59272 Sprint's Position Is Worse Than T-Mobile Pre-Turnaround – John Legere

Sprint’s Position Is Worse Than T-Mobile Pre-Turnaround – John Legere



Sprint is in a worse position than T-Mobile prior to its turnaround, according to T-Mobile CEO John Legere. Because of that, the company reportedly isn’t in a position to make its own turnaround. Unlike Sprint, the executive says, T-mobile had many benefits to pull from in order to make its comeback. Those range from the AWS spectrum from its MetroPCS acquisition as well as extra cash Sprint doesn’t have.

That acquisition also helped the company to scale up, according to Mr. Legere. That’s in large part due to existing infrastructure and spectrum licenses. Sprint has neither the capital or the investor interest to make a turnaround. Mr. Legere says that the company’s position is just much more ‘dire’ and would require support that isn’t there.

Legere may still be in a position to talk about turnarounds

Mr. Legere’s points were made in response to questions from U.S. District Judge Victor Marrero about whether or not the merger is the only thing saving Sprint. Questions were also raised about whether or not T-Mobile could continue on its self-proclaimed un-carrier after becoming a much bigger company through a merger with Sprint.

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The line of questions, stemming from a group of state attorneys general opposition to Sprint’s merger with T-Mobile, at first glance seems untenable. Mr. Legere is currently slated to leave the helm of the company as of May 1.

Currently, rumors speculate that the executive will take over a similar position with American commercial real estate and shared workspaces company WeWork. John Legere will be leaving T-Mobile regardless and isn’t in a position to discuss the future tactics of the company. Or at least that’s the case outside of the promises T-Mobile and Sprint have made with regard to future activity.

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Although the two companies have launched a campaign centered on the creation of jobs and infrastructure as well as competitive pricing, Mr. Legere can no longer guarantee that. And that’s a point that’s stuck with the attorneys general in question.

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What Mr. Legere can speak on is the current state of affairs, with comparisons between the present Sprint position and the position of T-Mobile at the time of its turnaround. Since the executive has been overseeing the approved merger and was with T-Mobile in 2012 when the turnaround happened, he can make direct correlations between the two.

Adding to Sprint’s troubles, the company’s branding and its position amid a switch over to 5G, are going to get in the company’s way on its own. Carriers, he pointed out, need to spend much more capital than normal during transitions. Sprint doesn’t have that liquidity.

Where does the T-Mobile Sprint Merger go from here?

As noted above, the ongoing questioning of Sprint and T-Mobile arises from a case brought by several state attorneys general in a bid to halt the merger between the two. The pair has promised a massive number of jobs over what would currently be possible and to provide strong competition for consumers against the other big two carriers.

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Moreover, the companies have pledged to sell off key Sprint assets such as Boost Mobile, with both Boost’s founder and Dish offering to buy out the assets.

That case isn’t showing any signs of letting up any time soon and the companies have stated that they won’t proceed until that’s brought to a close.

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