Sprint chairman to make case for US consolidation - report

Sprint chairman to make case for US consolidation – report

04 MAR 2014

Masayoshi Son, Sprint chairman, is planning a direct appeal to the US business community that consolidation in the country’s telecoms sector should be welcomed.

According to a Wall Street Journal (WSJ) report, Son – CEO of Japan’s SoftBank, which owns nearly 80 per cent of Sprint – will use his presentation to the Chamber of Commerce on 11 March to extol the merits of having fewer market players.

Sprint, the third-largest mobile operator in the US, is linked with a bid for fourth-placed T Mobile US (67 per cent owned by Deutsche Telekom).

US anti-trust officials, however, have expressed doubt that a tie-up between Sprint and T-Mobile US would be given the green light.

Son, for his part, has accused the big two – AT&T and Verizon Wireless – of running an effective duopoly in which prices are kept artificially high and innovation is thwarted.

“Every time I make a business trip to the US, I am reminded how terrible connections are there,” he said during a February news conference quoted by the WSJ.

He added that Sprint wouldn’t be able to mount an effective challenge to AT&T and Verizon Wireless on its own and that the US had one of the world’s highest mobile fees. The principles of competition, he argued, were not working.


Ken Wieland

Ken has been part of the MWC Mobile World Daily editorial team for the last three years, and is now contributing regularly to Mobile World Live. He has been a telecoms journalist for over 15 years, which includes eight...More

Read more