During a Goldman Sachs investor conference in New York last week, Sprint CEO Dan Hesse strongly hinted that Sprint would try to buy T-Mobile if the AT&T merger falls through.  This news is not only incredibly revealing but also hypocritical, as Sprint has positioned itself as the main opponent to the AT&T deal.  Now the true reason for their opposition comes out – they are not fighting for the best interests of consumers, they are fighting for the best interests of Sprint.

Sprint Says An AT&T/T-Mobile Merger – Not a Sprint/T-Mobile Merger – Should be Blocked

Sprint CEO Dan Hesse: “I don’t believe that what the DOJ said in any way, not even a little bit, should be viewed as we want to keep four.  My view is [the Justice Department] would look at other consolidation very differently.” [BGR.com, 9/22/11]

“Hesse disagreed with the notion that the U.S. Justice Department’s attempt to block the merger would bode poorly for Sprint’s own attempt to buy T-Mobile if the AT&T deal were to fall through.” [CNET.com, 9/21/11]

Sprint Argues Benefits of a Sprint/T-Mobile Merger

Sprint CEO Dan Hesse said combining “two value players” would give them better scale and a better cost structure to compete against AT&T and Verizon.  Hesse: “That is an advantage that outweighs having a smaller three and four.” [Dow Jones Newswires, 9/21/11]

Sprint CEO Dan Hesse:  “I am not saying whether Sprint or T-Mobile, if this didn’t happen, would merge or not or whether we have an interest in that or not. But you could make a very, very strong argument.”  [Dow Jones Newswires, 9/21/11]

Sprint Tried to Buy T-Mobile Before AT&T and Failed

Sprint was one of the first and biggest opponents of the T-Mobile deal, having failed to buy the wireless carrier itself earlier this year. [New York Times, 9/6/11]

At that time, analysts called a possible Sprint-T/Mobile deal “the worst idea ever” noting that “a union between the companies would likely result in disaster. Sprint and T-Mobile’s 3G networks are completely incompatible, and at the moment the companies are also pursuing completely different 4G strategies. T-Mobile is focusing on expanding its 3G network with HSPA+ technology, while Sprint is counting on its majority stake in Clearwire to deliver WiMAX 4G. Having the separate networks coexist under a single company sounds like a major headache, and it would be years before Sprint and T-Mobile subscribers could coexist on the same network.” [VentureBeat.com, 3/8/11]

Sprint, the nation’s third-largest carrier, was mentioned as a possible T-Mobile suitor in the past, and there had also been speculation the two could strike a lesser deal to share network technology and expenses. [Dow Jones Newswires, 9/21/11]