Wednesday, March 23, 2011

Verizon CEO: not interested in Sprint acquisition

Daniel Mead, the CEO of Verizon Wireless, said then nation's No. 2 wireless carrier (as of December 2010) has no interest in acquiring No. 3 carrier Sprint Nextel Corp, despite the proposed merger between AT&T and T-Mobile USA. At the same time, unlike Sprint, he added that his company would not oppose AT&T's plans to buy T-Mobile USA from its parent company Deutsche Telekom.

The proposed sale, which is expected to take 12 months to complete, and which is expected to see extensive federal oversight. was set at $39 billion in cash and stock.

Mead, speaking to Reuters ahead of the 2011 CTIA Wireless Conference, said,
"We're not interested in Sprint. We don't need them."
The CTIA conference takes place in Orlando, FL, this week.

Sprint had been bidding for T-Mobile USA itself, it was said, but was outbid by AT&T. Sprint firmly opposes the merger, saying it would "result in a wireless industry dominated overwhelmingly by two vertically-integrated companies that control almost 80 percent of the US wireless post-paid market." Sprint CEO Dan Hesse said:
"I do have concerns that it would stifle innovation and too much power would be in the hands of two.
With Verizon passing on a Sprint acquisition, it's unclear what Sprint's future may be. Some speculation is that Sprint will try to acquire a few smaller carriers, like Metro PCS.

No comments: