Tuesday, March 22, 2011

Sprint (S) CEO Hesse Fears AT&T (T), T-Mobile Deal

In a deal that could result in Sprint (NYSE:S) being considered largely irrelevant, CEO Dan Hesse said he believes the deal would "Stifle Innovation," i.e. they couldn't compete with the new entity.

Hesse's comments were made at the CTIA WIRELESS 2011 Conference today, where he was part of a keynote address to launch the event.

CEOs from AT&T (NYSE:T) and Verizon (NYSE:VZ) were also part of the keynote.

Hesse noted that the merger of T-Mobile and AT&T would result in a 79 percent market share in the U.S. if it is allowed to proceed.

Verizon CEO Dan Mead on the other hand wasn't that concerned, saying his company has also grown via M&A, and there is a lot of competition in the wireless sector.

Sprint was trading at $4.51, gaining $0.1475, or 3.38 percent, as of 12:02 PM EDT.

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