Sprint primed for acquisitions

[dedub]

I think now that phones such as the iphone5 are out that support can both CDMA/HSPA & LTE, the possibility of a sprint/tmobile merger has dramatically tilted.

 

Even with non-compatible networks, having a universal phone that works (generally) equally well with both networks and the future of LTE is a great playing field leveler.

Edited September 26, 2012 by dedub

[Guest 503ducati]

http://seekingalpha....tion?source=msn

 

 

Additional disclosure: This article was written by an analyst at Saibus Research. Saibus Research has not received compensation directly or indirectly for expressing the recommendation in this article. We have no business relationship with any company whose stock is mentioned in this article. Under no circumstances must this report be considered an offer to buy, sell, subscribe for or trade securities or other instruments.

[Ascertion]

Sprint should go after metro pcs. They're the biggest, affordable company for them to absorb. :-)

[ChadBroChillz]

I think USCC would be smarter. Sprint is only going to chomp into VZ/ATT numbers if they increase their coverage. Add SoLinc and USCC would put them closer on that path. SoLinc would give sprint full coverage in Alabama and Georgia.

Here is USCC coverage.

[bigsnake49]

I think USCC would be smarter. Sprint is only going to chomp into VZ/ATT numbers if they increase their coverage. Add SoLinc and USCC would put them closer on that path. SoLinc would give sprint full coverage in Alabama and Georgia.

Here is USCC coverage.

 

Solinc is a wholly owned subsidiary of the Southern Co. They use Solinc as the wireless communications enabler for their own workers. The external customers are just gravy, helping to defray some of the operational costs. I have no idea what they're going to do with their spectrum. From Sprint's perspective it would be great to have a spectrum swap for their 900MHz SMR spectrum.

 

As far as USCC is concerned they could make USCC a wholly owned subsidiary and task them with being their rural service provider. USCC knows how to make money in rural areas and they have a very good reputation. They could assign them their 800MHz SMR spectrum and have them develop a great network. They could probably pick up the remnants of ATNI while they're at it.

Edited September 27, 2012 by bigsnake49

[jonathanm1978]

Solinc is a wholly owned subsidiary of the Southern Co. They use Solinc as the wireless communications enabler for their own workers. The external customers are just gravy, helping to defray some of the operational costs. I have no idea what they're going to do with their spectrum. From Sprint's perspective it would be great to have a spectrum swap for their 900MHz SMR spectrum.

 

As far as USCC is concerned they could make USCC a wholly owned subsidiary and task them with being their rural service provider. USCC knows how to make money in rural areas and they have a very good reputation. They could assign them their 800MHz SMR spectrum and have them develop a great network. They could probably pick up the remnants of ATNI while they're at it.

I guess that's what I was trying to say, but everyone kept talking like they were owned by another carrier and would be forced to do something because of technology changing, in all honesty and knowing what I've seen from southern company since my wife started employment with them, the likelihood of them just spending a chunk of money to keep current tech is more along lines of what they would do. I think they would be more likely to do that, since they own their equipment and they do their maintenance. They are not going to shut-down the vital communication between employees, and solinc covers the entire southern company 26,000 people. Plus the non-employee customers, retirees that decide to keep it when they leave employment, etc. Not a small number, and for $27.99 / month unlimited minutes, direct connect, and data added on at $10.00, you can't really beat them. That's employee price on plans though. At any rate, my wife also said that she doesn't know what's going on with wireless or where I'm getting my info, but she said she seriously doubts they would swap everyone's phone all at once on June 3013 or shut down current phones, she said it would be more like the company to pay whatever to keep things the way they are now, even if only for a couple years until cheaper tech or they prepare a crossover network.

 

Sent from my SPH-L710 using Tapatalk 2

[JeffDTD]

Once the nextel network c

[bigsnake49]

Once the nextel network c

 

Let me answer your purported comment. Once the Nextel network gets decommisioned they will lose their nationwide roaming privileges. Let me answer it by differentiating between the two main customer groups: Internal customers and external customers. As long as the internal customers are within Solinc's area they can still use the service. The requirements for PTT is that is almost always local. The Interconnect part (the normal cell phone part) will need to be addressed by either providing them with roaming capabilities on one of the nationwide cell cariers in a hybrid handset or by providing certain people (executives) with an additional handset with one of the cell carriers or subsidizing their personal handset.

 

The external customers that travel outside the Solinc area would be accommodated by providing them with a hybrid handset. Alternately, they could be jettisoned, leaving Solinc with just providing service to their own people.

 

Of course Sprint can come up with a proposal that would give migrate both internal and exteranl customers with Solinc internal customers given priority access while in the Solinc coverage area. If they could give Solinc SLAs that are satisfactory at a price that Solinc could not refuse, then it might be a go. Otherwise Solinc is prepared to go it alone.

[Boosted20V]

I guess that's what I was trying to say, but everyone kept talking like they were owned by another carrier and would be forced to do something because of technology changing, in all honesty and knowing what I've seen from southern company since my wife started employment with them, the likelihood of them just spending a chunk of money to keep current tech is more along lines of what they would do. I think they would be more likely to do that, since they own their equipment and they do their maintenance. They are not going to shut-down the vital communication between employees, and solinc covers the entire southern company 26,000 people. Plus the non-employee customers, retirees that decide to keep it when they leave employment, etc. Not a small number, and for $27.99 / month unlimited minutes, direct connect, and data added on at $10.00, you can't really beat them. That's employee price on plans though. At any rate, my wife also said that she doesn't know what's going on with wireless or where I'm getting my info, but she said she seriously doubts they would swap everyone's phone all at once on June 3013 or shut down current phones, she said it would be more like the company to pay whatever to keep things the way they are now, even if only for a couple years until cheaper tech or they prepare a crossover network.

 

Sent from my SPH-L710 using Tapatalk 2

 

But do you really think this network will remain nearly as usable to anyone once they can't roam onto Nextel's footprint?

[jonathanm1978]

But do you really think this network will remain nearly as usable to anyone once they can't roam onto Nextel's footprint?

 

Usable, obviously not. Remain online...it very well could and probably will. SoLinc doesn't care if it has to shed some external customers. Communication inside a power utility company is VITAL, if you're talking about entire grids and millions in revenue, communication is a life & death must-have. When I said they use solinc to communicate, I didn't mean it's their office lines and "howdy, how are you" talks, we're talking about people using them to say "yeah, throw the 28 megawatt unit back online" and "pull the 650A breaker so I can do some live work on this line"...

 

There is no back-up radio in case solinc goes down..because they maintain it and it does not go down. Coincidentally, my wife said she was doing compliance around the tower on her plant's location yesterday...they make SURE they have their internal communication, above all else. If they have to bleed a few external subscribers because they don't want to lose what they have, then I foresee them having no problem throwing money at it until it happens. It'll just be part of their budget (which should be voted on and passed q4 2012)...and will be considered part of operating expenses.

 

so while Nextel may give their employees an option to roam outside the plants premises, they aren't really caring whether the phones work OFF the premises. They keep up the network because it's probably convienient for them right now..once the iDEN is shutdown, they may just as well turn Solinc into an employee only operation once again, like it used to be before it went public.

I wouldn't say it's all that public, because even in the area you can get Solinc service, its not that easy to get it..their credit worthiness is extremely high -- like scores above 750 or 800 just to get one line. They aren't in the cell phone business to be in business, they are in the cell phone business to keep SouthernCo employees in touch which other employees...their goal is based on SouthernCo's vision, not Solinc and attracting new customers. We're looking at a different business model here than say, Sprint or Verizon, who want to attract NEW customers and earn NEW money....Solinc isn't really in it to make money (especially considering they pay their employees bills for them, spouses can opt to get one like I mentioned above, $27.99/month taken from the paycheck.)...

I could have a killer phone with Solinc and pretty decent coverage if I wanted, but I'm already with a cell phone company...

 

Biggest thing here is we're looking at a carrier that's run by a utility (and is considered a government entity in some instances), we're not looking at a carrier that's run by a carrier.

[WiWavelength]

They aren't in the cell phone business to be in business, they are in the cell phone business to keep SouthernCo employees in touch which other employees...their goal is based on SouthernCo's vision, not Solinc and attracting new customers. We're looking at a different business model here than say, Sprint or Verizon, who want to attract NEW customers and earn NEW money....Solinc isn't really in it to make money (especially considering they pay their employees bills for them, spouses can opt to get one like I mentioned above, $27.99/month taken from the paycheck.)...

 

So, the Southern Company may be losing money on SouthernLINC. I do not doubt that, as at least one analyst concurs. In that case, my question is this: could the Southern Company cost costs -- short term or long term -- but maintain QoS by outsourcing internal communications to an established wireless communications provider?

 

AJ

[jonathanm1978]

So, the Southern Company may be losing money on SouthernLINC. I do not doubt that, as at least one analyst concurs. In that case, my question is this: could the Southern Company cost costs -- short term or long term -- but maintain QoS by outsourcing internal communications to an established wireless communications provider?

 

AJ

 

As I said in a few posts prior, they pay the bill for 26,000 employees, and consider it operational expenses. to analysts they might be losing money, but to them, it's considered part of operating expenses (which is passed on to clients -- ie, people who pay their power bill).

When it comes to solinc and southern company, you have to look at more than just dollar signs...they don't care about making solinc profitable, it's not there as a profit-gaining expenditure. It's in-place for the employees of the company, instead of handing out motorola 2-way walkie-talkie radios (which can range from $800 on up), or running on a frequency near EMS services, they just use a cellular network technology.

 

Most of you guys are used to seeing a plant where people have motorola walkie-talkie radios on their side, they talk to bosses and other workers with them -- like on certain channels for operations, certain channel for logistics -- well, instead of southern company having this, they have Solinc. NOBODY has a walkie-talkie radio. They entirely depend on Solinc.

 

To them, profit, smofit...who cares.

Edited September 27, 2012 by jonathanm1978

[S4GRU]

But in the long term, even if Southern is OK with losing money, they are going to have more and more problems to maintain the status quo with its current network. It is going to get harder and harder to get new devices that support iDEN for the number of customers they have. Also, hardware makers are going to phase out of the market and focus on making other newer equipment. The same thing is already happening with WiMax.

 

Also, not being able to roam at all is going to be tough in the long run. And Southern is going to have a tough time getting an OEM to build hybrid iDEN units that can roam on other networks. Especially after another a year or so.

 

In the long term, even if Southern loves to lose money and only wants to serve its employees, it is still going to have to transition to something else. And working out a deal with Sprint to do that could be a very good move for both Sprint and Southern. Southern could still have and maintain their own sites with a transition to CDMA/LTE and have a spectrum/network sharing deal with Sprint. Southern customers still get to use their own network on their own sites, but also get nationwide usage on the Sprint network of CDMA/LTE. Sprint customers could roam on Southern, and get access to LTE 800 all over the South.

 

Robert

[jonathanm1978]

That sounds reasonable , Robert, and I agree that no company should love to lose money, but in the end, they've made the decision to provide their employees with cell phones and pay that bill for them...now they may have to transition some, but farming out and selling off ...I don't see that happening. They ink a deal with Sprint, I bet...and actually, I HOPE. SoLinc gets decent in-network coverage at my house (probably because i live across the river from the steam plant, where they have the on-site tower), but there's no in-network Sprint coverage near my house. So if they inked a deal, got CDMA/LTE with Sprint + SoLinc...I could be using the SoLinc (but really Sprint) and hitting 4G..so it would help not only Solinc customers get more coverage in places they don't right now but help Sprint customers in areas where SoLinc thrives.

 

It'll definitely be something to watch, and it'll be something that I am kept up on because my wife will get a phone if they decide to change-over. I'll keep you guys updated on what goes on with that, because if they do, they will make sure employees have their new phones LONG, LONG before a shut-down of current iDEN if they let it go.

[S4GRU]

now they may have to transition some

 

In the long term, it will be more than some. iDEN is going away. Can they get by one year, two years, three years. I am not sure. However, the availability of parts to maintain the iDEN network will get less and less. But before even that, the ability to purchase devices will be going away. And the window to create new hybrid devices will get smaller and smaller. Once OEM's stop supporting iDEN completely, it will be next to impossible to get them to make new hybrid devices for such a small customer base.

 

So if Southern wants to do nothing, which it certainly is allowed to do, in a 3-5 years it will have a virtually unusuable network.

 

Robert

[jonathanm1978]

I don't see near as much impossibility in it, but that is because I know how big they are, and how they work deals regarding power to a cell site.

 

Sent from my SPH-L710 using Tapatalk 2

[S4GRU]

I don't see near as much impossibility in it' date=' but that is because I know how big they are, and how they work deals regarding power to a cell site.

 

Sent from my SPH-L710 using Tapatalk 2[/quote']

 

Do they own foreign factories that can continue to build iDEN equipment, hardware and devices? What I am talking about has little to do with their assets and more to do with what will be available for them to work with out on the market. There is a limit of what can be done with money.

 

Robert via Samsung Galaxy S-III 32GB using Forum Runner

[dedub]

I don't know anything about them, but it sounds like they just might decide to build their own phones/equipment if the market fails to continue to provide them.

[bigsnake49]

But in the long term, even if Southern is OK with losing money, they are going to have more and more problems to maintain the status quo with its current network. It is going to get harder and harder to get new devices that support iDEN for the number of customers they have. Also, hardware makers are going to phase out of the market and focus on making other newer equipment. The same thing is already happening with WiMax. Also, not being able to roam at all is going to be tough in the long run. And Southern is going to have a tough time getting an OEM to build hybrid iDEN units that can roam on other networks. Especially after another a year or so. In the long term, even if Southern loves to lose money and only wants to serve its employees, it is still going to have to transition to something else. And working out a deal with Sprint to do that could be a very good move for both Sprint and Southern. Southern could still have and maintain their own sites with a transition to CDMA/LTE and have a spectrum/network sharing deal with Sprint. Southern customers still get to use their own network on their own sites, but also get nationwide usage on the Sprint network of CDMA/LTE. Sprint customers could roam on Southern, and get access to LTE 800 all over the South. Robert

 

Robert, I agree with you that it will be a great thing if Solinc and Sprint cooperated. I'm not 100% sure if the QChat license Sprint has with Qualcomm is exclusive only for 3G or extends to LTE.

[Boosted20V]

So, the Southern Company may be losing money on SouthernLINC. I do not doubt that, as at least one analyst concurs. In that case, my question is this: could the Southern Company cost costs -- short term or long term -- but maintain QoS by outsourcing internal communications to an established wireless communications provider?

 

AJ

 

These are my thoughts exactly. It would DEFINITELY save them money to just hire an outside telecom firm to handle their wireless communicaitons rather than run an entire network themselves. Seems like a no-brainer, especially as mentioned, with their overall usable footprint becoming TINY.

[ChadBroChillz]

Now this is getting ridiculous. It is one thing to build your own network, when you have the spectrum, but a whole nother thing to get into manufacturing to build custom phones, which need custom processors, antennas, etc. Is this company going to build its own nationwide network? I am sure southen company is a great company, but no way they go through all that just to keep it in house.

 

Especially, when they could become a sprint affiliate, like shentel. They would be in control of their own network, they would get access to sprint's spectrum, and they would receive money for sprint customers roaming on their network. It literally makes no sense to go in house when that option is likely on the table for them.

[Boosted20V]

Now this is getting ridiculous. It is one thing to build your own network, when you have the spectrum, but a whole nother thing to get into manufacturing to build custom phones, which need custom processors, antennas, etc. Is this company going to build its own nationwide network? I am sure southen company is a great company, but no way they go through all that just to keep it in house.

 

Especially, when they could become a sprint affiliate, like shentel. They would be in control of their own network, they would get access to sprint's spectrum, and they would receive money for sprint customers roaming on their network. It literally makes no sense to go in house when that option is likely on the table for them.

 

I was just looking up the financials on this "behemoth" as jonathan seems to think they are and while they are large ~17.5billion in revenue, there are many utilities just as big and none have their own wireless network? Clearly having their own network isn't the end of the world.

 

 

EDIT - Jonathan, I'm not trying to be an ass here but seriously, why do you think Southern couldn't live with communications farmed out to another company? As already mentioned, pretty much every other electrical utility does?

[jonathanm1978]

I seem to think? As I already said, this company doesn't care about profit...is that not understood? You guys are still looking at Solinc as a company who is driven to profit and sits down at shareholder meetings like Sprint does and answers as to why they aren't making profit margins --- THEY DO NOT.

 

So what they can't get phones that have cellular calling on them, they'll pay the highest bidder to make the two-way radios for them to continue using walkie-talkie as they have since SoLinc's inception...because it would cost them WAY too much to replace what they have in-place now. This may not be what they do, but they would do this before they contract someone out, especially since they've stopped using contractors and aren't renewing contracts with ANYONE, I was at the plant today and saw them moving out contractors who had been there for years. They are going to in-plant workers instead of contractors for everything.

That's company-wide too, with everything. They even want the employees to use THEIR health insurance company they've started up, but still offer Blue Cross.

 

Behemoth? I never said that...but you guys underestimate the large footprint that SouthernCompany is...

for example, the grid failure in New York quite a few years ago was due to a turbine hitting the wrong frequence at a SouthernCompany plant and that grid went down. And with what SoCo does in foreign countries, who's to say WHAT they will do.

 

No one here is calling the shots for SoCo..nor am I. I stated what I believe they'll do along with employees I've talked to who've been there for years, but I'm taking cheap shots for stating what I've stated about them.

 

I stated my beliefs without taking pot-shots at anyone, so I guess with this post, I'm DONE. Best thing I can add is just wait and see, as we all will do. I'm sure I'll find out relatively sooner than most what they'll do, since my wife has a SoLinc phone right now and has to be in-contact with higher ups. All I said was I don't see them suddenly putting 26,000 people out of contact if they can do something to keep what they have, and I fully believe they'll drop cellular and keep DirectConnect, along with shedding external customers if they have to. I'm not so caught up in myself that I have to be right all the time...and this has taken up too much of my time already.

[S4GRU]

I seem to think? As I already said, this company doesn't care about profit...is that not understood? You guys are still looking at Solinc as a company who is driven to profit and sits down at shareholder meetings like Sprint does and answers as to why they aren't making profit margins --- THEY DO NOT.

 

So what they can't get phones that have cellular calling on them, they'll pay the highest bidder to make the two-way radios for them to continue using walkie-talkie as they have since SoLinc's inception...because it would cost them WAY too much to replace what they have in-place now. This may not be what they do, but they would do this before they contract someone out, especially since they've stopped using contractors and aren't renewing contracts with ANYONE, I was at the plant today and saw them moving out contractors who had been there for years. They are going to in-plant workers instead of contractors for everything.

That's company-wide too, with everything. They even want the employees to use THEIR health insurance company they've started up, but still offer Blue Cross.

 

Behemoth? I never said that...but you guys underestimate the large footprint that SouthernCompany is...

for example, the grid failure in New York quite a few years ago was due to a turbine hitting the wrong frequence at a SouthernCompany plant and that grid went down. And with what SoCo does in foreign countries, who's to say WHAT they will do.

 

No one here is calling the shots for SoCo..nor am I. I stated what I believe they'll do along with employees I've talked to who've been there for years, but I'm taking cheap shots for stating what I've stated about them.

 

I stated my beliefs without taking pot-shots at anyone, so I guess with this post, I'm DONE. Best thing I can add is just wait and see, as we all will do. I'm sure I'll find out relatively sooner than most what they'll do, since my wife has a SoLinc phone right now and has to be in-contact with higher ups. All I said was I don't see them suddenly putting 26,000 people out of contact if they can do something to keep what they have, and I fully believe they'll drop cellular and keep DirectConnect, along with shedding external customers if they have to. I'm not so caught up in myself that I have to be right all the time...and this has taken up too much of my time already.

 

No one picked on you. You have awfully thin skin. You come to our forums and ask our opinions, and every time we offer them, you shoot across our bow about how much money Southern has.

 

None of us has gotten hung up on profit. We all pretty much conceded that point. But our members have provided reasonable counter points for discussion, and you go back to profits. We are far beyond that.

 

I also believe you are getting hung up that Southern is some sort of anti-social company that will never upgrade its network, nor collaborate with anyone else. You've stated your points, but several mildly disagree with you. And that's OK.

 

I am the founder, owner, administrator and chief moderator here and people disagree with me all the time. All things considered, I think this thread has been relatively calm.

 

Robert

[jonathanm1978]

Either way, Robert, me or no one else knows for sure what will happen, it's all guessing sms no need to argue over. My skin is pretty thick, admin a porn, warez site for several years, mod on several dish network hacking sites back in the day before I went legit and quit hacking. I've been called things that I wondered if it was English, but in the end, in this case we are all guessing whether we are sure of our guess it not. I think my guess is accurate just like everyone else thinks theirs is accurate --bygones are bygones. Maybe we can come back in 8 months and tell what has happened (the company will announce in January or February if major changes are coming to their cellular network, that's when SoComp makes their yearly changes. )

 

Sent from my SPH-L710 using Tapatalk 2