SoftBank main man Masayoshi Son – the company that now owns Sprint – spoke to the U.S. Chamber of Commerce yesterday in what most assuredly was meant to garner propaganda headlines aimed at the FCC. Not that the regulatory body overseeing a proposed merger of Sprint and T-Mobile doesn’t already have all the facts it needs to make a decision.
My guess is that was it was a play by Son to curry favor for an approval.
The new Sprint BMOC, (big man on campus), who describes himself as blunt and frequently yells at the execs inside his newest telephone play toy, says that if regulators let him take over T-Mobile that he will revolutionize the American cellphone market the way he did Japan’s, complete with price wars and faster bandwidth speeds.
So how fast is fast? Son wants to provide 1 gigabit per second, same as Google Fiber.
For you non techies who don’t know how fast 1 gigabit per second actually is, it’s so fast, Harley’s comments will show up practically as soon as he thinks them!
Son drew a bead on smaller rival T-Mobile soon as he had Sprint in his grasp.
Yes, they are smaller, but T-Mobile is still a significant player and the Commission is giving this deal extra scrutiny. And while Sprint has been lessening its churn – the term used for customers going out the back door faster than they come in the front – T-Mobile has continued to grow a loyal customer base with top notch customer service and a good solid signal.
T-Mobile is a great get for Son. Sprint spent millions opposing a 2011 T-Mobile take over by AT&T, and now is selling the story of why it makes perfect sense for Sprint to buy it.
Sprint has placed all its cards on the table trying to hard sell the FCC on what they call Verizon and AT&T’s “duopoly.” Sprint’s position being that those two firms, when combined, are too big and have already kept competition out.
Adding T-Mobile to the Sprint family will level the playing field.
Son’s hopes that message, complete with promises of a price war, is exactly what regulators want to hear. And that it will push the Commission over the edge to approve the merger with Sprint, which I think it will.
Not because of the message, but because it makes perfect sense.
You’re going to see this deal get approval.
And, with these two firms combined, Son will be able to stand behind his price and speed commitment, a win-win for the general public.
Antitrust rabble rousers remain opposed to this merger just as they were the AT&T proposal, but I’m betting this ends up looking like it makes much more sense in the marketplace.
Son said he declared a price war in Japan and as a result, “The cost for each subscriber has gone down. Japan uses 50 percent more data than the United States, but American consumers pay 1.7 times more than Japanese consumers.”
I say let the Son shine on the T-Mobile/Sprint merger. What’s not to like about it?
Plus, it makes me giggle every time I read about Son yelling at the Sprint execs. He’s got my vote on that count alone!