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mendyk
mendyk
5/2/2018 | 1:54:14 PM
Re: Increasing competition
The comments from the TMob CEO so far have been aimed at one particular individual who's seen as being the Great Decider on whether this proposed merger happens or not. More jobs. We beat China in 5G. Prices will go down. Etc. None of this has to be true -- and you can make a pretty strong case that none of it will pan out. It just has to get past the scrutiny post.
Michelle
Michelle
5/2/2018 | 1:41:57 PM
Re: Big risk that could pay off appropriately
Indeed. There's always a transition period (sometimes layoffs). There's still plenty of time... 
DanJones
DanJones
5/2/2018 | 12:26:34 PM
Re: Increasing competition
Legere said it himself on the call, so take that as you will. They did admit that there would be some eventual re-org but that the combined company (200,000 employees in the US right now) would be much bigger by then.

I find it hard to believe there won't be any job cuts when they combine existing Sprint and T-Mobile stores in city areas though, just seems highly unlikely.

 

DJ
mendyk
mendyk
5/1/2018 | 4:49:21 PM
Re: Increasing competition
Sounds semantical. The combined three and four would be more competitive with one and two, but arithmetically there is less competition. So, no.
Clifton K Morris
Clifton K Morris
5/1/2018 | 4:42:34 PM
Re: Increasing competition
A Director for The Washington Center for Equitable Growth is referencing HHI as a fair justification for this to be blocked:

https://twitter.com/Michael_Kades/status/990674900770844672

"First, merger is presumptively illegal under the 2010 Merger Guidelines. Based on data from Statista, (reference: https://www.statista.com/statistics/199359/market-share-of-wireless-carriers-in-the-us-by-subscriptions/ ) HHIs will go from 2825 (already a highly concentrated market) to 3258. The 400+ increase more than double what triggers presumptive illegality.”

It still begs to ask why legal counsel at these companies allowed them to pursue merging.
Mitch Wagner
Mitch Wagner
5/1/2018 | 2:38:24 PM
Increasing competition
I saw a comment on this - and I can't remember or find the source - that this merger would actually increase competition. 

Most mergers reduce competition and are bad for customers. But in this case, we have a field of two giants and two much smaller companies. Post-merger, there would be three companies of comparable scale. More competition, not less. 

What do you think?
mendyk
mendyk
5/1/2018 | 2:06:33 PM
Re: Big risk that could pay off appropriately
Also, a business merger doesn't mean that the two networks magically become one. So T-Mob users can expect to enjoy at least a few more years using their phones in the great outdoors. Even if Mr. Legere suggests otherwise.
Michelle
Michelle
5/1/2018 | 1:59:34 PM
Re: Big risk that could pay off appropriately
"...it could well mean better reception inside buildings for T-Mobile customers, so that sounds pretty dandy to me! ;)"

I'm sure this is buried deep in the purchase documents...
FbytF
FbytF
5/1/2018 | 9:16:46 AM
Merger Headcount
I agree with your comments about a headcount reduction, most mergers involve a reduction based on redundancies in operations. But T-Mobile/Sprint is saying they will actually add headcount, thousands of new jobs. See attached video. https://www.youtube.com/watch?time_continue=66&v=1nsbmtwMrgY

Could just be paving the way for regulatory approval.
FastCache
FastCache
4/30/2018 | 2:35:07 PM
M&A
The regulator will take a close look at this merger. The combined forces of T-Mobile and Sprint will still only ranking them third behind Verizon and AT&T.  Also the big two are clearly making moves to add content services into the mix using their scale.  Taking all this into consideration there may be little reason to block the deal.
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