I noticed on Marketwatch.com that Deutsche Telekom is assessing a bid for Sprint. Says the bid could come in the next few weeks.
Links to the reports: Deutsche Telekom may bid for Sprint: Telegraph - MarketWatch Deutsche Telekom Mulling Possible Sprint Bid, Telegraph Reports - Bloomberg.com
Yeah, not going to happen. What would T-Mobile even do with Sprint's CDMA network? They are already in the process of (slowly) building out their 3G GSM network. It is not even like Sprint is building a 4G network that T-Mobile could just take over, that is clearwires network. This makes no sense.
I believe it could happen. Look at it this way... Sprint-Nextel has a national 1900mhz liscense (through Sprint PCS) and a national 800mhz liscense (through Nextel)... they also have a WiMax venture and two very profitable/lucrative in-house MVNOs. Why wouldn't T-Mobile want to purchase them?!? Yes... while they aren't GSM they do have two VERY coveted national liscences and two very coveted MVNOs. Putting the postpaid base (and differences in technology) aside... the MVNOs and liscenses are enough to at least CONSIDER purchasing. That is just my opinion though.
This same scenario has come up before and never materialized. I don't see this happening this time either.
T-Mobile already has spectrum everywhere they want it I believe. Additionally, Sprints 800 spectrum is in the SMR band, and is pretty useless for any new buildout. There are far too many conflicts with emergency spectrum and whatnot to nationally build out on that 800.
It would be interesting indeed & who know's maybe they would keep most of it as CDMA till they upgrade everything to LTE and do all at once? It doesn't make sense as others have said but who know's what's in their minds if it were to happen.
It'd be an interesting one alright, but I'm doubtful that the government would allow it, especially in today's economy. Sprint's government contract would also be at stake being that most of those have foreign ownership clauses.
Why when they can let/manipulate [[self-censored for political rant]]. PM me if you want to talk outside of the general forums.
Aren't there laws forbidding a foreign company to own a certain amount of a domestic telecom company? Sprint Nextel has a bunch of government contracts, I'm sure they would all be canceled if this was able to go through.
Despite how complex a merger like this would be (not to mention the regulatory drama that would likely ensue), I can't help but wonder what the possibilities would be? DT would have its hands full with a "merged" carrier using 3 different network technologies (GSM, CDMA, iDEN). How would this affect present MVNO's on Sprint's network? Or even Sprint's recent purchase of Virgin Mobile US? What about Clearwire and further WiMax deployment? The foreign ownership rule limitation would be another thing. After the blood shed from the Sprint/Nextel merger (of not all was bad), could this just be another go-round of watching merged carriers implode? If even such a merger were approved, this would place the new T-Sprint/Nextel near VZ and AT&T, with roughly 82 million customers. So we'd be down to 3 gigantic carriers and a bunch of miniscule ones (in comparison). There are a million other possibilities of what could come of this. What I do hope is, whatever happens, it doesn't destroy/severly damage the carriers involved (to AT&T or Verizon's benefit in particular). Only time will tell.
...don't forget Sprint outsourced network operations to Ericsson, a Swedish company, earlier this year, which was obviously approved by the US gov't. Another interesting twist: T-Mobile Mulling Takeover of Sprint Nextel ...then the whole iDen, CDMA, WiMAX mess Sprint/Nextel/Clearwire has. T-Mobile has been very aggressive with LTE, so there's a technology clash there. on the other hand the USD$ is very weak, so Sprint probably looks like a bargain to Germans right about now. And to kill a competitor and get their RF spectrum is always a plus, altho Sprint is mainly 1900Mhz and T-Mob could really use some 800Mhz... ...so to sum up: who the hell knows
Tmobile probably just wants the "pops" and Spectrum as Tmobile has limited 1900 in some areas the Sprint 1900 would benefit. If Tmobile gained more 1900 they wouldn't have to use the odd ball AWS spectrum and would have more handset availability. Heres the cons. Sprint is still in the middle of the SMR reband involving hundreds of police and fire departments. Sprint is sitll in the middle of the reband of the Broadcast Data link band which just got approved to postpone. 5 different networks UMTS, GSM, CDMA, IDEN, and Wimax which is owned by Clearwire. Operations owned by Ericsson. IPCS and any other affiliates out there. Pros 1900 Spectrum SMR Spectrum will be valuable after reband which puts it directly next to existing cellular A and B band. Iden is based on TDMA and GSM standards and uses SIM cards. After frequency rebanding it may be possible to get IDEN to talk to both the GSM and UMTS networks. It will take billions and billions of dollars to work out this SNAFU. MY 2 cents.
I heard on the radio this morning that Sprint's stock jumped this morning... Sprint Up 13% On Prospects Of Potential Takeover >S - WSJ.com
Here is a link to the story on Bloomberg: Sprint Jumps on Report Deutsche Telekom May Make Bid (Update2) - Bloomberg.com
Sprint Nextel Corporation And Deutsche Telekom AG Not In Merger Talks-DJ 9:55am EDT Dow Jones reported that Sprint Nextel Corporation is not in talks with Deutsche Telekom AG over a deal for the German telecommunications giant to buy Sprint Nextel Corporation, CNBC's David Faber reported, citing a person close to Sprint Nextel Corporation. A U.K. newspaper, the Sunday Telegraph, said Deutsche Telekom AG is prepared to make a bid for Sprint Nextel Corporation. Sprint Nextel Corporation (S.N) Key Developments | Stocks | Reuters.com
Here is the media back stepping on an article, the original "rumor" was that DT hired a company to look into if it was worth doing, now they are saying the papers said they "Made a bid for SprintNextel" Too many rumor mills out there & the stories are getting all mixed up. Now I don't know what to think or believe. Especially when this article was posted hours after your news report & they are owned by the same company: http://www.marketwatch.com/story/ge...to-be-going-for-sprint-2009-09-14?siteid=nbsh Guess when the dust settles with the media, we will know what's what. LOL
I just read on CNBC.com that perhaps DT is after Clearwire, Faber Report, September 14th. Says Clearwire has tons of spectrum. Report says Clearwire makes tons of sense. This is more than the speculation of the last 18 months. The article also says Sprint would be put out of it's misery in a buyout. Those finance guys get it. I don't think there was ever any talk of a merger, just a buyout. Think it said Sprint owns 51% of Clearwire.
Now Clearwire does make more sense then Sprint & could be why Sprint was mentioned, I will have to read the article.
T-Mobile is probably thinking about the spectrum and assets Sprint has more than anything else. Soon they can convert all that mess to LTE and kill CDMA and IDEN networks. Not to mention the sizable assets Sprint has such as long distance and high speed lines, would benefit T-mobile tremendously and will secure their future. Plus, a WiMax network to go along. T-Mobile's primary concern now is their lack of resources for a true high speed network for the future. They are lacking spectrum in many markets and lack the backbone capacity that Sprint, AT&T and Verizon have.
I agree with your analysis, and LTE is a potential merge point. But oh, the headaches along the way. If they took the approach to operate separately until LTE that might be OK, but that is 2012 or later I would think.
