AH Softbank Sprint T-Mobile Merge 1.1

AT&T’s CEO Talks about the Potential T-Mobile/Sprint Merger

June 17, 2014 - Written By Alexander Maxham

Here’s an interesting tidbit of news today, this one’s coming out of Re/Code today. This is in regards to the T-Mobile/Sprint possible merger. We all know that Sprint has been trying to buy T-Mobile for quite some time, and Deutsche Telekom has been trying to ditch the US for a few years now. In fact they were almost out of here a few years ago when AT&T was going to buy the company, but the FCC and DOJ blocked that buyout, which gave T-Mobile a ton of money and spectrum. Now that Sprint is trying to buy T-Mobile, it’s making AT&T’s scratch it’s head and maybe call foul, after the FCC said they didn’t want consolidation of the wireless industry. Here’s a quote from AT&T’s CEO Randall Stephenson

“The problem as I see it is the way the government shut our deal down. They wrote a complaint and a very specific complaint. You’re consolidating the industry from four to three national competitors,”

That right there is the exact reason why I don’t think it’ll go through, and why I think the FCC and DOJ will block it. Randall also stated “If you think of Sprint and T-Mobile combining, I struggle to understand how that’s not four going to three.” And I see his point there, entirely. It’s also simple math. Why would Softbank buy T-Mobile if they are not going to combine it with Sprint, or vice versa? AT&T isn’t the only one to point this out either, many of us have been saying this for months now. As it just doesn’t look like it’ll go through, and the FCC has told Softbank already that they don’t want 3 national carriers, that they want at least 4. 

So far there’s no official deal just yet, but the word is that the deal is set between Softbank and Deutsche Telekom and valued at about $32 billion. In Which Deutsche Telekom would still own about 15% of the combined company. We’ll be keeping our eye out on this one.