A senior official from communications giant Sprint has said that he has concerns over the recently announced acquisition of T-Mobile USA by AT&T.
It was recently announced that communications giant AT&T had put in a bid for the acquisition of T-Mobile USA, with the thirty nine billion dollar deal including cash and assets. AT&T said that amongst other things it would use the acquisition to expedite its 4G mobile broadband network.
However, a senior official from another communications giant, Sprint, has expressed concern over the acquisition. Sprint Nextel Corp. CEO Dan Hesse stated that his concerns were centered around how the acquisition could hurt his company, the industry as a whole, and result in a monopoly in the market.
According to figures AT&T and Verizon already have two thirds of the market when it comes to wireless subscribers in the United States, and this could increase to seventy five percent of the market if this deal goes through.
Hesse was part of a panel that was discussing the deal at a cell phone conference held in Florida. He stated: “I do have concerns that it would stifle innovation and too much power would be in the hands of two.” The head of Verizon Wireless, Dan Mead, was also asked for his stance on the acquisition. He simply said: “We’re certainly very interested in what’s going on.”
It was originally thought that Sprint might put in a bid for the T-Mobile USA acquisition and the bid from AT&T therefore came as quite a surprise to many industry officials.
Source – KETK NBC