Filed by
T-Mobile
US, Inc.
pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
under the Securities Exchange Act of 1934
Subject Company: Sprint Corporation
Commission File No.:
001-04721
Excerpts from a Transcript of the
T-Mobile,
US Inc. Event at the Morgan Stanley TMT Conference
November 16, 2018
CORPORATE PARTICIPANTS
Dirk Wehrse
T-Mobile
US, Inc.Senior VP of Treasury
& Treasurer
J. Braxton Carter
T-Mobile
US, Inc.Executive VP
& CFO
CONFERENCE CALL PARTICIPANTS
Simon William Flannery
Morgan Stanley, Research Division MD
***
QUESTIONS AND ANSWERS
***
Simon William Flannery
- Morgan Stanley, Research DivisionMD
Well, thats a nice pivot to your plans for the merged entity to enter the fixed broadband market. So lets start with the status of the merger.
Weve got the FCC starting the clock again. And so where do we stand? Whats the time line from here? When do you hope to get a decision?
J.
Braxton Carter
-
T-Mobile
US, Inc.Executive VP
& CFO
Well, weve been
very, very busy. First, I think a testament to John, who we all know that John is a brilliant strategist and very entertaining to watch in the business world, but the positioning that hes taken is humble and respectful of the U.S. regulatory
process and an absolute firm principle of not politicizing the regulatory process relating to this merger, not doing
end-arounds
the of the regulatory agencies and just very focused on providing the
facts to prove beyond a shadow of a doubt that the combination of Sprint and
T-Mobile,
and I do have that on my shirt, is going to actually enhance competition. Whats interesting going into this, we
thought that with the cable entry, the whole traditional
4-player
market was kind of one of the primary arguments. But whats really resonated on the hill is 2 going to 3., the creation of a third,
more-scaled national player to compete against a predatory duopoly that controls 85% of the cash flows in the marketplace. And its really interesting. That is really resonated in Washington. John and team have spent an amazing amount of time
meeting with all the agencies, with states, with senators and congressmen, telling the story, painting the picture of a truly differentiated 5G. And the kind of metric model that we did provide to the government is a thing of beauty. It demonstrates
beyond a shadow of a doubt that the combined assets of Sprint and
T-Mobile
can create 8x the 5G capacity that we -either of us could do on a standalone basis and 15x the speed. And just the basic economic
theory put very simple is, with that amount of additional capacity, the economic incentive is to fill that capacity and leverage the fixed costs versus monetize in a limited supply-type situation. We believe that we have proven that this is going to
be very competitive in the U.S. And you look at our DNA, you look at everything that weve done in the last 5.5 years, weve taken 92% of the net additions in the last 5.5 years in the U.S. marketplace. This is who we are.
So right now, weve provided all information request, did 25 million pages worth of documents to the DOJ; you saw our
600-page
PIS, public interest statement, we filed with the FCC; very heavy meetings with CFIUS, with state PUCs. And were very optimistic. Theyve been open to listening to the arguments.
Theyve been extremely engaged in asking questions, and they are in full analysis mode at this point. The only remaining thing thats happening is depositions with the DOJ, which have started, which will be complete in a few weeks. And
what were hopeful is we get some early indications of where these regulatory agencies are at by the end of this year. And the goal, we believe, is still to close this transaction in the second half I mean, Im sorry, in the first
half, probably in the second quarter of 19. You look at the shot clock with the FCC, its really implying a very early April end of that shot clock at this point, and thats why Im more pointing to the second quarter is more
probable. It can still be first quarter, but its going, we think, exceedingly well. But I think by the end of the year, well be in a much better position.
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