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Discussion in 'Wireless News' started by guy2, Mar 6, 2008.
MyFox Kansas City | Report: T-Mobile May Look at Buying Sprint
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i would like to see that. But it will never happen. I dont think.
You would think that the Sprint / Nextel merger would have taught telecom a lesson? That merger hasn't worked, mainly due to the differences in technologies on each network. How does T-Mobile think GSM and CDMA are going to co-mingle so fluently. A merger between to companies with similar networks is painful enough.
Alltel did it.
the main reason i think it wouldnt work is their footprints are so similar, and T-mobile would hurt their reputation in exchange for gross adds...sounds like the Sprint Plague would continue to haunt IMO
Sprint is already in a lot of trouble. It would probably be best if they split the CDMA/iDEN customers up and split the company. TMO would have a devil of a time juggling GSM, UMTS, CDMA, and iDEN. 1 company, 4 networks. I don't think this is gonna fly. There is just too much going on. The companies with the money to deal with a merger of this type (ATT & Verizon) seem to be staying out of this. If it does happen (which I think it won't) it would be like tying a line from the Titanic to a lifeboat. The Titanic will pull the lifeboat down with it. I don't think TMO is that starved for customers that it wants to go through that kind of trouble.
Another silly rumor that will never happen. What happened to the Korean company that they were saying would acquire Sprint? Or Google, or the cable comapny, or?? etc. Never happened and this is even a much more far fetched scenario.
I don't think the different technologies have been the primary reason the merger has been such a problem. I think it is part of the problem, but incompetent management at Sprint and the fact Nextel's iDen network was headed for a huge fall regardless of whether anyone bought them or not are the two biggest factors in the merger headache.
If Sprint had forced Nextel users to adopt the hybrid phones by offering them to all existing customers at deep discounts or offering them to leave to another carrier (either way getting voice customers off iDen and reserviing it fo rdirect connect), I think they would have been fine with the two different networks operating at once. Giving out free/cheap phones wouldn't have cost $30 billion dollars in losses, that is for sure.
Of course, Sprint took so long getting the hybrid phones on the market, it was probably too late at that point anyway.
The US dollar is very, very low right now, so it would be a good time for a foreign company to buy it.
If T-Mobile did buy Sprint, I could only seeing them doing it for 2 reasons: 1) To eliminate a competitor, and 2) to gut the whole network and replace it with UMTS/HSPA and LTE. It would be a tough transormation, but it could throw them into a solid 3rd place in a few years.
This rumor is so bad it's funny.
It would be a repeat of Sprint buying Nextel, and be even worse.
It's not a rumor, it's the basis of a research report by a Merrill Lynch analyst. I read it today in its entirety.
RadioRaiders has a nice summary. The positives for DT is the elimination of a competitor in their primary growth market, the ability to continue to grow their company (lots of areas of DT are declining in their home market, revenue-wise), and getting from 4 to 3 national carriers in the US will improve the profitability of all of them. That, plus the cost of this merger would be only 1/3 of the cost of their acquisition of VoiceStream and Powertel - which created TM USA. (that's cost on a per-subscriber basis, not the actual total cost). Plus, the Euro is very strong against the dollar now, and would be the time to make the move for DT. The US Government won't allow AT&T or VZ to do it, of course. This would put the final 3 companies on comparable footing. Today, on a total sub-basis, TM/Sprint would be #1 according to the report, although it is estimated that their costs initially would be $10B per year higher than the other two, before integration.
A cable company buying Sprint today (or even before) does nothing to reduce the competitive pressures, so there's really no value. Plus, with today's credit markets it would be hard for a cable company to do it (US-based....DT is at an advantage here by paying with Euros.)
The basis of the analysts comments are that there eventually would be just one network - the T-Mobile newtork eventually on LTE a couple years down the road - with a forced migration of all SN customers. Another option presented would be to spin-off Nextel (which Sprint isn't really investing in anyway) and combine the Sprint CDMA and TM GSM networks.
Of course, there are significant short-term drawbacks. It would be a colossal challenge to integrate those networks. Running them concurrently is actually the relatively easy part - just change the logo on the employee badges and move on. Integrating the two networks, from the base stations to the customer care to billing to everything else would be monumental. I have no idea if it would work long term, but I also think that Sprint's running parallel networks will be their downfall. Anthro also brings up a point that iDen was basically dead-end technologically anyway - Sprint bought them just for the cash their customers generated, and to gain market position. (And market position would be one big reason DT would be interested in Sprint).
1 company, 4 networks would be difficult. But a clear path from the start to 1 company, 2 networks (GSM, UMTS or LTE down the road) would cause pain for 2 or 3 years, but even before the pain stopped the benefits would begin to appear. I don't know I would want to be the transition or integration manager though
Is this an early April fools joke?
If anything, Alltel buying Sprint, would be a more realistic idea. :biggrin:
That would be nice, but I'll believe it when I see it:browani:
Alltel and Sprint would have been the better merger in the first place.
T-Mobile couldn't possibly be in a position to buyout Sprint. Sprint also has to be the least attractive company from an operational standpoint looking into the short-term. There are many hurdles, and with the weakness of the dollar it just doesn't seem like something anyone should just jump into at the moment.
I'd rather see that situation although I still think neither is going to happen. The Feds would be inclined to approve either Sprint/T-Mobile or Sprint/Alltel easily. But any combo of Sprint/Verizon or Sprint/AT&T would never fly.
I don't think that was really Sprint's fault. Isn't that all dependent on Motorola and the ability to create such an odd device that had never been made before? I know it sometimes takes years to develop and put on the market this sort of new technology. It would have been nice to have been done faster but I think Sprint did everything they could to get those phones out.
neither vzw nor ATT would want that headache.
Alltel/Sprint wouldnt work bc Alltel doesnt have the $$ from what i recall reading.
obv TMOB/Duetch has the € to really pull this off.
but i agree with everyone...the undertaking would be massive...i would think that most likely they would take sprint...turn them around management wise..keep their network how it is...offer both services until they could change over sprint to LTE in time for when they plan to do TMOB...
NOW...the interesting part would be to see how they plan to build out a nationally competitive network with 2 companys that both have the same basic native footprint and only 1900mhz to use....
I think they would have been wise to pay Motorola to develop them prior to buying Nextel...it would have saved them a lot of money down the road.
Either network is already competitive nationally and already built out. Combine them both and think of how many cell sites they would have. They could potentially have much better coverage in their existing markets than any carrier assuming they would combine them all into one system. No other carrier would come close to the cell site numbers and density they would have.
So how would the FCC react, along with the DHS towards a German Company buying more US Cell companies????
Yeah, Alltel did it with a couple of small GSM carriers. They were not a national GSM carrier looking at possibly buying a larger national CDMA carrier.
I would think the cost of retrofitting the GSM networks to CDMA (or 3G) would be prohibitive. Not to mention the debt DT would have to assume if they purchased Sprint.
The only company who could reasonably purchase Sprint would be Alltel since they're backed by private equity firms. I think Alltel would only try to purchase Sprint if they totally lost out on the 700MHz spectrum auctions.
i tend to disagree...most of the time their coverage is almost the same. actually TMOB's native coverage is probably better than sprints. Often they are co-located on the same towers in most areas, but im sure there may be a few places that benefit.
the facts are though that either way you have 2 companys, 2 technologys...even if 4 years from now when they are all LTE or whatever, your still looking at a company with no rural coverage...which will always be an X-factor in the US.
Different markets have different scenarios for coverage, build-out and whether or not there's a lot of co-location. Here in So Cal T-Mobile and Sprint are very seldom co-located together. Also T-Mobile has a lot of rural coverage here in CA and so does Sprint and Nextel.
Why does it matter how much rural coverage they have? Isn't that what roaming agreements are for? There's a reason why Sprint and T-Mobile have avoided rural build-outs. Because there's just not enough money to be made in them.
The FCC would certainly be inclined to approve this particular deal because it wouldn't create a monopoly like a Sprint/AT&T or Sprint/Verizon deal would.
I still think mergers and acquistions aren't good for the consumer. We can expect to see higher prices and a less competitive market if a T-Mobile/Sprint deal happens.
If TM and Sprint were combined, and went with a technology compatible only with AT&T, it is possible AT&T might make their roaming agreements prohibitively expensive so as to back TM into a corner. I doubt it would happen, but i suppose it is possible.
I don't think Homeland Security would care if DT owned Sprint/TM. Germany is considered an ally, and if they viewed DT as a problem wouldn't they seize TM or otherwise make life difficult for DT?
The same way they react to Verizon Wireless partner,
Next thing you know we will be importing labour to construct towers and outsourcing call centers(hell sprint already does ive heard haha) and telesales to save $....stores will become a thing of the past as the overhead will be to great...
Get where im going?
NOW the implications of an All you can eat will really hit home, when people start losing their jobs at the demand of the consumer for more and for cheaper...
from the looks of it..........spinning off iDEN would be abad idea because that just means they would head down the drain faster.......Sprint is releasing QChat this year withing the first 2 quarters......im giving them slack on the time......but at any rate as soon as they offer QChat they give iDEN customers a year.............that will get rid of iDEN quickly and possibly a bit more coarsely then planned originally but you cant please everyone.....
then it's just CDMA...........then T-Mobile should work from there............working with 3 networks and one that isnt even online yet is ust dumb....
and honestly this way we can get Sprint away from WiMax and moving towards LTE...........it just is amazing cuz they make all these decisions to be gung ho for UMTS/HSDPA and then LTE rolls along and thats where everyones going and they dont even have UMTS online yet.........T-Mobile is really behind
A Sprint/T-Mobile merger would be a disaster. T-Mobile stores would be filled with incompatible phones: GSM, IDEN, CDMA, and CDMA/IDEN! What a mess! Then sooner than later T-Mobile customers would begin asking why the T-Mobile customer next to him has signal and he doesn't (because one uses one network and the other one uses another). Just think of the mess. I don't even want to think about it.
One would think the industry has learned the lesson of not trying such incompatible mergers.