T-Mobile Legere Justifies Possible Merge With Sprint

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It’s still unclear whether T-Mobile (NYSE:TMUS) and Sprint’s (NYSE:S) consolidation deal will go through, but T-Mobile CEO John Legere opened his mouth this week to defend the possible merge and argue that an approved deal with Sprint would help the two carriers combat the “duopoly” that he believes Verizon Wireless (NYSE:VZ) and AT&T (NYSE:T) currently enjoy. According to Bloomberg, the unconventional chief executive was the subject of an interview conducted by Emily Chang on Bloomberg West this week, and when asked about his rumored deal with Sprint, he told Chang that T-Mobile requires more airwaves and other resources to take on Verizon and AT&T, and a consolidation with Sprint could help it meet those needs.

Legere explained to Chang that, “We all need better scale and capability. The question starts to be: How do you take the maverick and supercharge it? We either need more spectrum and capability and a lot more investment, or we need consolidation.”

Legere thus was not shy about discussing the merger deal that many Sprint and T-Mobile shareholders are currently pushing. Insider sources have said since December that Sprint’s majority owner, Softbank Corp, is working to negotiate a consolidation pact with T-Mobile, and the T-Mobile chief executive has not been quick to deny those reports. Rather, Legere has been adamant about justifying the deal, and his latest comments may be purposed to help convince regulators that a merge with Sprint wouldn’t dull T-Mobile’s edge, but actually sharpen it. Sources say that regulators’ biggest concern is that a merge with Sprint would result in the carrier industry losing its most aggressive competitor, and Legere now recognizes the needs to alleviate those concerns.

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