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Sprint Chairman Makes Case for T-Mobile Deal

2014-05-29 09:56 by
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Masayoshi Son, chairman of the Japanese firm that controls telecom company Sprint Corp., has made the argument that his firm's potential purchase of rival T-Mobile US Inc. would actually increase competition rather than lessen it.

Son has been leading a campaign to convince regulators and the public that Sprint and T-Mobile should merge to form a stronger competitor in the wireless industry. He criticized the low speeds both on the home broadband and wireless side, and stated that this situation is due to the monopoly Comcast has on cable and Verizon Wireless and AT&T have in wireless. He's hoping to break that hold - at least on the wireless side - and increase speeds while lowering prices.

"Right now there are three big players out there, and they are getting even bigger," said Son, who is also chairman of SoftBank Corp., the Japanese company that controls Sprint. "If anyone says four is better than three, I agree with that. We should be the No. 4."

Regulators, however, have refused to approve such a deal, preferring to keep four nationwide competitors in the market. They point to T-Mobile, the fourth-largest wireless carrier by subscribers, which has surged back in recent months with renewed customer growth, as an example of why a merger with Sprint shouldn't happen.

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