D.Telekom eying possible Sprint buy

At what point do the feds stopping approving these mergers and eliminating competition? The FCC is already on the hot seat from Congress for failing to protect wireless competition by allowing AT&T & VZW to acquire the vast majority of Lower/Upper 700 MHz licenses.

 

Well money does talk!!

 

Yes unfortunately it usually does come down to money and that's not always good for consumers.

 

the 700mhz may not have been apart of the business model for all wireless companys.

i.e. TMOB who has more than enough license for the amount of consumers that they have and probably will ever have. after they walked away with almost every AWS license they could. it would have been pointless for them to waste millions or billions on 700mhz licenses when they have licenses to build out on.

so though att and vzw got a majority of the licenses for 700mhz, again it was an open auction and anyone could have participated.

seems fair to me.

 

Tmobile got abunch of 1700/2100 which is well used in europe but is an oddball in the US. Tmobile with out its 2100 is tight for spectrum in alot of areas, in these areas Tmobile only has 10 MHZ of 1900 which isnt alot when you start getting into well devoloped areas.

As far as divestments go Tmobile could easily get up to 50 MHZ of Spectrum and not lose it.

The problems with the Sprint Nextel merger was obviously Technology differences but you have to think of the huge undertaking of getting the Public safety departments moved over to Nextel current spectrum and moving Nextel over to the new spectrum which is not easy.

Also the Sprint Affliates are also holding up forward progression often not being up to Sprint standards, poor coverage, data speeds etc.

I say Sprint will want Hesse to give it a go for a year or so to show positive returns before the say screw it and have a Carrier yard sale.

 

T-Mobile would be in a great position if Europe used the same freqs, but they're 1900/2100, so there is some overlap, but not useful in making world phones.

AT&T and VZW both have 1700 MHz licenses and haven't done much with them--T-Mobile is just an "oddball" because they're using theirs quickly.

Ironically, in my area T-Mobile has 40 MHz, but Sprint only has 10 MHz...

 

in GA and most of the southeast, TMOB aquired Voicestream and Powertel, so that is how they have so much 1900 here. you are correct though about all of this. im right with ya.

 

It's even making it around to some of the NASCAR sites on the web, just saw this on ESPN's jayski site: Jayski's® Silly Season Site - Sprint Cup News Page

Analysts say T-Mobile may acquire Sprint; T-Mobile Series? UPDATE: Sprint Nextel may be a takeover target, according to one of the nation’s largest investment banking firms. Deutsche Telekom, owner of T-Mobile and the world’s sixth largest phone company, may consider acquiring Overland Park-based Sprint to block a price war in the mobile phone industry, analysts for Merrill Lynch said today. The Wall Street firm said Sprint’s operational problems and shaky position in the U.S. wireless industry may force the company to cut prices even further to attract customers. T-Mobile generally is considered to be the low-cost alternative among the top five U.S. mobile phone companies. Last week, Sprint introduced an unlimited voice and data wireless plan that undercut other U.S. companies. Lynch, which advises its clients to sell Sprint shares, said it is not aware of any acquisition discussions.(Kansas City Star)(3-7-2008)
UPDATE: Deutsche Telekom AG is considering a bid for Sprint Nextel Corp., according to a media report Monday. Bonn-based Deutsche Telekom did not immediately comment on the report in The Wall Street Journal. Were it to make such a deal, it would catapult its T-Mobile wireless unit to the top spot in the U.S. market. In its report, The Wall Street Journal said deliberations were at "a preliminary stage and management may very well turn away," according to the people it quoted. Any bid, the paper's sources said, "could still be weeks, or even months away."(Yahoo Biz/AP)(5-5-2008) Comment here


I really hope this doesn't happen as the last thing we need is more consolidation in the wireless industry. Once you only have 3 dominant providers at 50-60 million customers each, the competition is basically over in the industry and the top 3 will be able to dictate prices to the consumer and excessive roaming rates to smaller competitors.

 

i have to tell ya, even if it did happen. boy what a PITA. they will have to maintain them seperately, more like an aquisition than a merger. then when LTE is available, they can merge. makes sense

 

T-Mobile Considers Sprint Acquisition

Report: T-Mobile Considers Sprint Acquisition

Such a deal would leapfrog rivals AT&T and Verizon Wireless to create the largest cell phone service provider in the U.S. ​

By W. David Gardner
InformationWeek
May 5, 2008 12:47 PM


Add Deutsche Telekom's T-Mobile to the list of companies vying to reverse Sprint Nextel (NYSE: S)'s decline. According to reports from Germany's Der Spiegel magazine, T-Mobile is considering acquiring Sprint.
The report gained some credence when Sprint didn't make a scheduled announcement Friday of its new Advanced Wireless Services-based network.


An acquisition by Deutsche Telekom, helped by the strength of the euro over the U.S. dollar, would leapfrog AT&T (NYSE: T) and Verizon (NYSE: VZ) Wireless and create the largest cell phone service provider in the United States. The challenge for T-Mobile would be to sort out the various wireless standards utilized by the different providers. T-Mobile uses the GSM standard while Sprint uses CDMA and Nextel iDEN.


Sprint has been struggling to integrate Nextel into its network and recently wrote nearly $30 billion off of its $35 billion acquisition price of Nextel.

Meanwhile, Sprint has been talking with its on-again, off-again partner Clearwire about deploying WiMax; also reported to be talking about joining the WiMax combine at different times are Comcast, Intel, and Time Warner.

The Wall Street Journal said Deutsche Telekom has become more interested in Sprint as the dollar weakens against the euro and as Sprint's stock has plunged. The acquisition speculation, however, drove Sprint up in early trading Monday morning.


Source:

 

Re: T-Mobile Considers Sprint Acquisition

I would argue Sprint and T-Mobile target a similar base...those persons interested in data and messaging, and therefore the two merged would present a stornger front against VZW and ATT.

Most people only have about 3-4 choices in cable/satellite in their specific area, so I fail to see how only having 3 major wireless providers could be considered a "lack of competition."

I think the bigger hurdle, especially in these times of heightened xenophobia, is whether or not the government would approve a deal in which a German company became the largest provider in the USA? I can't see that happening.

But...on the off chance such a merger were to happen, I'd be fine with it. If I ever left Sprint for any reason, T-Mobile would probably be my top choice as a replacement.

 

It's time for the latest installment of...

"As The World Of Mobility Turns"

Will Sprint Dump Nextel?

Will T-Mobile Propose to Sprint?

Will Qwest be happy with Verizon?

T-Mobile's 3G, is it real or imaginary?

Will the 3G iPhone ever reveal itself?

Will there ever be a Blackberry with 3G?

What ARE these upgrades that Admin Joe is doing? And how much cooler will W.A. be???

So much drama...What WILL happen? Stay tuned.....

 

Re: T-Mobile Considers Sprint Acquisition

Most markets are covered by one cable provider, then you've got Dish and DirecTV and AT&T U-Verse or Verizon FiOS.

But I don't think the government would approve the buyout. Like you said, that would make a foriegn company the no.1 provider in the US. Sprint also owns SprintLink, a T1 provider and part of the internet backbone. One of the reasons why the SK Telecom buying Sprint rumors were shot down were because then a overseas company would own a chunk of the US's internet backbone, and the government uses SprintLink for some agencies.

 

Re: T-Mobile Considers Sprint Acquisition

Hell bring it on change is good.

 

Google is throwing a fit because Verizon paid more than the $4.6 billion to enable the Open Access rule on the C block but is using loopholes to close the network to their customers.

But like others said, money speaks for itself.

 

Besides the fact that DT could buy Sprint cheap, especially with the weak dollar vs the Euro, I don't see them making this work any more than Sprint/Nextel.

I don't think people understand how painstaking it is to converge the two totally different technologies. Sprint couldn't grapple that same issue with jurassic iDen. DT will not be able to gracefully switch CDMA2000 customers over to GSM or LTE.

We are seeing it now with Sprint NExtel, customers are confused by the two brands being sold under the same roof...they don't get it.

I think T-Mobile is best served building out their AWS licenses and buying smaller GSM providers.

I do beleive Alltel could make a run at buying out Sprint and be "somewhat" successful at merging. They have the same technology for starters. That said, it still is no easy task.

 

I think DT may consider buying Sprint now, with the intention of selling off Nextel itself, if that's what it takes to keep PCS G. DT handles a few other wireless providers in different countries, so I'm sure they could handle some complicated stuff.

You might even see Sprint really split up. The internet backbone portion could be spun off or sold to the company that Sprint created for its landline division. Clearwire would be a separate entity. Nextel could be sold off, most likely to some PS related company. Sprint proper could be split to sell a portion to Alltel and then DT merges the rest into T-Mobile.

If T-Mobile only netted 30 million customers, regulators would be okay with it.

Spectrum wise, T-Mobile would be much better off with some chunks of Sprint's PCS bands. The PCS G block alone would allow T-Mobile to roll out 3G on 1900 relieving them of the need to push for 1700 AWS handsets. They could keep the 1700 AWS system in place in the high usage markets they're already targetting. They would keep much of 1900 spectrum where they need it, and pass on other spectrum to Alltel where they can get their money's worth.

If ALL the major carriers targeted LTE for 700 AND 1700, then T-Mobile wouldn't be in a bind to get handsets.

I know, I'm dreaming...

 

Re: T-Mobile Considers Sprint Acquisition

What's wrong with a foreign company being the biggest network in America?

 

Re: T-Mobile Considers Sprint Acquisition

Nothing (as far as I am concerned), but I just don't know how the government would feel about the ownership of a communicaitons network by a foreign entity.

 

Re: T-Mobile Considers Sprint Acquisition

Because then that means that all the revenue the company makes goes to another country's GDP.
Plus it's a security issue too.

 

Re: T-Mobile Considers Sprint Acquisition

It's always better to keep the revenue here rather than to let some other country get it.

 

Re: T-Mobile Considers Sprint Acquisition

Well stock holders can be from all around the globe for these companies so I think the money finds it way out some way or another.

 

Re: T-Mobile Considers Sprint Acquisition

With Verizon Wireless already sending 45% of its profits to a foreign company, I think having all of T-Mobile's plus Sprint, plus Nextel's profits sent to another foreign carrier would be something the feds may not be happy with. Remember they're the 3rd, 4th, and 5th largest networks in the US.

 

also keep in mind that if this went through.....what would the quality of the new Tmintextel be like??

i mean they would have to go through reassess how many customers they have in an area......change towers accordingly....shut ones off build new ones.........they would have to take down CDMA iDEN and Synergy towers and replace them with GSM or even better ust replace them with UMTS and screw GSM.........and then T-Mobile would get a backbone.....

the plan that Sprint mentioned about bringing all its technologies together on one platform.....yeah well now we need to add T-Mobile...........quite a project but when its done that will not only be the biggest wireless carrier but it will also be one of the biggest internet providers as well

 

I don't know how I feel about this.

On the one hand, I would like to get the larger coverage area such a merger would create (though I don't have too many coverage issues with T-Mobile as it is.)

On the other hand, the Sprint/NEXTEL merger didn't do good things for either company so I can't see how a T-Mobile/Sprint/NEXTEL merger will be good unless DT has a really, really good plan on how to purchase Sprint/NEXTEL without making things worse.

If I had the money, I'd purchase Sprint/NEXTEL. Hooligan Mobile... mu-hu-ha-ha!

 

Doesn't Sprint and T-Mobile pretty much cover the exact same areas though? I know there are a few places here and there that Sprint might have more coverage but it won't be any big difference. But I guess if they combined some of the cell sites together there would be improved in market coverage.

 

Well, yes, in some places but Sprint is built out more than T-Mobile, as far as I know.

 

Can you imagine all of the duplicate/redundant cell sites they would have to deal with if this merger happens? Sprint alone already has MANY redundant sites from Nextel that are still in operation so it's going to be crazy once you factor in the combined redundant cell sites from Sprint, Nextel and T-Mobile.

 

I don't see how redundant they would be condsidering we are talking about 3 different network technologies here. I only see it as redundant if they were all using the same technology.

-Jay

 

They key is all about having an execution plan for the networks, and following through on it. SN made the decision to operate both iDEN and CDMA, and that has been their downfall, IMO. CDMA customers have benefited, but iDEN customers were screwed.

IF it were to happen, I would prefer that Nexel not be a part of the merger, but if it all were to occur, there would have to be, from the merger announcement date, an announced plan for integration, and a target date to accomplish it.