In Sprint Trial Legere of T-Mobile In
Magenta Tie Tries To Super-Charge SDNY
By Matthew
Russell Lee, Patreon
SDNY COURTHOUSE,
Dec 12 – 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.
On December
12, T-Mobile's
John Legere
took the
stand. He was
wearing a
black jacket
and a magenta
tie; he'd had
to wait while
a Comcast
witness
testified.
Here's some
of how it
went:
Q:
Can you tell
me what the
un-carrier is?
John
Legere ,
launching into
it: There was
a way of being
very
successful by
being the
exact opposite
of them.
Identifying
pain points
for the
customer and
solving them.
I said, we are
going to fix a
stupid
industry.
Legere:
We said, we
can be
different than
them, and
successful.
Judge
Marrero: Is
there any
relation
between the
un-carrier and
the UN
Cola?
Some laughter
in the
courtroom.
Lawyer: We'll
leave the Un
Cola for
another trial.
Q:
Did you
memorialize
this
un-carrier in
a document?
Legere: In the
very beginning
when I was
attempting to
take this
company with a
high churn
rate, &
tell them, we
are going to
fix this
industry. It
was quite
possibly an
arrogant
statement. We
wrote a
manifesto
Legere:
Every time we
do an un
carrier move,
it is to make
everyone else
follow. I tell
customers, we
won't stop. Q:
Did you share
the manifesto?
A: Yes. My
majority
shareholder
was a bit
confused about
this un
carrier and
what was going
to take place.
Legere:
In early 2013,
I gave a talk
to 1500
Deutsche
Telekom
executives. I
read them the
manifesto. And
that was the
starting
point. Q: Turn
to exhibit
5103.... "We
are unafraid
to innovate."
Is that what
your read to
the DT
executives?
Legere: Yes, I
did.
Q:
"We are the un
carrier, we
will be
unrelenting."
Have you been
that? Legere:
We have. Q:
Describe how
these
principles are
unleashed...
un carrier
moves. Legere:
The move to
identify pain
point and
solve them -
were customers
willing to
tell you what
they were?
Legere:
I was doing an
event in Las
Vegas with Joe
Torre, an
announcement
with Major
League
Baseball. But
all the
questions were
about the un
carrier. The
first was to
eliminate
contracts. I
would leak out
through social
media, save
the
date.
Legere:
It's not of
the quality of
a Tesla event,
but we do a
pretty good
job. Q: OK,
I'm not going
to take the
court's time
for each un
carrier move.
5015, 5017,
5021, 5023,
5042 - there
are a lot of
them - 5117,
5192 and 5290.
Judge Marrero:
Will that be
enough?
Q:
If you could
turn, Mr
Legere, to
exhibit 5088,
un carrier 10,
binge
on.
Legere: When
customer
started using
video
streaming, we
listened to
customers.
Interesting,
sometimes they
say the most
ridiculous
things, you
don't think
you can do it.
But you can.
Legere:
We didn't even
have the
i-Phone. Apple
wouldn't give
it to us
unless we
could show
nationwide 4G.
Q: What if
this merger
doesn't move
forward?
Legere: We no
longer have
"line of
sight" of
where we need
to go. It's
going to
require
significant
investment
Legere:
The 5G network
capability it
will create is
unlike
anything that
exists in the
world so far.
The creation
of the company
has a
self-funding
nature to it.
It will
[would?]
super-charge
the un
carrier.
Q:
Thank you Mr.
Legere. Let's
turn back to
challenges Q:
So you wrote
positively
about a merger
of T-Mobile
and DISH?
Legere: Yes,
as long as it
didn't
preclude
secondary or
tertiary
transactions.
Q: You like
the word
"super-charge,"
don't you? A:
Yes, I aspire
to it.
Q:
And isn't it
correct, Mr.
Legere, what
you view a
merger of
T-Mobile and
DISH as just
as good as a
merger between
T-Mobile and
Sprint?
John
Legere : There
is no
comparison at
all. Q: You
said, "I don't
believe I have
ever thought
one was better
than the
other"
Q:
So if this
merger doesn't
happen, DISH
is still out
there with a
treasure trove
of spectrum,
right? Legere:
And some
serious
commitments to
build it out
or lose it. Q:
You could call
them up and
say let's
talk. Legere:
I don't think
there's any
comparison.
Q:
That's not my
question. You
would pick up
the phone and
call DISH.
Legere: I'm
not sure
that's the
case... I
cannot provide
any
specificity
about what we
would do. Q:
Let's look at
your
deposition
again.
Q:
in 2014, you
acquire
spectrum from
Verizon,
right? A: I'll
take your word
for it.
Q: And
spectrum is
very market
specific,
right? You
might be
strong in
Chicago but
weak in
Denver... You
could lease
from DISH? A:
At any price,
could go
anywhere
Judge
Marrero calls
it a day,
adding that
plaintiffs
have used 15
hours and 10
minute.
Defendants 7
hours and 27
minutes. If
you violently
disagree, the
timekeepers
can confer.
More on
Patreon here.
Overnight
there was a
fight about a
Morgan Stanley
document -
more on
Patreon here.
On
December 11,
there were
witnesses Jay
Bluhm, the
Vice President
of Network
Planning at
Sprint,
followed by
Hakim
Boubazine, COO
pf Altice in
Long Island
City, Queens,
then
plaintiffs'
antitrust
expert Carl
Shapiro.
Here's some
of how it
went, more on
Patreon here.
On
the morning of
December 10
Deutsche
Telekom's
Timotheus
Höttges was
confronted
with
deposition
testimony in
which he
expressed
doubt that
DISH could be
a real
competitor.
Hottges
insisted he
had been
referring to
DISH as it was
in 2014. It is
not clear what
Judge Marrero
thought; his
questions to
Hottges were
about whether
under the deal
with DOJ the
merger would
still benefit
Deutsche
Telekom and
T-Mobile.
(Hottges'
answer was
yes). Here's more
of how it
went,
here.
More
on Patreon here.
On
December 9
Judge Marrero
began the
trial by
saying that
opening
statements are
unnecessary,
asking, Are
they for me?
For the
witnesses?
Then the first
witness was
not here and
they took a
break. Inner
City Press
checked out
"overflow"
room 15B -
corporate
lawyers
everywhere.
The
plaintiffs /
States play a
mobile plan
advertisement,
very loud. Now
presents press
release "after
Project
Samurai was
gone." Q: So
Project
Samurai put
significant
pressure on
T-Mobile? A:
Well, we
retired the
plan. Q: But
only after
extending
it...
Q:
So T-Mobile
responded to
Project
Samurai with
its Metro
pre-paid,
right?
A:
In 2015? I'm
not sure. They
cannot know
what T-Mobile
is really
thinking. They
assume. Q: Let
me show you
this
Competitive
Alert...
Outside
overflow
courtroom 15B,
full of a
corporate
lawyers, they
put out a
lunch spread
not seen
before in SDNY
hallways.
Money talks.
But what about
the merger?
The docket
does not say
much. Other
than an order
allowing the
lawyers to
bring into
court their
laptops, the
last letter
was filed
entirely under
seal,
here.
Inner City
Press will
have more on
this, and on
the CEO
witnesses when
they appear.
More on
Patreon here.
Back
on December a
final
pre-trial
conference was
held.
Inner
City Press was
there, and
will cover the
trial. On
December 6 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
alloted. 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
will cover 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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