Yesterday there was a Senate hearing to help determine the fate of the AT&T/T-Mobile merger, and Sprint's CEO, Dan Hesse, was there to viciously assault the merger and stop it from happening. He rather cleverly titled his speech to the assembly, "The AT&T/T-Mobile Merger: Is Humpty Dumpty Being Put Back Together Again?". In his presentation, he made four compelling arguments against the proposed merger:
  • AT&T and Verizon (referred to as the Twin Bells by Hesse) would be able to dictate freely the voice and data prices - and, nope, Sprint's CEO didn't suggest they will be decreased.
  • He noted that the Twin Bells would be able "to raise competitors’ costs, reduce their network quality and quash competitive alternatives", because they will control most of USA's wireline infrastructure and the critical "last mile".
  • Dan Hesse also said that a duopolistic wireless market would limit consumer choice, as most smartphone and tablet manufacturers would opt to release their products on Verizon and on the carrier that's formed by the AT&T-T-Mobile merger, because of their dominating market share.
  • He warned that innovation would also be harmed, as developers would focus on creating content for the Twin Bells.
Here's a further quote from the beginning of his speech, "The wireless industry thrives on competition, which, in turn, drives investment, innovation, consumer choice, job creation and U.S. global leadership in wireless communications. If AT&T is permitted to devour one of the two remaining independent national wireless carriers, while the rest of the world achieves advances in technology and innovation for the 21st century, the U.S. will go backwards – toward last century’s Ma Bell."

He also made the point that AT&T's claiming that it needs T-Mobile's Spectrum to help them reach outward to rural areas was bogus, as it would only amount to just a percent more than it already does. His final statement appealed to the DOJ and the FCC to reject the merger outright. Let's cross our fingers that his eloquent arguments were persuasive enough.

Source: PhoneArena