MOMENTS GOT WORSE.
FIND OUT IF YOU LIVE IN THE
TELECOM GIANT T-MOBILE AND
SPRINT HEADED TO CAPITOL HILL,
THE WIRELESS PROVIDERS LOOKING
TO GARNER SUPPORT FOR THE
PROPOSED $26 BILLION MERGER.
ANTITRUST COMMITTEE.
JOINING US IS BOOST MOBILE USA.
THANKS FOR JOINING US.
YOU HAVE BEEN OPPOSED TO THIS
MERGER, TELL US YOUR CONCERNS.
>> WE ARE NOT FUNDAMENTALLY
OPPOSED BUT A HUGE AMOUNT OF
THINGS NEED TO TAKE PLACE.
IF YOU LOOK AT WHERE SPRINT AND
T-MOBILE ARE THIS IS ABOUT
STRUGGLING, NOT POWERS COMING
TOGETHER OR THE CHINA RACE BUT
DECIDING THEY NO LONGER WANT TO
INVEST IN SPRINT.
IF YOU LOOK AT THAT IS THE
PREMISE OF MERGING THESE
COMPANIES, THAT IS BARELY A
MERGER.
THAT IS T-MOBILE BUYING
SPRINTS.
PREPAYING CUSTOMERS THAT YOU
HAVE TO ESTABLISH CREDIT.
BACK THEN IN 2000 WHEN IT WAS
41% PENETRATION SO STILL A HUGE
AMOUNT OF GROWTH IN THE
BUSINESS.
THERE IS OVER 100% PENETRATION,
THEY HAD BEEN USING PREPAID, I
AM CONCERNED THEY WILL GO UP.
I HAVEN'T SEEN A MERGER WHERE
YOU TALK ABOUT SYNERGIES AND
PEOPLE EMPLOY MORE PEOPLE AND
LOWER PRICES.
BOTH THESE COMPANIES, SPRINT
AND T-MOBILE HAVE $75 BILLION
OF DEBT TO THE NEAREST
IMPAIRMENT IS THE MOST INDEBTED
COMPANY IN THE WORLD WHICH IS
AT&T, AND THEY LOWER PRICES
INCREASING THEIR DEBT AND
AVERAGE CONSUMERS PAY FOR THIS
AND THE TRICKLE-DOWN EFFECT IS
INDEPENDENT WIRELESS DEALERS,
THEY DISSEMINATE PRODUCTIVITY
AREAS WHERE PEOPLE GET POOR LOW
INCOME CREDIT AREAS THAT ARE
IMPORTANT.
DON'T EVEN MENTION IT, 750 752
THE FCC DON'T MENTION PREPAID
>> WHEN I LOOK AT IT YOU HAVE
VERIZON WIRELESS, AT&T WIRELESS
AND THESE COMPANIES COMBINING
WOULD BE
AND THESE COMPANIES COMBINING
WOULD BE THE NUMBER 3 WIRELESS
PROVIDER, SEEMS LIKE FAIR
COMPETITION AND THE HOPE WOULD
BE THERE WOULD BE LOWER PRICES
A LOT OF CONSOLIDATION BUT
ULTIMATELY MY CABLE BILL IS
ACTUALLY GET LOWER PRICES FOR
CONSUMERS.
VERIZON DOESN'T PLAY IN THE
FREE SPACE BASE AT ALL, IT IS A
SMALL PART OF THEIR BUSINESS.
I WOULD ARGUE IF YOU ACTUALLY
HAD COMPETITIVE BRANDS BUT YOU
DON'T, THE TWO BRANDS THAT
BROUGHT THE PRICES DOWN TO THE
LEVEL WE ARE SEEING OUR
T-MOBILE AND SPRINT AND IN THE
PREPAY SEGMENT IT IS METRO PCS
AND THE BRAND I FOUND AT BOOST
MOBILE AND THEY DROVE THE PRICE
DOWN AND THEY HAVE AT&T, I'M
NOT AGAINST THE MERGER BECAUSE
IT WILL TAKE PLACE NO MATTER
WHAT.
SPRINT SURVIVING THROUGH THIS,
IF YOU ARE GOING TO DO IT DO IT
RIGHT.
REALITY.
DAGEN: A SIMPLE SOLUTION WOULD
BE ONE OF THE PREPAID BRANDS
AND AN OBVIOUS BUYER OUT THERE.
THAT IS SOMETHING THESE
COMPANIES COULD DO.
>> THAT IS THE PART WE ARE
PUSHING FOR.
NOTHING, A LARGE PART OF
CUSTOMERS, I DON'T SEE HOW THAT
IS REFLECTIVE OF HOW A
MARIA: YOU ARE ASKING FOR PRICE
PROTECTION FROM NETWORK
OPERATIONS.
OF PEOPLE DON'T UNDERSTAND THE
CARRIER NETWORK.
YOUR COMPETITOR IS
DISINGENUOUS, THERE IS TOTAL
CONTROL OVER THAT AND WHEN YOU
LOOK AT THE MARKETPLACE, IF WE
HAD THREE SOLID BRANDS THE
ARGUMENT WOULD BE THERE BUT IT
IS SIMPLY NOT THERE AND THEY
LOOK AT COMCAST AND CHARTER,
DOESN'T STACK UP, THOSE MOBILE
NETWORKS CONTROL PRICING AND
RETAIL DISTRIBUTION.
DON'T SEE HOW THAT WILL CREATE
COMPETITION.
DAGEN: HOW DO YOU THINK THE
BACKDROP CHANGES WITH AT&T AND
HOW MUCH WAS THE MEDIA
ENVIRONMENT IN YOUR VIEW?
>> I HAVE BEEN PREACHING MOBILE
AND MEDIA COMING TOGETHER,
DISTRIBUTION IS THE EMPEROR.
I AM PUSHING THAT A LOT.
LOOKING AT AT&T AND TIME
WARNER, SPRINT STOCK PRICES
SOARED, THIS IS A FREE-FOR-ALL.
I DON'T SEE THAT.
EVERY MERGER WILL BE LOOKED AT
INDIVIDUALLY FOR THE BENEFITS
TO THE CONSUMER.
I'M NOT WRAPPED UP IN THAT.
YOU HAVE TWO BUSINESSES IN AT&T
AND TIME WARNER, TWO OUTDATED
BUSINESS MODELS COMING TOGETHER
TO CREATE THE BUSINESS MODEL.
THESE GUYS HAD 15 YEARS TO BE
DISRUPTIVE.
I AM NOT LOOKING FOR A PROGRAM
LIKE THAT, THE REASON NETFLIX
AND GOOGLE AND YOUTUBE, PEOPLE
WANT TO THE CHOICE, EASY ACCESS
TO THEIR CONTENT AND FACEBOOK
AND GOOGLE IS A REASON TO LET
THE MERGER GO THROUGH.
TO ME WAS QUITE FUNNY
CONSIDERING WE ALL KNOW
FACEBOOK AND INSTAGRAM AND
TWITTER IS YOUR OWN CONTENT,
VERY MUCH A 2-WAY EXPERIENCE
WHERE WHEN YOU LOOK AT THAT, IT
IS A 1-WAY EXPERIENCE.
I THINK WE WILL SEE MORE THAT.
IT IS WRONG, THE REASON FOR
DOING IT FOR THE REASONS THEY
THAT IMPACT ON AT&T AND TIME
WARNER, YOUR SUBSCRIBERS WITH
MEDIA CONTENT CREATING A
COMPELLING AD PLATFORM.
AND THE CONTENT COMPANIES,
REALLY EFFECTIVELY ARE GOING TO
NEED BRANDS LIKE AT&T AND I SEE
THAT IN THE LONG-TERM OF THEM
BUYING THOSE COMPANIES.
MARIA: WHAT DO THEY HAVE?
$240 BILLION?
THEY CAN BUY PLENTY.
MARIA: APPLE ACQUIRES AT&T,