Print 76 comment(s) - last by lexluthermiest.. on Jul 2 at 9:39 PM

Sprint CEO Dan Hesse
Hesse feels he is fighting for Sprint's survival and the industry

The biggest wireless announcement of the year was AT&T's proposed purchase of T-Mobile that would make it the largest carrier in the U.S. While the merger is expected to get the green light by regulators, some in the industry think that the merger is bad for the industry.

Sprint is working hard to get the merger blocked and is pulling out all of the stops to accomplish its mission. Not only does Sprint think that its survival is at stake, but the company wants everyone to believe that the purchase of T-Mobile by AT&T will be disastrous for the industry and consumers. Sprint CEO Dan Hesse is working to find any way possible to block the purchase from having Sprint's own engineers tell AT&T how it could increase its capacity to hiring lobbyists and courting other CEO's to stand against the deal.

Many think that the only thing Sprint can hope for is to force the FCC and other regulators to impose conditions on the purchase that would make it better for Sprint. Sprint CEO Dan Hesse said, "Clearly, purely, we want to win and block the merger. This one poses real risks."

The issue for Sprint as a company is that the merged AT&T/T-Mobile carrier and Verizon could make Sprint unable to compete for new devices and on price, ultimately forcing the company out of business. Hesse has already admitted that Sprint's survival as an independent is in doubt if the purchase goes through.

Hesse continues, "The industry just won’t be as innovative and as dynamic as it has been. It’ll gum up the works when everything has to go through these two big tollbooths, one that’s called AT&T and one that’s called Verizon."

While Sprint and Hesse argue against the deal, AT&T says that the merger would be better for consumers. The purchase would allow AT&T to make more investments in networks and future technologies according to AT&T. AT&T General Counsel Wayne Watts said, "Their arguments about prices going up just defy economic logic. We’ve had wireless transactions multiple times over the last ten years and prices have gone one direction: they’ve gone down."

Many note that while AT&T has promised it will use the purchase to improve wireless broadband access, there is no way to force a company to stand up to promises made. The only way to enforce promises would be for the Justice Department to place conditions on the merger and if they conditions aren't met AT&T could be taken to court.

Many believe that Sprint's concerns are being heard by the decision makers.  Whether or not they are enough to block the sale remains to be seen. The FCC and Congress are grilling AT&T on the purchase looking for any possible downside to the buyout.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: Too late for Sprint
By badbirdlb on 6/28/2011 2:36:50 PM , Rating: 2
don't do it you will be unhappy....maybe not at first but they will kill your soul!! I had At&t for 14 years, the WORST costumer service on the planet they had my on the hook for everything; home phone, office phone, DSL, cell phone (23 company cells) at lastly TV. I have been with Sprint for three years and the one time I had to call them I got a very nice lady in South Carolina who took very good care of me...went so far as to call me back later on that day to make sure the level 2 tech she passed me on to was able to fix my issues.

RE: Too late for Sprint
By killerroach on 6/28/2011 2:43:22 PM , Rating: 2
If he's on Sprint already, it's not like he can get any worse customer service...

As a current T-Mobile customer, I'm not happy about the merger, but Deutsche Telekom doesn't seem to want to be in the US market anymore. The way I see it, either the FCC and FTC approve the merger or Deutsche Telekom pulls out completely and AT&T buys up the remaining assets (towers, contracts, and spectrum). Considering the two potential paths, I think the merger is the lesser of two evils.

RE: Too late for Sprint
By Solandri on 6/28/2011 5:44:25 PM , Rating: 2
If he's on Sprint already, it's not like he can get any worse customer service...

I agree Sprint used to have the worst customer service, but they've made a lot of progress towards improving it. In the latest Consumer Reports service ratings, Sprint actually ranked #2 in customer service behind U.S. Cellular, just ahead of Verizon at #3. T-Mobile was #4. AT&T was dead last, though I suspect most of that had to do with grumpy iPhone customers.

The overall rankings (device + service + customer service) were the same with Sprint and Verizon switching places.

RE: Too late for Sprint
By Dr of crap on 6/29/2011 8:54:56 AM , Rating: 2
I don't understand how you guys can rate a cell service with how the customer service of the carrier is.

Do you call customer service THAT much?

I have Sprint, have called customer service a few times, not any worse or better than any other customer serivce I've called. AND I wouldn't drop my cell serivce just BECAUSE I had a rep not treat me like a god.

It's cell phone service they provide not customer service. They aren't in charge of fixing my car, in which I'd have a problem if they weren't really good!

RE: Too late for Sprint
By ImEmmittSmith on 6/28/2011 3:14:53 PM , Rating: 2
I totally disagree, I have been with AT&T(SWB and Cingular) since the early 1990's and have not had a problem with them. I live in the Dallas area and do get a few dropped calls now and then since I moved to the iPhone, but overall my experience has been very good. I have never had an issue with their Customer Service either, they have always been easy to work with. But, with all the AT&T hate that shows up here, maybe I am one of the lucky few!
But, I would definitely vote against the merger/takeover myself because it gives us less choices and reduces competition. Plus, I like the girl in the T-Mobile commercials!!

RE: Too late for Sprint
By realist on 6/28/2011 3:23:21 PM , Rating: 2
AT&T + T-mobile

Sprint should partner up with Verizon. 2 major guys, It'll be like Coca Cola vs Pepsi.

RE: Too late for Sprint
By Wererat on 6/28/2011 5:08:17 PM , Rating: 2
Yea, 'cause a duopoly is serving us SO well in the political arena...

RE: Too late for Sprint
By cerx on 6/28/2011 5:38:30 PM , Rating: 2
We can have a duopoly in soft drinks because it is a lot easier for a drink company to pop up (7-up, Dr. Pepper, etc.) than a new cell provider. If we fall to 2 providers, with all the upfront costs of securing spectrum and building towers we'll never be able to add a 3rd.

RE: Too late for Sprint
By Etsp on 6/28/2011 10:13:07 PM , Rating: 2
That doesn't make any sense. Duopolies and Monopolies naturally occur BECAUSE of the high barrier to entry, not in spite of it. Intel and AMD as an example, Nvidia and AMD (because they bought ATI) as another.

RE: Too late for Sprint
By sorry dog on 6/29/2011 9:06:18 AM , Rating: 2
The difference between processors and cell service is how often does the average person go processor shopping? Once every couple of years whereas wireless providers are ongoing and a much greater part of our lives. I don't recall ever having to give my social to AMD or Intel. But when it comes down to two then it will be much easier for those two to get together on policies that will make it easier for them to do business...without regard for our privacy and consumer rights...and then we only have the government to protect us...and that's working so well right now.

...and anyway it's quite arguable that the processor duopoly has stagnated processor innovation quite a bit at times...

RE: Too late for Sprint
By bigboxes on 6/29/2011 10:54:02 AM , Rating: 2
I'm smack in the middle of DFW and while AT&T has great data service their calls drop all the time. It happens so frequently it's a running joke among my friends, both AT&T subscribers and others. Don't take it personally that AT&T fails at what it needs to succeed most in (phone calls).

RE: Too late for Sprint
By bigboxes on 6/29/2011 11:01:02 AM , Rating: 2
Not to mention you can tell when someone is on AT&T as the call quality (when it's not dropping) is not clear. You get on Verizon or Sprint and it's crystal clear clarity. Sometimes I wish I wasn't locked into my contract, but we have our home phone and satellite bundled with our cell service. I hope Sprint survives because they don't look too bad.

"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings
Related Articles

Latest Headlines
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM

Most Popular ArticlesAre you ready for this ? HyperDrive Aircraft
September 24, 2016, 9:29 AM
Leaked – Samsung S8 is a Dream and a Dream 2
September 25, 2016, 8:00 AM
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
Snapchat’s New Sunglasses are a Spectacle – No Pun Intended
September 24, 2016, 9:02 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki