Even as speculation mounts about a possible marriage of Sprint and T-Mobile, the two chief executives continue to maintain a friendly public rivalry.

T-Mobile CEO John Legere took a playful poke at Sprint for dropping the price on its prepaid Boost Mobile plans, tweeting:

Sprint President and Chief Executive Daniel Hesse, in an interview with Bloomberg Television’s “Market Makers” hosts Erik Schatzker and Stephanie Ruhle, took the jab in stride, noting that he regards Legere, who used to work for him, as a peer.

“I don’t think John’s ever going to stop egging me on,” Hesse said.

Hesse used part of the TV interview to talk about the consumer benefits of creating a stronger rival to compete with the industry’s dominant players, Verizon and AT&T.

“The issue you have in the U.S. wireless industry is it is a duopoly, where you have 84 percent of the [pre-tax earnings] and 100 percent of the free cash flow out of two large companies,” Hesse said. “So, I think the industry would be healthier and you’d have a stronger No. 3.”

Hesse acknowledged any potential merger would face an uphill battle in winning regulatory approval.

“There are a lot of regulators who are skeptical,” Hesse said. “Theoretically, if some transaction were to occur, we would have a lot of convincing to do in Washington.”

Here’s the interview:




2 comments
gprovida
gprovida

Yup get rid of all that price cutting and service features that competition is causing.

KenG
KenG

Rather than have just the #3 player competing with ATT & VZ, it's better to have #3 and #4.  Sprint uses the same kind of network as VZ, and T-Mo uses the same as ATT.  Sprint should abandon the merger idea and adopt T-Mobile's strategy across the board and focus on VZ.  Unlock the phones, and get their mfrs to make phones that work on both Sprint and VZ, and get rid of the contracts.  


And don't take so damn long to renovate your network.  It's unusable in too many areas.

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