T-Mobile CFO Calls Sprint 'Most Logical' Merger Partner Last week, reports suggested that T-Mobile and Sprint have finally begun merger talks, after more than a year of flirtation. While a Charter or Comcast acquisition of either company can't be ruled out, Sprint Chairman Masayoshi Son has been telling anybody who'll listen that acquiring T-Mobile is Sprint's preferred outcome. Son has also spent a large part of the year trying to butter up the Trump administration to grease the skids for the deal.

Now T-Mobile has returned serve, company CFO Braxton Carter making it clear that they think Sprint is the ideal partner as well. The argument for combining the two companies is "even more true today because of Sprint’s precarious financial position," Carter said at an investor conference this week. "The combined company would have the ability and the resources to really put all of that spectrum to work for the benefits of consumers and businesses everywhere." Consumers and consumer advocates don't really see it that way. The unified company might have more solid footing, but the elimination of one of four major wireless carriers would inevitably reduce sector competition, the reason the deal was blocked by regulators in 2014. And it would reduce competition at a time where T-Mobile's having a mammoth impact on entrenched carriers AT&T and Verizon, who were just forced to bring back unlimited data plans as a result. That concept appears lost on both Sprint and T-Mobile executives. "Scale matters in this industry," T-Mobile COO Mike Sievert agreed. "We’re here to create value, we’ve shown you a value creation case as a standalone, and the rational question for us all to be asking is: Can we turbocharge that in a way that’s advantageous for our shareholders." And while shareholders may be pleased, prioritizing the interest of shareholders too far beyond the interest of consumers results in the kind of companies T-Mobile has spent the last half-decade mocking mercilessly. And while shareholders may be pleased, prioritizing the interest of shareholdersbeyond the interest of consumers results in the kind of companies T-Mobile has spent the last half-decade mocking mercilessly.







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Most recommended from 64 comments

Erik709

join:2017-01-01 22 recommendations Erik709 Member Meh This won't be good for consumers...

Economist

The economy, stupid

Premium Member

join:2015-07-10

united state 10 recommendations Economist Premium Member Sprint is a loser from every angle Sprint is a bond-debt ridden anchor around the neck of anyone who acquires it. Please, T-Mobile, do not be Frontier and take on so much debt load that it sinks you.

FureverFurry

RIP Daphne: 3/12/05 - 6/19/12

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49xxx Zoom 5341J

ARRIS WBM760

Vonage VDV-21

3 recommendations FureverFurry Premium Member Turbocharge this ! "Scale matters in this industry," T-Mobile COO Mike Sievert agreed. "We’re here to create value, we’ve shown you a value creation case as a standalone, and the rational question for us all to be asking is: Can we turbocharge that in a way that’s advantageous for our shareholders."



This roughly translates to "advantageous" for shareholders/bad news for T-mobile customers. I wonder what the shareholders will think if (when?) TMO sheds customers IF it merges w/Sprint ?



So IF the merger happens, will it have the better attributes of T-mobile or the cr*p of Sprint ?



But on the bright side -- no worries about a TMO and Comcast merger now.

Anonaa64f

@pacswitch.com 2 recommendations Anonaa64f Anon Careful T mobile do not adopt the AT&T play book "And while shareholders may be pleased, prioritizing the interest of shareholders too far beyond the interest of consumers results in the kind of companies T-Mobile has spent the last half-decade mocking mercilessly".



I agree 100% with the above statement. That's why AT&T and it's shareholders are suffering. Trying to increase profits at the expense of the consumer's ability to afford and enjoy service is equal to loss of consumer generated revenue or income.



But if t mobile can maintain proper control over any potential greedy impulses then they will continue to do well unlike AT&T and perhaps verizon.

Anon858ba

@zscaler.com 2 recommendations Anon858ba Anon The amusing thing is... Prioritizing the interest of shareholders too far beyond the interest of consumers results in the kind of companies T-Mobile has spent the last half-decade mocking mercilessly. That TMUS is the exact same type of company. They've just done an, admittedly, incredible job of convincing (some) people that they actually give a rat's whisker about them. All it took is for a guy to grow his hair out and start dressing like a millennial (even though said guy attacked VZ for courting millennials, go figure), drop a few four letter words at opportune times and the tech media was all too willing to anoint him as some sort of wireless messiah (payola?). Kudos for it working so well. I wouldn't be surprised if this doesn't get discussed extensively in economics classes across the country many years from now.