Softbank CEO Claims He Would Start Huge Price War if Sprint Allowed to Buy T-Mobile

[dgstorm]

[video=youtube;WZNqs5fLKIU]https://www.youtube.com/watch?v=WZNqs5fLKIU[/video]​

Softbank CEO (and Sprint chairman) Masayoshi Son made some audacious claims in an interview with Charlie Rose recently. He indicated that if Sprint were allowed to purchase T-Mobile, he would have the power to start a massive price war with Verizon and AT&T which would ultimately benefit the American consumer. He is ironically arguing that fewer competitors in the industry would still foster greater competition. This flies in the face of the average glance at economics; however, there still might be some truth to his particular brand of logic.

Based upon his own past history, Son took one of the smallest cellular carriers in Japan and with aggressive network expansion and very aggressive price cuts was able to grow into the number two powerhouse carrier in Japan. Son made the comment,

”I would go for price competition very aggressively, and network competition to create the world’s best network. I want to be #1.”

Sometimes, it's that killer instinct/"eye of the tiger" which can define how an industry progresses. Son further explained his perspective by adding that he considers the US cellular industry a “pseudo competition.” He elaborated that the only way to mount a real challenge to Verizon and AT&T would be if US regulators allowed T-Mobile and Sprint to merge, arguing that combining the forces of these two carriers was the only way to mount a serious challenge to the current duopoly. Son claimed that he would make sure Sprint lead the charge in a massive price war.

Just last month, Son and Sprint CEO Dan Hesse met with Washington regulators from the FCC and the DOJ, but that meeting proved unfruitful. Son is scheduled to speak to them again today to attempt to convince them that his plan is ultimately good for the American consumer. What do you guys think?

Source: WSJ

 

[jspradling7]

I love that pose he's in. "I couldn't help myself, so I just reached out to her and... "

 

[swc2001]

Good in theory.... however I would like to see it done without the acquisition of T-Mobile. I think both carriers need to strive towards this. Do so by cooperating... give each other license to use each others towers.... A mutually beneficial relationship. Then both companies aggressively go after the big boys!!! yeah then they would be forced to not only reduce prices but to bring unlimited data back..... as it should be. NO MORE EXTORTION!!! Almost 3000 dollars a year for two phones.... that is ridiculous!!! it should be about half of that cost!

 

[akhenax]

I love that pose he's in. "I couldn't help myself, so I just reached out to her and... "

LOL. Let's keep it going.

"...so I asked him to toss me the ball and he looked at me with sadness. We lost the basketball game that day."

or...

"...I saw the cat and grabbed it before it could flee. Stupid cat."

 

[jspradling7]

"No, when I said a I wanted a hamburger, I meant a HAMBURGER!"

 

[majicjazz]

Do Not believe him, he is lying. Once they merge they will become the same as the other two monopolies

 

[kodiak799]

I'm sure actually doing this would go over REALLY WELL with investors. Simply not big enough with deep enough pockets to hold out long enough to do real damage. All they would do is destroy their bottom line, until some vulture swooped in to pick them up cheap.

Even TMo is beginning to quietly push some minor price increases. Entirely predictable - their efforts have been a big expense to acquire customers and eventually they are going to monetize that increase in their subscriber base.