T-Mobile CFO hints that a merger with Sprint is likely

March 10, 2014
8

If you are rooting against the proposed Sprint and T-Mobile merger, it could be time to give up the good fight. Though many (the FCC included) would prefer the two stay separate, recent comments made by a T-Mobile executive hint that their joining forces is inevitable. The comments not only attempt to soften opinion on the merger, but suggest it’s going to happen.

At a recent Internet and telecom conference, T-Mobile CFO Braxton Carter said “It is not a question of if, it is a question of when” in regard to his company merging and consolidating in the future. Though not specifically mentioning Sprint, Carter’s other comment is what really strikes a nerve:

To take a third-scale national player that has the scale benefits with the right business model could be very competitively enhancing in the U.S.

Interesting commentary, but to whom is he referring? What is the right business model? As Reuters points out, the CFO’s salinet reasoning flies in the face of their wildcard CEO, who bashed Sprint just last week via (you guessed it) Twitter. In a tweet, John Legere poked fun at Sprint’s popularity. Though seemingly jocular in tone, it could be Legere is just jockeying for position in an upcoming merger.

Legere points out most people dislike Sprint. The CFO says a merger is a good idea — with the right business plan in place. While Sprint parent company Softbank is leading the purchasing charge for T-Mobile, it could be the T-Mobile brand that sticks around, not Sprint. The merger still puts the newly formed company in third place behind AT&T and Verizon, so it's likely not going to ruffle the same feathers in the FCC.

Though the FCC is historically against a merger, Carter is challenging them to step up. “The government can't have their cake and eat it too. If they think there really needs to be four players in this market on a nationwide basis, they are going to have to put some structural protections to ensure an adequate distribution of spectrum.”


Recent Stories
  • Jason Williams

    Isnt sprint cdma vs t Mobile gsm? How would that work?

    • CPA01

      See Nextel. Short Story: Badly.

    • Evan Wickes

      everything is switching to LTE so cdma/gsm will go away.. for the time being, u can use any phone if they have towers w/ both technologies.

  • http://www.youtube.com/#/mrjlwilliams J. Williams

    Some of you bloggers read way to deep into a simple statement. Let it go.

  • CPA01

    Anyone pay attention to the Canadian Wireless Cartel?

    That’s what happens with three national carriers.

    No thanks.

    Fix the spectrum auctions rather than eliminate competition. The fastest way to destroy innovation is to support consolidation.

  • Noel

    NOT GONNA HAPPEN. Tmobile has done a lot recently to shake up and disrupt the US cellular/mobile market to the benefit of even customers on the other four major Networks. Merging with Sprint will rub Tmobile customers and all other cellular customers of that positive disruptive carrier. All these guys are all jockeying for possible positions. The FCC n DOJ should look out for US customers and preserve competition with four major carriers and the viability of the change agent…Tmobile.

  • Edward Daniels

    i for one is against the merger. i dont like sprint and strongly believe sprint is a bad company. there service is spotty and nothing good comes out of sprint. lets look at there track record. what happened to nextel? no one ever talks about them no more. how come becuz its trash now that sprint took over. boost mobile smh a brand will die very shortly, it needs lifesupport. so what do u think will happen if sprint takes over t-mobile.. after a year or two ppl will talk about how good t-mobile use to be before the take over. smh last of a dying brand.

  • JayQ330

    I go for the merger, T-Mobile name would be a better brand name to keep. Understand that in other posts T-Mobile states with the right plans & prices it will work out… people don’t take into account that sprint is replacing every tower to the most modern tech which can change TDD to FDD lte & even aws3/4 without changing anything major but a software upgrade or a slot, it can basically handle all cell technologies & they’re thinking forward, so is T-Mobile. If it status T-Mobile, sprint, Verizon & at&t then the battle will always be sprint vs T-Mobile While at&t & Verizon keeps their prices up as usual. But with sprint/T-Mobile merger it’ll have enough coverage & data with more bandwidth than att/Verizon together which would intice att’s & Verizon’s customers to come over & in turn force them to compete price & plan wise…. Win,Win for the people.