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  • WSJ: Sprint Planning to Place a Bid on T-Mobile for a 2014 Takeover


    Sprint is said to be looking into the purchase of rival provider, T-Mobile USA, which if successful, would leave the nation dominated by only three major telecoms. According to people who seem to be familiar with the matter, the nationís third-largest wireless carrier is looking to put in a bid for T-Mobile, which is currently the fourth largest carrier in the US.

    The sources continue to claim that Sprint is in the early stages of examining regulatory hurdles to the purported buy as it looks toward launching a bid in the first half of 2014. Depending on the stake Sprint attempts to purchase, the deal could run upwards of $20 billion. Looking at revenue for the nine months ending in September, a Sprint/T-Mobile consolidation could create a strong competitor to the now-dominant Verizon and AT&T. As seen above, combined revenues for the third- and fourth- telecoms amounted to $35.8 billion over the nine-month period, compared to AT&Tís roughly $45 billion and more than $51 billion for Verizon.

    The success of Sprintís rumored takeover seems to already be on shaky ground, however as AT&T is still licking its wounds from a failed merger attempt just two years ago. Interestingly, at the same time, Sprint disagreed with the two companiesí joining, to the point where it filed a formal petition with the FCC. AT&Tís proposal was set at $39 billion.
    Behind the T-Mobile takeover is supposedly Masayoshi Son, chief executive of Japanís SoftBank, which in July officially closed out a deal for controlling interest in Sprint. Son is known to be an aggressive businessman and has expanded his communication technology empire through a series of acquisitions and takeovers.

    Furthermore, The Wall Street Journal is reporting that Deutsche Telekom, which is currently majority owners of T-Mobile USA, is looking for an exit from the US market. Overall, a Sprint T-Mobile fusion would potentially bring together 53 million post-paid subscribers, compared to AT&Tís 72 million and Verizonís 95 million.

    Weíll have to see what comes of the whole ordeal by being patient.

    Source: The Wall Street Journal
    This article was originally published in forum thread: WSJ: Sprint Planning to Place a Bid on T-Mobile for a 2014 Takeover started by Akshay Masand View original post
    Comments 19 Comments
    1. GuiltyGearIsaac's Avatar
      GuiltyGearIsaac -
      How come y'all never brought up SPRINT SPARK? Like that would have caught everyone's attention a few months ago.
    1. zeroskater61's Avatar
      zeroskater61 -
      Wait but didnt the U.S. department of justice prevent AT&T from buying t-moble in order to preserve a vibrant and competitive market place?? And wasn't sprint / Nextel also the ones making a deal about this and yet here they are trying to buy t-mobile out now?
    1. fleurya's Avatar
      fleurya -
      Ha! Sprint trying to pick up T-Mo after officially petitioning against AT&T's attempt on grounds of monopolizing the business? That'll be a tough sell!

      I really hope it doesn't happen. For one, it'll only mean prices will go up with less competition. Also, I am planning to leave Verizon and all contract plans and get myself and my wife on T-Mo's shared prepaid plan for $90 a month. If sprint picks up T-Mo, I'm sure that plan will die a quick death.
    1. Hillefied's Avatar
      Hillefied -
      Quote Originally Posted by zeroskater61 View Post
      Wait but didnt the U.S. department of justice prevent AT&T from buying t-moble in order to preserve a vibrant and competitive market place?? And wasn't sprint / Nextel also the ones making a deal about this and yet here they are trying to buy t-mobile out now?
      Firstly, the DOJ stopped the AT&T merger to prevent market saturation of AT&T's mobile broadband technology. Verizon and Sprint have a better future in mobile data broadband technology than AT&T. Supposedly, the DOJ was ensuring the future of mobile telecommunications, which I think is way too much government meddling.

      Secondly, Nextel doesn't exist, even under Sprint. Sorry, just needed to point that out.

      Thirdly, Sprint could very well fail with this merger simply because T-Mobile's technology just simpy isn't compatible. T-Mobile also leases towers and telecommunication frequencies instead of owning. Sprint would have to spend millions to either convert their towers or convert their subscribers or worse, both.
    1. GuiltyGearIsaac's Avatar
      GuiltyGearIsaac -
      Quote Originally Posted by fleurya View Post
      Ha! Sprint trying to pick up T-Mo after officially petitioning against AT&T's attempt on grounds of monopolizing the business? That'll be a tough sell!

      I really hope it doesn't happen. For one, it'll only mean prices will go up with less competition. Also, I am planning to leave Verizon and all contract plans and get myself and my wife on T-Mo's shared prepaid plan for $90 a month. If sprint picks up T-Mo, I'm sure that plan will die a quick death.
      You do realize who the person in charge of SoftBank is right? If you don't, then go search him up. He doesn't increase prices he lowers it. Now sprint offers unlimited everything for $80 compare to $110 unless you need tethering then it's $110 with 6gb. Plus they just introduced a new technology called Spark which will get you a peak speed of 50mbps while the actual range of the tech will be from 150-200mbps. 2014 will be Sprints year of finally getting its things done while 2013 was to rebuild its network.
    1. GrandMstrBud's Avatar
      GrandMstrBud -
      Didn't the AT&T/TMO merger get shut down because it would have been a monopoly in the GSM market?
    1. ohthatguyagain's Avatar
      ohthatguyagain -
      These things are fairly subjective. For example - as far as land-based communications (TV, inet, phone) are concerned - you're either with AT&T or Comcast. Every other service in the US piggybacks (rents space) from these two providers. So... AT&T already has a monopoly there.

      If sprint were to attempt a purchase of Tmo, it would be seen as strongly anticompetitive by Verizon and possibly google - who is trying desperately to enter the cell service market.

      Lastly - sprints over-crowded and under-powered networks would not last long even with Tmo's boost. It'd be just like AT&T's acquisition and subsequent drowning of Cingular.
    1. femibrim's Avatar
      femibrim -
      i am just wondering if they do merge will t mobile keep GSM? or will they go the way of CDMA? i wanna leave at&t and go T-mo...... would like to keep the whole "simultaneous talk and surf" functionality....
    1. Albort's Avatar
      Albort -
      Quote Originally Posted by femibrim View Post
      i am just wondering if they do merge will t mobile keep GSM? or will they go the way of CDMA? i wanna leave at&t and go T-mo...... would like to keep the whole "simultaneous talk and surf" functionality....
      Well, LTE is considered a GSM frequency. I read something about CDMA being old useless tech and that only countries with more developed infrastructure has it. (aka, USA, Japan)...

      I think GSM will be the domination as 99.99% of all countries have GSM. There isnt a country with just CDMA...
    1. antman78987's Avatar
      antman78987 -
      Quote Originally Posted by GrandMstrBud View Post
      Didn't the AT&T/TMO merger get shut down because it would have been a monopoly in the GSM market?
      The AT&T/T-Mobile merger would have been a complete monopoly, period. AT&T wouldn't have just been dominating the GSM marketplace, they would have been dominating the entire country. IF Sprint were to acquire T-Mobile, it actually wouldn't be too bad of a thing, because it isn't too hard to implement many of T-Mobile's different technologies onto one of Sprint's Network Vision towers. Also, if Sprint/T-Mobile were to become a real thing, it would be great, considering their would be 3 big national carriers (With Sprint/T-Mobile still being in 3rd place, considering they will still have a smaller subscriber base), and competition would probably increase because AT&T and Verizon will see them as an actual contender to take the #1 spot based on customer satisfaction, monthly rates, plans, and network usability. This merger could very well be a pretty good thing for the U.S., in my opinion.
    1. Eonhpi's Avatar
      Eonhpi -
      Not going to happen
    1. GuiltyGearIsaac's Avatar
      GuiltyGearIsaac -
      Quote Originally Posted by Eonhpi View Post
      Not going to happen
      Thumbs down to you d00d
    1. Slim J's Avatar
      Slim J -
      Quote Originally Posted by Hillefied View Post
      Firstly, the DOJ stopped the AT&T merger to prevent market saturation of AT&T's mobile broadband technology. Verizon and Sprint have a better future in mobile data broadband technology than AT&T. Supposedly, the DOJ was ensuring the future of mobile telecommunications, which I think is way too much government meddling.

      Secondly, Nextel doesn't exist, even under Sprint. Sorry, just needed to point that out.

      Thirdly, Sprint could very well fail with this merger simply because T-Mobile's technology just simpy isn't compatible. T-Mobile also leases towers and telecommunication frequencies instead of owning. Sprint would have to spend millions to either convert their towers or convert their subscribers or worse, both.
      Good point. Sprint uses CDMA while T-Mo is GSM. The networks are incompatible so if the buyout goes through, Sprint would have to drop one of them

      You do realize who the person in charge of SoftBank is right? If you don't, then go search him up. He doesn't increase prices he lowers it. Now sprint offers unlimited everything for $80 compare to $110 unless you need tethering then it's $110 with 6gb. Plus they just introduced a new technology called Spark which will get you a peak speed of 50mbps while the actual range of the tech will be from 150-200mbps. 2014 will be Sprints year of finally getting its things done while 2013 was to rebuild its network.
      Also if you have a rooted Android, you can just use your mobile data to tether off from and just stick it to the man. I've been using rooted tethers for 3 years now and still can use them to this day
    1. bigboyz's Avatar
      bigboyz -
      Didn't know Tmo was up for $ale to the highest bidder...again. Is this going to be another year of speculation and waiting, only to end in a no go for either side? Guess we are going to find out.
    1. Greatbiguns's Avatar
      Greatbiguns -
      Sprint needs to get their own network up and running well before they worry about taking over T-mo... My Service is terrible and that's an understatement. Get with the program Sprint! Make current customers happy before you go searching for other customers.
    1. Owens65's Avatar
      Owens65 -
      A CDMA running company owning GSM? I would hope they wouldn't try and change anything about that. I'd rather have gsm than CDMA. I switched from sprint to T-mobile about a year ago and I thought I'd never see sprint again...or at least I hoped I wouldn't.
    1. GuiltyGearIsaac's Avatar
      GuiltyGearIsaac -
      I guess nobody pays attention to sprint since all they think is what they know before and not current. They just released a new tech for their network vision called Spark where you'll get speeds of 150-200mbps at a peak of 50mbps. They only have it in a few locations since it was just released on November 2013. Only triband phones can connect to the network or that have the band to get 2.5ghz which they currently only have a few phones on their network that are useable. So instead of saying 3G/4G/LTE it'll say "Spark". It'll be using the network on the 2.5ghz spectrum that was acquired from clearwire. 2013 is to rebuild the network and 2014 is the comeback year.
    1. Slim J's Avatar
      Slim J -
      Quote Originally Posted by Greatbiguns View Post
      Sprint needs to get their own network up and running well before they worry about taking over T-mo... My Service is terrible and that's an understatement. Get with the program Sprint! Make current customers happy before you go searching for other customers.
      I do agree there but when I do have service, it works great. I can get about 35-40 mbps down at my college and about 12 mbps at home but I get no service in some parts of Atlanta. Also if you head south of Macon (it's pretty much smacked right in the middle of Georgia), I constantly go from 2g, roaming or no signal at all throughout south Georgia. I guess it's good at least Sprint doesn't charge me for roaming
    1. dwizurd's Avatar
      dwizurd -
      I left Sprint at the end of my 2year contract. My experience with them was terrible. I couldn't make or receive phone calls from inside my home, and had to be at least 10 feet away from my house before signal became available, even though the coverage map suggested I was in an "excellent area" since joining T Mobile, I have excellent coverage and speeds, I will be following this story closely.