Softbank deal validates US rejection of T-Mobile-AT&T merger, Sprint CEO says

Dan Hesse said regulators' blocking of the deal last year made Softbank's planned investment in Sprint possible

Softbank's planned US$20 billion investment in Sprint validates the way the U.S. government handled last year's proposed merger of T-Mobile USA and AT&T, Sprint CEO Dan Hesse said Thursday.

The proposed 2011 deal, which would have seen AT&T pay $39 billion to take over T-Mobile USA, fell apart in December in the face of opposition from both the U.S. Federal Communications Commission and the Department of Justice. The two agencies, which faced pressure from carriers including Sprint, feared the takeover would harm competition.

"Last year, I was asked why did I, personally, and why did Sprint, take such a loud, strong, vehement opposition to the T-Mobile-AT&T deal," Hesse said during a keynote speech at Sprint's developer conference in San Jose.

(See video of Hesse commenting on the Softbank deal.)

"I was concerned that if we had a government-sanctioned duopoly, investment would dry up," he said. "I think the $20.1 billion investment by Softbank into Sprint is validation of the way the Department of Justice and FCC looked at it."

Last week, Masayoshi Son, chairman and chief executive officer of Softbank, told Bloomberg News in an interview that he wouldn't have made an investment of "even $1,000" in the U.S. mobile market had the AT&T and T-Mobile deal succeeded.

The Softbank deal, which itself awaits regulatory approval, will give the Japanese telecommunications company a 70 percent stake in Sprint.

"I think it's a big win for all of us, and certainly a big win for the U.S. wireless industry," Hesse said.

He predicted "the new Sprint" will be a "much, much stronger competitor in the U.S. wireless industry."

Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is martyn_williams@idg.com

Tags business issuessprintCarrierstelecommunicationregulationgovernmentMergers and acquisitionsSoftbank

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service

Comments

Comments are now closed.

Latest News Articles

Most Popular Articles

Follow Us

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Resources

Best Deals on GoodGearGuide

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?