Sprint’s CEO, Dan Hesse and Softbank CEO/Sprint Chairman, Masayoshi Son is reportedly meeting with the FCC today to attempt to sell them on their pending deal with T-Mobile. There’s a lot of people for and a lot of people against this deal. We even heard the Department of Justice speak out against the deal, so it could be a tough sell for Hesse and Son. It’s reported that the two are scheduled to meet and chat with the FCC about a variety of subjects, and not specifically about deals. But it’s likely that consolidation will be a prominent theme in these talks.
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Sprint’s argument for attempting to buy T-Mobile is that a combined carrier would make for a stronger competitor for AT&T and Verizon in the industry. Basically telling the regulators that further consolidation is needed. The Wall Street Journal is also reporting that Sprint CEO, Dan Hesse was scheduled to meet with President Obama to discuss Sprint’s work in an initiative to provide wireless service to thousands of schools. This initiative was highlighted in Obama’s most recent State of the Union address just last week.
Recently, we’ve seen T-Mobile’s CEO, John Leger, jump on board in favor of a merger between the two companies. However, their recent success is making it harder to justify the need for a merger. They gained over 4 million customers in 2013 alone, which is a huge jump from 2012, where they were losing customers. Along with John Legere bashing his competitors on a daily basis, T-Mobile’s competitive pricing and campaigns have given the fourth largest carrier out there a big boost, which was needed. In fact, Deutsche Telekom has said that T-Mobile is back to the value it was before AT&T attempted to buy the carrier in 2011, which failed.
We aren’t sure whats going on with Masayoshi Son and Dan Hesse and their schedule’s but one thing’s for sure. Whether the FCC agrees or disagrees with them, we’ll definitely hear something about it. So stay tuned.
Source: The Wall Street Journal