&T plan or B) leave when their contracts are up.

If you are out of contract they CAN send you a letter saying switch plans or leave at ANY TIME (with 30 days notice).

asdavis10 said,

Do you know what being "grandfathered" into a plan means? So even when you buy a new phone on subsidy (which comes with a new contract), you keep you previous plan even if its not offered.

ATT has done this in the past, but only if you remain on the same plan. If you ever add any service, you have to change to a current plan in order to do so. So if you want tethering, add a line, remove a line, unlimited text or something else, you lose your grandfathered plan.

asdavis10 said,

Do you know what being "grandfathered" into a plan means? So even when you buy a new phone on subsidy (which comes with a new contract), you keep you previous plan even if its not offered.

I would be willing to bet that you wouldn't be grandfathered in when the company changes... Just a thought...

The way I see it, T-mobile and Sprint have been floundering for a few years. I see AT&T buying T-mobile and Verizon buying Sprint as they are both similar in technologies. Will people complain as loud with a Verizon/Sprint merge??

T-mobile and Sprint have had little influence in pricing with AT&T and Verizon. Sure, they offer better pricing, but in my personal usage, they are inferior in quality and coverage.

I don't see the benefit of a Sprint & T-mobile merge, as they are different technologies. Someone is going to have to give up their phone and purchase a new one to be usable on whichever format the new company chooses to run the network on. Will doubt these people will be happy about it, just like it is now with the proposed AT&T merger.

Will be interesting to see how this plays out over the next couple months.

Drugar said,
The way I see it, T-mobile and Sprint have been floundering for a few years. I see AT&T buying T-mobile and Verizon buying Sprint as they are both similar in technologies. Will people complain as loud with a Verizon/Sprint merge??

T-mobile and Sprint have had little influence in pricing with AT&T and Verizon. Sure, they offer better pricing, but in my personal usage, they are inferior in quality and coverage.

I don't see the benefit of a Sprint & T-mobile merge, as they are different technologies. Someone is going to have to give up their phone and purchase a new one to be usable on whichever format the new company chooses to run the network on. Will doubt these people will be happy about it, just like it is now with the proposed AT&T merger.

Will be interesting to see how this plays out over the next couple months.

Well, the tech they use might be different now, but with the move to the next generation I think they could move to the same tech (Sprint is already using Wi-max and T-Mo hasn't chosen one yet, so this could be doable - but I think in the end both will eventually go LTE), so, for a while they may keep operations as is and migrate both networks to 4G.

Yea I hope this merger gets stopped, a T-mobile Sprint merger would be alot better in my eyes.

ATT sucks, their support sucks their service sucks and they keep nickel and diming everyone to death.

Sprint seems to have good support, good real unlimited plan and t-mobile seems to have alot of new devices they support.

Rather have the wirelsss market split evenly in 3 then have ATT with 80% of the market.

swanlee said,
Yea I hope this merger gets stopped, a T-mobile Sprint merger would be alot better in my eyes.

ATT sucks, their support sucks their service sucks and they keep nickel and diming everyone to death.

Sprint seems to have good support, good real unlimited plan and t-mobile seems to have alot of new devices they support.

Rather have the wirelsss market split evenly in 3 then have ATT with 80% of the market.

I agree with your points. But do not expect good support from Sprint. I had them for about a year and I couldn't even get them to correct a billing error when they charged me for like 30 phones... They refused to even review the bill to verify it was accurate, even though it should be pretty easy to ascertain that there *might* be an issue with a wireless bill of $ 14,000 and no overages... LMAO

Sprints only chance is to stop the merger. Right now sprints marketshare is 11%...It's predicted in 2 years it will be down to 5%

Melfster said,
Sprints only chance is to stop the merger. Right now sprints marketshare is 11%...It's predicted in 2 years it will be down to 5%

My god, I thought it was much higher than that!

Melfster said,
Sprints only chance is to stop the merger. Right now sprints marketshare is 11%...It's predicted in 2 years it will be down to 5%

Are these old figures? I just ask because the most recent figures I have seen from Sprint showed a bit of a resurgence in market share (Though slight), which makes the 5% prediction I think a bit light...

I will absolutely be leaving the at&t owned Tmobile. I'll have to buy a new phone anyway now, might as well buy it from another carrier - while there still is another carrier.

gark said,
I will absolutely be leaving the at&t owned Tmobile. I'll have to buy a new phone anyway now, might as well buy it from another carrier - while there still is another carrier.

Me to. My contract is over in August so if this goes through, I will be leaving AT&T-Mobile

gark said,
I will absolutely be leaving the at&t owned Tmobile. I'll have to buy a new phone anyway now, might as well buy it from another carrier - while there still is another carrier.

I'm a TMO customer as well and will leave if this merger goes through. TMO may not be the best mobile company but they are certainly nowhere near as bad as AT&T.

seb5150 said,

I'm a TMO customer as well and will leave if this merger goes through. TMO may not be the best mobile company but they are certainly nowhere near as bad as AT&T.

They have to honor all contracts so if merger doesn't get stopped, I still have my affordable unlimited data plan, and if it did go through and they tried to change terms of contract, they break it so I can leave it with no terminate fee (walk away), and choose a different carrier and if I let it run it's course and it no longer exists, I change service providers once it's up.

seb5150 said,

I'm a TMO customer as well and will leave if this merger goes through. TMO may not be the best mobile company but they are certainly nowhere near as bad as AT&T.

Yeah, no one's as bad as AT&T... I had them for like 3 months and that was MORE than enough... If I were with T-Mobile I'd be getting out as well.

The second this merger doesn't happen, Spring will turn around and get the merger they were trying to do going again. Politics as usual.

ILikeTobacco said,
The second this merger doesn't happen, Spring will turn around and get the merger they were trying to do going again. Politics as usual.

Probably, but I would much rather have Sprint and TMO merge. Promotes better competition/pricing and help even the playing field between Verizon and ATT.

ILikeTobacco said,
The second this merger doesn't happen, Spring will turn around and get the merger they were trying to do going again. Politics as usual.
A Sprint/T-Mobile merger would make each of the 3 carriers have ~1/3 market share each, plus or minus a bit.
Right now, AT&T and Verizon hold 2/3 of the market, while sprint and t-mobile have the other 1/3 (shared)

So I understand anyway. EDIT: Person below says Sprint market share is 11%... so Sprint and T-Mobile might be well under 1/3.

ILikeTobacco said,
The second this merger doesn't happen, Spring will turn around and get the merger they were trying to do going again. Politics as usual.

Sprint and T Mobile tend to be cheaper then AT&T and Verizon. They still be #3 and price would still be a competing factor, not so if AT&T goble them up. Also in the AT&T takeover it stipulated if the merger failed, T Mobile would get roaming on AT&T network.

techbeck said,

Probably, but I would much rather have Sprint and TMO merge. Promotes better competition/pricing and help even the playing field between Verizon and ATT.

Yeah, a merger between Sprint and T-Mobile would be much better for the consumer than a merger between AT&T and T-Mobile... A merger between AT&T and T-Mobile just creates too large a contender in the mobile space and stifles competition.

I hate Sprint but i'm glad Dan Hesse is trying to stop the mirger...I hate AT&T. But this will probably hurt Verizon and Sprint more in the end, yeah combined they might hold 79% of the market share now, but as soon as the mirger happens alot of people including my self will jump ship.

eviltwigflipper said,
I hate Sprint but i'm glad Dan Hesse is trying to stop the mirger...I hate AT&T. But this will probably hurt Verizon and Sprint more in the end, yeah combined they might hold 79% of the market share now, but as soon as the mirger happens alot of people including my self will jump ship.
You are soooo correct sir! If this happens, this T-Mobile customer is jumping ship. My contract is up in June. Just in time too. I have been a T-Mobile customer for 8 years and it will be no problem for me to forget them altogether.

Why were there only four big providers in the whole of America to begin with? I can't say much, the UK's not much better with only four major operators, Everything Everywhere, O2, Vodaphone and 3.

thealexweb said,
Why were there only four big providers in the whole of America to begin with? I can't say much, the UK's not much better with only four major operators, Everything Everywhere, O2, Vodaphone and 3.

It's even worse than that. It's 4 carriers which because of separate network technologies, bands, and device requirements, no device can interoperate between all 4 networks. It leads to horrible consumer lock-in in that if you pay $200 for a phone and for some reason feel your service is no longer up to your standards, you have to a) pay and ETF then b) buy a new phone because your previous one will no longer work because of SIM locking and network technologies.

If anything, I'd like to see the FCC force all 3 carriers to make devices that must interoperate between their networks in the next 5 years since they are all building or planning to build LTE networks. It's not like the UK or the rest of the world where buying a phone is a separate consideration from picking a cell phone provider.

thealexweb said,
Why were there only four big providers in the whole of America to begin with? I can't say much, the UK's not much better with only four major operators, Everything Everywhere, O2, Vodaphone and 3.
There used to be more. AT&T grabbed up... what was it... Cingular a few years ago?

cybertimber2008 said,
There used to be more. AT&T grabbed up... what was it... Cingular a few years ago?

Reverse that. AT&T wireless was such a bad company they were driven out of business (I helped in that boycott). Then Cingular bought the name...and apparently the mindset infected them...because now Cingular has become like the AT&T of old -- in name and deed.

excalpius said,

Reverse that. AT&T wireless was such a bad company they were driven out of business (I helped in that boycott). Then Cingular bought the name...and apparently the mindset infected them...because now Cingular has become like the AT&T of old -- in name and deed.

AT&T spun off it's wireless, which was Cingular but eventually re-absorbed back in to AT&T.
Cingular hasn't existed in a while.

etempest said,

AT&T spun off it's wireless, which was Cingular but eventually re-absorbed back in to AT&T.
Cingular hasn't existed in a while.

Yeah, talk about some good business strategy... lol What's really amazing though is that, though Cingular was never great, they were far better prior to being reabsorbed by AT&T...

etempest said,

AT&T spun off it's wireless, which was Cingular but eventually re-absorbed back in to AT&T.
Cingular hasn't existed in a while.

No. There was the national AT&T wireless and the regional Cingular Wireless. Cingular Wireless bought out AT&T Wireless. Later, Cingular's parent company (I believe SBC?) bought out AT&T and got the rights to the name AT&T. Cingular rebranded as AT&T.