What Merger Will Do to Green Development

By Chris Preimesberger  |  Posted 2011-07-17 Print this article Print


Hesse said he is also worried that the merger will stifle "green" development in the industry.

"Today, the wireless industry is a terrific source of green innovation, providing tools needed to cut energy use and promote sustainability," he added. "But if the proposed AT&T/T-Mobile transaction is allowed to push the wireless industry from competition into duopoly [AT&T and Verizon], I believe wireless innovation is at risk, and thus progress toward a greener future is at risk.

"It's a well-known economic fact that the most competitive industries are also the most innovative," Hesse told the audience. "For the reasons we've discussed today, innovation and customer choice would be seriously threatened if the wireless industry becomes a duopoly, which is why Sprint is opposing the proposed AT&T acquisition of T-Mobile USA. I hope you'll not sit silent, but let your voice be heard on this important issue."

Impact of Mobile Devices

During his speech, Hesse said the impact of mobile phones on the world's communications is larger than most people realize. "Smartphones are replacing calculators, watches, camcorders, address books and cameras," he noted. "There have been more camera phones sold in a short period of time than all stand-alone cameras sold in history-digital and film. Cell phones are among the most personal things we own: [They're] where we store contacts, photos, emails and text messages.

"The downstream economic impact of a thriving wireless industry becomes undeniable. Savings for U.S. companies from using wireless technologies will increase from $18 billion in 2005 to almost $73 billion in 2016. It's estimated that in the next 10 years, productivity gains from the deployment and use of wireless devices will generate almost $860 billion in additional U.S. GDP."

A duopoly would certainly threaten this rosy future, Hesse asserted.

"We are smaller than the -Big Two,' and we know we have to be more creative-it's part of survival," he acknowledged. "Lots of things we've done, they have followed, but they can spend a lot more money than we've ever dreamed of spending in order to catch up."

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on Salesforce.com and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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