No AT&T T-MO merger?

Here is another link...not sure if the content is any different.

U.S. Moves to Block AT&T Merger with T-Mobile - NYTimes.com

 

Yes, and that is why this will still happen in some form or another. Even if AT&T has to find a 3rd party to take some of TM's other assets that it would be required to divest or enter into some sort of agreement that requires them to honor any TM calling plan in perpetuity. Whatever they need to do, I suspect they will do it so long as it costs them less than the $6 billion they'd owe TM.

 

You do realize that T-Mobile wants to get out of North America don't you? If it's not AT&T it will be someone else.

 

Well good, let it be someone else other than AT&T.

 

So maybe it'd be a better idea for T-Mobile to merge with MetroPCS and/or Cricket.
Maybe the combined company could stand more of a chance in the long term that way.

 

If you are thinking Sprint that won't happen and if by any remote chance it does, it will be the "kiss of death" for both.

However, the possibly of TM getting broken up in bits and pieces, dissolved/sold off and Att raising the prices to recoup their loss is much more real. I hope all my TM friends look at this realistically and stop celebrating this as some kind of victory.

I am sorry if that sounds harsh, but thats reality IMHO.

 

That's wtf I'm sayin. LOL

 

TMo needs to take the deal breakup cash and spectrum and build out with it. There is plenty of room in the marketplace for them if the playing field is kept level and the management stays on the ball. I hope the justice department sticks to their guns.

 

Well, technically speaking, Deutsche Telekom, the owner of T-Mobile USA, wants to get out. T-Mobile USA as a company I'm sure would like to continue. T-Mob USA has a pretty good rep for low prices and good customer service and built up a pretty good "brand image" in the US. Considering that, plus the cash and spectrum infusion they'd get if ATT take-over failed, I think they would be a pretty attractive company for someone else to takeover, eg. a group of private investors, another large consortium, etc. Or with the bags of cash ATT would give them, T-Mob could even go on the offensive and start buying some other companies (eg. MetroPCS, Cricket, etc.) and build themselves up to bypass Sprint.

Who knows, anything can happen. ATT still could wind up pulling off the take-over, maybe they just didn't grease the right hand yet

 

It's a positive thought. However, if you've been paying attention to what's happening with T-Mobile USA over the last while since the proposed acquisition has happened in March T-Mobile has continued to lose value and continued to hemorrhage money. That $6 billion would be gone in no time. Much as I hate to say it T-Mobile USA doesn't hold a lot of hope as a private entity. As far as "T-Mobile USA" that company would go away as soon as Deutsche Telekom AG sold it. They own the name T-Mobile whether it's T-Mobile USA, T-Mobile NL, T-Mobile DE, or T-Mobile Czech. And as far as Sprint buying T-Mobile USA that would bring up a similar problem that is currently with AT&T trying to buy them along with the fact that Sprint PCS buying wholly incompatible iDEN operator Nextel is still a PITA for Sprint many years after the acquisition. Interestingly enough Sprint was the original GSM operator in the USA in DC and sold the GSM infrastructure to VoiceStream which in 2002 became T-Mobile USA.

 

I agree, Sprint should NOT buy TMO, but they probably will consider it. Sprint has never incorporated their CDMA and iDEN networks, and I think they're still toying with WiMax. That's 3 networks. Buying TMO would mean adding TMO's GSM, WCDMA, and 4G networks. I think its a bit more than Sprint can digest.

 

I don't think Sprint would stand a chance anyway, so that is a moot point.

If Sprint bought TM, they'd be creating the duopoly they fought so hard against. Purchasing TM would give Sprint more customers, but it wouldn't do a think to help their financials. In fact, faced once again with the cost of integrating incompatible networks, I suspect it would end up costing Sprint a ton of money they just don't have given their plans for Network Vision (such a lame name) and their failed 4G "venture" with Clearwire.

If Sprint was thinking of purchasing anyone on the heels of the denial of this acquisition, Sprint should look to Metro or Leap.

 

I'd like to see T-Mobile USA become the lead company in an aggregation of the all the smaller, non-AT&T GSM operators working together. All of these smaller operators are sub-state or multi-county.

COtech

 

“The department filed its lawsuit because we believe the combination of AT&T and T-Mobile would result in tens of millions of consumers all across the United States facing higher prices, fewer choices...."

That is sooooo true! Each and every one of the T-Mobile customers will eventually be forced to give up their T-Mobile plans whenever they decide to get a new phone from the combined company. They'll be forced to pick from one of the more expensive AT&T plans which means they will have their choices reduced. Their only choice would be move to Sprint or one of the other smaller carriers if available in their area. Other than that, the other choice is Verizon which is even more expensive.

....and that's not to mention the imminent layoffs that a combination of companies causes. During these times, the last thing we need is more people unemployed.

 

(Reuters) - AT&T Inc is expected to soon present a proposed solution to U.S. antitrust regulators to salvage its planned $39 billion acquisition of smaller rival T-Mobile USA, according to people close to the matter.

Even as the No. 2 U.S. wireless service provider gears up for a lengthy court battle against the Justice Department, AT&T is prepared to make concessions to address concerns that the T-Mobile deal is anti-competitive and could cause wireless prices to rise.

This two-track plan will allow AT&T to try to find a settlement before the lawsuit reaches the court.

"AT&T is pretty determined that they can find a solution, and they are pretty confident," one of the sources said, requesting anonymity as the talks are private.

The U.S. government on Wednesday sued to block AT&T's purchase of T-Mobile USA, a deal that would vault the combined company above Verizon Wireless as the No. 1 player in the United States.If AT&T fails to defeat the lawsuit, it would have to pay T-Mobile parent Deutsche Telekom an estimated $6 billion in cash and other assets as part of the original deal.

Details of AT&T's proposed settlement were not available, but it is expected to include pledges to maintain T-Mobile's relatively cheap mobile subscription plans, and asset sales.

AT&T may have to sell up to 25 percent of T-Mobile's business, including airwaves and customers, two sources said, to address the government's concern that just three companies would control 90 percent of the U.S. wireless market if the merger goes through.

AT&T prepares two-track plan to save T-Mobile deal

 

I hope you realize how truly insignificant the rest of the GSM operators in the USA put together is. It's tiny. VoiceStream (which became T-Mobile USA) was the major player when it came to consolidating GSM carriers (Aerial, Omnipoint, Conestoga and others.) There really aren't that many independent GSM operators left once AT&T and VoiceStream/T-Mobile consolidated the rest. Even if this aggregate company got their chit together it would be like an annoying gnat buzzing around AT&Terizon. It wouldn't be of much significance. T-Mobile USA is history one way or the other. DT wants out of North America and they'll get out by one means or another.

It's interesting how things have turned. At one point T-Mobile USA was the star of DT's success. Now all they want to do is abandon it.

 

Ha, ha, yea right It's like a drunk swearing he's not going to drink anymore, so it's ok to leave the keys to the liquor cabinet with him. I could see ATT leaving T-Mob's prices in place for a year, then finding some excuse to migrate customers to ATT plans.

...and who are thy going to sell them to? Verizon? Yea, that would ease concerns about a duopoly

 

No I don't want that to happen either (and it wouldn't anyway). But the longer this thing gets held up and delayed the more customers Sprint can pick off from T-Mobile.

 

If the feds were to require that AT&T divest 25% of T-Mobile's customers to Sprint (for a fair market price) that might make this whole thing work out. That would make Sprint a much better No. 3 contender to face the big two. Sounds far fetched I know but Sprint should agree to that with AT&T and drop their opposition to the merger.

 

I would have to disagree with the idea that Sprint buying T-Mo would create a duopoly. I say that because AT&T by far is a lot larger then Sprint. If Sprint bought T-Mo, AT&T is still big enough on its own that it wouldn't be a distant third that Sprint would become if AT&T does buy T-Mo. VZW and AT&T are the two heavy hitters in wireless. You have Sprint that seems to be the odd-man out and T-Mo being in the same boat. If it weren't for the technology issues of a Sprint/T-Mo merger, I would say its a good pairing that would allow the newly merged company to take on the behemoths that are AT&T and VZW. You would effectively have a state of 3 big/Tier 1 wireless operators with scores of prepaid and regional players. I personally like that idea. I would say Sprint/T-Mo would be the value competitor against AT&T and VZW that constantly seem to playing a game of monkey see-monkey do.

 

Ultimately, I want this merger to fail. However, if any merger in wireless were to happen, then I want Sprint buying T-Mobile to help compete in against AT&T and VZW as talked about in my previous post.

I read somewhere that T-Mo is bleeding customers right now. I wonder which company they're fleeing to. LOL Could be Sprint or VZW.

 

Sounds like the duopoly everyone fears already exists, then?

Even if the technologies were the same, I don't think that a combined TM/Sprint could take on the Big Two any better than they can right now as separate entities. The coverage wouldn't improve at all, as both have very similar footprints. Both Sprint and TM are already cheaper than AT&T and VZW across most of their plans, and yet neither seems to be making much of dent in AT&T or in VZW's subscription numbers, so I don't think that would change. The fact is, Sprint and TM primarily compete with one another in the current market and VZW and AT&T compete with each other. If TM vanishes, Sprint becomes the only "discount" national carrier. I am not so certain that would be a bad thing for them.

FWIW, I have no problem with this merger if it happens, but I also don't care if it fails.

 

I guess in a way it does. Maybe you could say unofficially it does? LOL

I can definitely see where you're coming from with that. I would tend to agree that Sprint and T-Mo seem to be competing for the same group of people right now. They're coverage is very similar. I was just thinking that maybe with the combined customer base and the added income for the company might allow the combined entity to stay afloat and potentially offer a better competing service. Especially for those who stay urban and don't venture out a lot.

 

Why would delaying the merger allow Sprint more time to pick up more T-Mobile customers? I know many that say, if the AT&T/T-Mo merger happens, they will leave the company because they don't want to be on AT&T. In addition, even if AT&T ends up buying T-Mo, is not like those T-Mo customers are condemned to stay with AT&T. They can switch to whoever they want to as long as their contract is over. I can see many T-Mo customers that might refuse to get a new phone after a merger with AT&T so they can hang on longer to their cheap plan. And when they can no longer hang on to it I can see them switching to Sprint, Metro PCS if available, or Boost or whatever else that is not AT&T plans or Verizon.

For many people, the only reason why they are with T-Mobile is because they cannot afford Verizon or AT&T. So they will not stay with AT&T anyway if this merger happens.

 

Does anyone else think AT&T considers $6 billion an okay cost for eliminating a major competitor? $5 billion really, since a roaming deal probably wouldn't survive the inevitable dissolution of T-Mobile. It's like a Costco membership--they'll be able to buy large chunks for a discount once DT starts selling out.

 

I wonder if others like Comcast, or Cox would be interested in buying T-Mobile. That would give them the beloved quad-play bundles that Verizon and AT&T enjoy: TV, Internet, Telephone and Wireless.