Verizon Communications CEO Lowell McAdam said Verizon Wireless could easily drop wireless contracts in the wake of T-Mobile USA's decision to do so--if consumers start asking for it. His comments reiterate what other top industry executives have said: That they will be watching to see how the market reacts to T-Mobile's new model and will respond accordingly.
Sprint Nextel CEO Dan Hesse, Softbank CEO Masayoshi Son and Clearwire CEO Erik Prusch recently met with FCC Chairman Julius Genachowski and other FCC commissioners to argue that regulators should approve their various deals, according to FCC filings.
Sprint Nextel CEO Dan Hesse is looking past the company's planned $2.2 billion acquisition of Clearwire as he seeks to catch up to larger rivals Verizon Wireless and AT&T Mobility.
Sprint Nextel is open to the idea of dropping subsidies on its phones as T-Mobile USA plans to do, but is taking a cautious approach as it looks at the impact on the market and the economics of such a move, according to senior executives.
Sprint Nextel, in the midst of extricating itself from its legacy iDEN Nextel business, posted a net subscriber loss of 337,000 wireless customers in the fourth quarter. The carrier also reduced its LTE buildout plans for 2013.
Clearwire said it is still considering Sprint Nextel's $2.97 per share offer to buy the 50 percent of Clearwire that it does not already own--and Clearwire is still considering Dish Network's unsolicited $3.30 per share counterbid for Clearwire. However, Clearwire said its special board committee that is evaluating the deals has not changed its recommendation to accept Sprint's bid.
Every year wireless companies make investments and decisions to plan for the future. It's just part of doing business. However, this year a number of companies made moves that will legitimately set them up for years of growth ahead. The deals that were announced, if they get approved by regulators next year, will reshape the U.S. wireless industry.
Sprint Nextel CEO Dan Hesse is celebrating five years on the job this week, and looking back he points to his decision to move against AT&T's proposed $39 billion purchase of T-Mobile USA as the most pivotal moment so far in his time at the top of Sprint.
Sprint Nextel's $2.2 billion deal to buy Clearwire now has the stamp of approval from Clearwire's board, but a range of issues and obstacles continue to block Sprint's long-term wireless vision.
Sprint Nextel and Clearwire agreed to a transaction where Sprint will acquire the rest of Clearwire for $2.97 per share, or $2.2 billion. The figure is slightly more than the $2.1 billion bid Sprint proposed last week.