This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Softbank's Son Pitches Benefits of T-Mobile Deal

Stocks in this article: CMCSAVZ

NEW YORK (The Deal) -- In response to a stiff-arm from the U.S. Department of Justice, Masayoshi Son, chairman of Sprint and its Japanese parent SoftBank, on Tuesday stepped up a public relations campaign to sway U.S. policymakers and broadband consumers to accept his wish to merge Sprint with Deutsche Telekom AG's T-Mobile USA Inc.

In a speech held at the U.S. Chamber of Commerce headquarters in Washington, Son told an audience of journalists, telecom lobbyists and public interest group leaders that Softbank/Sprint is prepared to transform its U.S. operations into a new competitor to the broadband duopoly of Comcast  (CMCSA) and Verizon Communications  (VZ). Son mixed the practical appeal of helping the U.S. move past being a laggard in broadband speed and pricing with his own emotional rags-to-riches life story in reaching out to his audience.

Son didn't mention T-Mobile directly, but the implied purpose of his speech was to generate allies in his fight to convince the DOJ to look at a potential merger with Sprint differently. Rather than look at the merger simply as a combination of mobile phone providers, he wants antitrust regulators to view the deal as one between broadband providers. This distinction is critical because the DOJ has signaled to Son it is very likely to challenge a merger with T-Mobile because it would reduce the number of players in the mobile phone market from 4 to 3.

However, if Son can convince the antitrust regulators to view the affected market as the entire range of broadband players, not just mobile phone providers, the deal might look much less anticompetitive.

Son knows he still has a long way to go before convincing skeptical antitrust regulators and the Federal Communications Commission, which also must approve a T-Mobile deal. Only a few moments after Son's speech, the company announced it has hired Bruce Gottlieb to head the company's new Washington office and continue pressing Son's message. Gottlieb previously was president of the Washington political publication National Journal. He also has served as legal adviser to FCC Commissioner Michael Copps from 2006 to 2008, and on President Barack Obama's transition team. He also has been a staff writer for Slate.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs