In Sprint Trial After SoftBank
Marcelo Claure Info Is Handed To Judge
Marrero Only
By Matthew
Russell Lee, Patreon
SDNY COURTHOUSE,
Dec 16 – After more states
lining up against the proposed
T-Mobile / Sprint merger, on
which a two week trial to
begin December 9 before U.S.
District Court
for the
Southern
District of
New York Judge
Victor
Marrero. Inner
City Press
began what
will be a
trial-long
live-tweet, here.
Day II morning
here.
More on
Patreon here.
Day III here.
More D3 on
Patreon here.
Day IV here.
More D4 on
Patreon here.
Day V here.
More on D5 on
Patreon here.
Day VI here.
More on D6 on
Patreon here.
On December 16
SoftBank's
Marcelo
Claure,
Sprint's
Michel Combes
and T-Mobile's
Ankur Kapoor
testifed;
during the
last Judge
Marrero was
told to look
at papers
handed to him
containing
ostensibly
confidential
congestion
information.
Isn't it a
public
interest
trial? Here's
some
of how it went,
more on
Patreon here
Paula
Blizzard's
flurry of
questions to
Neville Ray
didn't stick,
it seems, at
least not with
Judge Marrero.
Next he's
questioned
again by
George Cary,
about
@MetroPCS
/
@MetroByTMobile
. And now
Blizzard
re-raises that
he's a hybrid
fact / expert
witness
Judge
Marrero asks
if a support
witness will
also be
testifying,
"in order to
avoid this
taking up more
time."
Coming to the
the
stand:
@Sprint 's
(&
@SoftBank
's
@marceloclaure
, questioned
by Steve
Sunshine who
estimates it
will take an
hour.
Claure
says
@Sprint
made a lot of
mistakes on
technology
which, given
the business
it is in, made
for problem
and "massive
cost cutting."
Sunshine:
Let's start
with the cost
cutting. How
much? Claure:
We took out
$10 billion in
cost, mostly
through
layoffs.
Claure: Sprint
was losing $5
billion a
year. So we
decided to go
in 2014 with a
small cell
network to
avoid paying
rent for
towers. This
way we could
utilize our
spectrum.
Sunshine: Had
anyone else
tried this?
Claure: No,
our
competitors
used low band
spectrum.
Claure:
I can assure
you
@Comcast
remains
opposed to
this merger
since it would
hurt them.
Sunshine: What
about Altice?
Claure: Same.
There's no
cable operator
that supports
it. They are
monopolies and
they knew that
New T-Mobile
would compete
on in-home
broadband
Sunshine:
What about
DISH? Claure:
We concluded
that doing a
merger with
them, there
would be no
synergies, no
new customers
and the amount
of money it
would cost us
to build a
nationwide
network, the
combined debt
was $48
billion. So it
never got
serious
Sunshine:
Can
@Sprint
get more
funding
from
@SoftBank ?
Claure: No.
It's written
all over our
public
filings.
#Softbank is
an independent
publicly
traded company
that can only
make
investments
that make
sense.
Claure:
What we've
done for
Sprint was to
save it from
bankruptcy.
But we were
not able to
make it a long
time
sustainable
company. With
5G coming,
there's
nothing more
we can do with
Sprint.
Turn-around
plan will not
work.
And
with that,
Judge Marrero
is off the
bench. Q: In
2017 you had
some
discussions
with T-Mobile
about a
merger,
correct?
Claure:
Correct. Q:
Here's your
Nov 4, 2017
press release
- do you
recognize it?
Claure: Yes.
Q: You said,
best to move
forward on our
own. We have
rich spectrum
holdings.
Q:
Do you recall
speaking at a
Wells Fargo
conference a
few days after
that? Claure:
Yes.... We had
no choice. We
had to
continue to
operate a
stand-alone
business.
Q:
I would like
to talk a
little bit
about the
Altice deal...
This is an
MVNO
arrangement,
right? Claure:
Correct. Q:
Cable
companies like
Altice have
limited
footprints,
right? Claure:
That's
correct.
[Judge Marrero
has put his
head into his
hands.]
[hours
later] Next
witness is
Ankor Kapoor.
Judge Marrero
is told that
the Q&A
will include
some sensitive
information
and so "code
words" will be
used.
Inner City
Press: What,
beyond Tahoe,
Salt and
Diamond?
Kapoor: We do
network
capacity
planning
process at
T-Mobile... Q:
Do individual
consumer
experience
different
speeds?
Kapoor: Yes,
the speed is
very
localized. Q:
How we're
getting to the
sensitive
information. I
apologize in
advance for
the
awkwardness.
Explain
congestion.
Kapoor: We
measure speed
at sector
level.
Kapoor:
Because of
increasing
demand we had
to double our
threshold to
meet consumer
expectation.
Q: Are you
expecting to
raise
threshold for
5G? Kapoor:
Yes...
Q-er:
"It will be
the threshold
on the sheet."
[not
public]
On December
13, T-Mobile's
John Legere
was
cross-examined
and let it all
hang out, see
below. Next up
a more
corporate Mike
Sievert
testified.
Inner City
Press
live-tweeted
it, then
published it
story and
tweeted a link
to it.
An
hour later a
public
relations
representative
emailed Inner
City Press
requesting a
change. Not of
the analysis,
but to be sure
to spell
Sievert
correctly:
"Hi
Matthew – I’m
reaching out
on behalf of
my client in
hopes that you
can make one
minor
adjustment to
your tweet
from 9:12pm ET
(pasted below
for
reference). If
you could
change
“Siebert” to
“Sievert” that
would be much
appreciated.
Thank you and
please have a
great
weekend.
COURTROOM
CHRONICLES: In
@Sprint Merger
Trial
@JohnLegere of
@TMobile Shows
Himself As
#SDNY Judge
Marrero Asks
About Flower
Children,
Before Low
Energy Mike
Siebert
@SDNYLIVE"
And who was
it, who
requested this
correction
(which Inner
City Press did
in a
reply)?
A Vice
President at Abernathy
MacGregor,
Strategic
Communications
Counsel --
representing
T-Mobile.
"Just spell my
[Mike's?] name
right?"
Legere's
testimony
culminated in
Judge Victor
Marrero asking
him if he
could remain a
flower child
or would
instead, post
merger, join
the boys'
club. Legere
said never -
but his
successor Mike
Sievert then
looked very
much the boys'
club member.
How will it
cut with
Marrero?
Here's some
of how it went
(more on
Patreon here)
Back
on December a
final
pre-trial
conference was
held. The
plaintiff
states' lawyer
Glenn D.
Pomerantz
dominated the
conference,
going through
each of the
four points in
his letter to
Judge Merrero
and more.
T-Mobile or
Deutsche
Telekom's
lawyer David
I. Gelfan of
Cleary
Gottlieb
wanted more
than 50% of
the time
allotted.
Judge Marrero
shot that
down, saying
that to him
equitable
means cut in
half. Judge
Marrero
largely tried
to avoid the
disputes,
urging the
lawyers to
settle their
conflicts and
try their
cases.
Where
Judge Marrero
drew the line
was on timing
and exhibits.
He still aims
at a two week
bench trial,
saying he's
willing to go
to six pm to
accomplish
that. He urged
exhibits to be
agreed in
advance. He
said one of
the questions
will be
DISH.
There will be
a Comcast
witness. Inner
City Press is
covering the
trial. The
case is State
of New York,
et al., v.
Deutsche
Telekom AG, et
al.,
19-cv-5434
(Marrero).
***
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