In what proved to be an eye-opening interview with Bloomberg this week, Sprint CEO Dan Hesse said what we all expected to hear - that he's not too pleased with the possible AT&T, T-Mobile merger. What many of us didn't fully expect, however, was a pledge from the Sprint chief to pretty much do whatever it takes on his part to block the merger from happening.
Dan Hesse’s White Room is closely guarded even within Sprint Nextel Corp. The chief executive officer carries the only key and draws black curtains over his scribblings before leaving. This is where Hesse retreats to map out “nukes” in red, blue and green ink, lately his tactics for stopping AT&T Inc. (T)’s proposed takeover of T-Mobile USA.
Of course, Hesse isn't just concerned with what the merger in question will do to his company (possibly kill it), but the long-term consequences for the mobile industry at large. “The industry just won’t be as innovative and as dynamic as it has been,” Hesse says, trying to make his argument broader in scope. “It’ll gum up the works when everything has to go through these two big tollbooths, one that’s called AT&T and one that’s called Verizon.”
In a surprise announcement late last March, AT&T announced a definitive agreement to acquire T-Mobile USA Deutsche Telekom for $39 billion in cash and stock combo. Ever since, all we've heard about are the regulatory roadblocks that AT&T will have to clear before this transaction is allowed to happen. And from the looks of it, Sprint wants to adorn that potential path to regulatory approval with as many "nukes" as possible.
To read Hesse's full interview with Bloomberg, click here.