T-Mobile CEO John Legere (left) and Sprint CEO Marcelo Claure
On May 1st, T-Mobile CEO John Legere told CNBC on Monday that the large-scale merger transaction between the operator and Sprint will "further enhance" competition and promote wireless speed. increase.
Leger, in an interview with Sprint CEO Marcelo Claure, said that "the service will be further expanded, prices will decline, and wireless speed will increase." If you previously liked the competition in the industry, then you will like the future development of this competition. ”
However, as far as consumers are concerned that their bills will be affected by the merger of T-Mobile and Sprint, Leger has declined to comment. However, he promised that their service price will be the lowest among major operators.
During the US stock market early Monday, T-Mobile's stock price once fell by 5%, while Sprint once fell by about 12%. The reason is that the industry is concerned that US regulators may not approve the merger transaction between the two parties.
Leger said that "all roads have pointed out Washington." China is defeating the United States in the next generation of 5G wireless services, but our newly merged company can change this pattern. We are in a backward position, but we are still in the early stages of 5G. We are lagging behind China. This is a phenomenon that we do not allow. "Legle also said that the GOP's tax cuts aggravated the value of this transaction.
On Sunday, the two major operators announced that Sprint has agreed that T-Mobile will implement M&A in all its stock trading methods at a total value of approximately US$26.5 billion. Based on this, T-Mobile and Sprint’s newly merged company value is calculated. About 146 billion US dollars. The new company will adopt the T-Mobile name, with Leger as its chief executive and Klaus as a director.
Wall Street analysts are worried that in the current U.S. government, the transaction between T-Mobile and Sprint may also face the risk of being rejected because Trump's regulators refuse to buy AT&T's acquisition of Time Warner. .
Craig Moffett, an analyst with market research firm Moffett Nathanson, told the media on Monday that if the transaction between the two parties fails, the value of the Sprint may be reduced by one third. The analyst believes that the success rate of T-Mobile and Sprint transactions is 50%.
At the same time, Walter Piecyk, a research analyst at market research firm BTIG, told the media that T-Mobile and Sprint transactions are less than 40% likely to receive regulatory approval.
As the third and fourth largest wireless operator in the United States, the merger rumors between T-Mobile and Sprint have actually continued for many years. However, several previous merger intentions have failed.
Tom Wheeler, former chairman of the U.S. Federal Communications Commission, told the media on Monday that the merger between T-Mobile and Sprint was as new as before. Willer said, "I want to say that Leger is the world's best salesman, but what he is now selling is old stuff." "Wilner has always believed that in the US wireless market, the pattern of having four major operators is the most favorable way for American consumers." However, Leger himself is looking forward to another result.
Leger said, "All we hope for is to allow "Dumb and Agua" and Comcast and other operators to increase investment. We expect that they will increase the investment by another 20 billion U.S. dollars. We plan to take the lead. Three-year investment of 40 billion U.S. dollars will be something that Washington would love to see. " Leger mentioned here " Dumb and Agua ” Verizon and AT &
In addition, Klaus also told the media on Monday that it is a good time for T-Mobile and Sprint to merge, because the two companies are trying to build a large 5G network, and can also create thousands for the United States. Jobs. Klauer said, "The United States needs to occupy a leading position in the 5G field. However, the only way to promote the United States' leading position in the 5G field is to merge T-Mobile and Sprint. Verizon can't complete this job, AT&T can't. None of them can create a 5G network like ours. We believe that the merger transaction between T-Mobile and Sprint is beneficial to the United States and is also beneficial to consumers. What is clear is that we will make the service price drop. ”
Interestingly, Leger and Crow had previously attacked each other. On Monday, the two said that their previous disagreement only represented the past, and this year they will join together for a Thanksgiving feast.