Sprint is moving forward with its effort to merge with T-Mobile, says Masayoshi Son, the CEO of SoftBank Corp., which is the parent company of Sprint.
Son has asked banks to allow financing to be on the table for a much longer period than is common, indicating that Son, SoftBank and Sprint, the third-largest carrier, are ready to go through a long and arduous process to get the deal accomplished.
But the deal faces a number of obstacles, including regulatory bodies fearing the takeover would limit competition of the mobile market. Federal telecom regulators have long said they want to maintain at least four major wireless carriers, and the merger of Sprint and T-Mobile would reduce that number to only three. However, Son argues AT&T and Verizon -- the two leading carriers by a massive margin -- have a monopoly on the market and by allowing for the merger, the U.S. would be increasingly competitive by having a third, equally viable carrier in the market.
Reports suggest lenders to Sprint are demanding much higher fees to allow the lengthy approval process to take place. Sprint has reportedly offered its rival carrier somewhere in the region of $32 billion for the merger.
But with the Federal Communications Commission and the Department of Justice likely to take at least one year to evaluate and rule on the deal, the financing options for Sprint and SoftBank are needed for the long haul. The deadline for the deal is currently at 18 months, but could be extended if both companies agree and the regulators take longer than expected.
At this year's Re/code's Code Conference in Rancho Palos Verdes, Calif., Son told the audience a deal would be a win-win for the entire mobile phone sector in the country, as it would see an increase of speeds, options and ultimately give power back to the customer.
At the conference, Son -- who goes publicly as Masa Son -- lashed out at the main operators AT&T and Verizon, arguing they have a pseudo-monopoly on the market and that if there was a merger between Sprint and T-Mobile, it would help to increase speeds and lower prices. It would be a win-win, he argued.
"We're going to provide better speed and lower prices," he vowed in his comments, which did not specifically name T-Mobile, but were apparent in his discussion.
For now, Son will be forced to wait patiently for the FCC and the Justice Department to make a decision.
