What Merger Will Do to Green Development
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.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."
"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."