Proxy adviser Institutional Shareholder Services signaled its opposition to Sprint CEO Dan Hesse's $49 million pay package for 2013. The challenge comes just weeks before Sprint's annual shareholder meeting, scheduled for Aug. 6.
Sprint CEO Dan Hesse said that creating a bigger No. 3 carrier in the U.S. market would lead to better coverage in rural areas. Though Hesse did not specifically address a merger between No. 3 carrier Sprint and No. 4 carrier T-Mobile US, in an interview with Cnet he said that the creation of a larger rival to AT&T Mobility and Verizon Wireless would likely lead to that third carrier providing better coverage in rural areas.
The T-Mobile US brand will continue to thrive and the Sprin brand will likely take a back seat to T-Mobile if the two companies merge, according to a CNBC report.
Sprint and T-Mobile US are reportedly closing in on a deal for Sprint to pay around $32 billion for T-Mobile, and while the deal is not yet final, financial analysts say that Sprint would need to slash its prices to match those of lower-cost T-Mobile if the deal went forward.
T-Mobile US CEO John Legere would likely lead a combined company if Sprint and T-Mobile were to merge, according to a Bloomberg report. Legere is just one of the personalities at the center of the deal, which is being driven by SoftBank CEO and Sprint Chairman Masayoshi Son.
Sprint CEO Dan Hesse said he does not see the carrier going head-to-head in the near-term with the likes of Comcast, Verizon Communications and AT&T in the market for wired home broadband Internet access. Hesse's comments, made during a Sprint meeting with industry analysts and relayed by an analyst, stand in contrast to the long-term vision of Sprint Chairman and SoftBank CEO Masayoshi Son, who has said Sprint could eventually compete in and shake up the wired broadband market in the U.S.
Sprint CEO Dan Hesse said that, without a stronger No. 3 U.S. wireless carrier, Verizon Wireless and AT&T Mobility will continue to gobble up the lion's share of profit in the industry. However, he said that in any hypothetical merger between Sprint and No. 4 player T-Mobile US, Sprint would have to work hard to convince regulators to approve it.
Verizon Wireless confirmed that it expects to introduce VoLTE this year and will simultaneously roll out mobile high-definition (HD) voice using the W-AMR speech compression algorithm.
In its most recent quarter, Sprint reported improving financials, but the company lost 231,000 postpaid customers and 364,000 prepaid customers. However, Sprint promised to reverse that trend in the second half of this year by posting positive net customer adds in the final six months of 2014. Further, the company said that it has embarked on a marketing campaign touting "America's Newest Network," now available in 20 cities, intended to highlight its more reliable and faster wireless network.
T-Mobile US CEO John Legere has been unabashed and aggressive in getting the carrier back to growth, delivering 3.7 million net new subscribers from the second through fourth quarters of 2013. He also was paid to the tune of $29.2 million in 2013, making him the second highest paid wireless executive in 2013 after Sprint CEO Dan Hesse.