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Sprint CEO Dan Hesse Says AT&T/T-Mobile Merger "Stifles Innovation" - Will Appeal
Sprint CEO Dan Hesse has issued further statements regarding the planned merger between AT&T and T-Mobile. His perspective is that the combined company would have "tremendous" power that ultimately would narrow market competition and "stifle innovation". He intends to file an appeal with Congress during the merger proceedings. He also pointed out that if the merger goes through then AT&T/T-Mobile and Verizon will hold 79% of the market, leaving Sprint with even less than ever before chances of competing.
Jim Cicconi, senior executive vice president at AT&T, responded to Hesse’s comments in an e-mailed, “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. 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.”
I can understand why AT&T wants to do this, but it definitely needs to be carefully reviewed, so we don't end up with another giant anti-competitive conglomerate lording over its customers. I remember during the eighties when "Bell" telephone was broken up into AT&T and other smaller "Bells". What do you guys think?
Source: Phandroid and Bloomberg
03-23-2011 01:51 PM