T-Mobile/MetroPCS Merger

[bigsnake49]

Sprint Is Said to Hold Off on MetroPCS Counterbid for Now

 

http://www.bloomberg...?cmpid=msnmoney

 

Maybe they are holding off so that the Sprint stock can go up higher. It will go higher if the have good 3rd quarter results and also good news on LTE deployment.

[iansltx]

T-Mobile has now said that they will keep VoLTE on MetroPCS alive for the time being, but will probably transition away from it to GSM/WCDMA based voice.

 

http://gigaom.com/mobile/t-mobile-will-maintain-metropcss-volte-service-but-its-future-is-up-in-the-air/

 

As AJ mentioned earlier, LTE is inherently more fragile than previous techs. That makes it a not-so-great option for voice unless you've got stellar coverage. T-Mobile has reasonably good coverage on H+ and even better coverage on GSM, but their LTE will be at best a little less than H+, coverage-wise. When you already have to maintain a WCDMA network for legacy devices (and by legacy I mean every phone currently sold by T-Mobile), and that network offers both solid data speeds and simultaneous data and voice capabilities, there's no good reason to move to VoLTE, even if T-Mobile's LTE equipment supports the option.

 

Contrat this with MetroPCS's situation: they have limited spectrum holdings and relatively heavy voice traffic. They can move data traffic aggressively to LTE, but that leaves voice sitting on 1x, where the company might have to deploy two or three carriers to keep up with demand...and every 1x carrier counts. MetroPCS is running 1.4x1.4 LTE in some (many?) areas because they are using the rest of their available spectrum for 1x (and maybe EvDO, but usually those markets are 1x-only from what I recall). So if VoLTE allows demand to be shifted off of 1x enough to refarm one 1x carrier, MetroPCS's LTE capacity in that market more than doubles, improving the user experience for everyone. MetroPCS still has to run 1x for older phones and extra coverage, but they, like Sprint, would in an ideal world be running a single 1xA carrier and using the rest of their spectrum for LTE. The difference is that Sprint can put this 1xA carrier on SMR, while MetroPCS needs to put it on PCS.

 

In short, T-Mobile's network decisions make perfect sense given its network portfolio (GSM which won't be going anywhere soon, HSPA+ which won't be going anywhere soon), as do MetroPCS's (limited spectrum, LTE's capacity advantage over 1x, immediate benefits when a 1x carrier is turned off). That said, when this deal goes through, my guess is that T-Mobile will scrap VoLTE as quickly as possible, swapping VoLTE phones for HSPA+ equivalents (a Samsung Galaxy Blaze should do the trick for the double-handful of LG Connect 4G users who have VoLTE capable phones) and writing off the expense as a migration cost for those subscribers from MetroPCS to T-Mobile networks.

[ericdabbs]

I wonder if Softbank and Sprint situation goes through if they would still try to counter offer for MetroPCS from Tmobile. If that were to happen, watch out because Sprint will be a force to reckon with a majority owner with infusing cash and trying to bring Clearwire from the grave to expose its massive 2.5 GHz spectrum holdings.

[bigsnake49]

I would like for Sprint to counterbid for Metro, if only to get the chance to pry some PCS spectrum from the combined entity.

[Rawvega]

Some strong words from t-mo USA's CEO John Legere...

 

Talking about MetroPCS merger:

 

This deal could not be more ideal in terms of the complementary spectrum that it creates. It really could not be more perfect in terms of what it will do for us with regard to our 4G LTE roll out. We will have significant LTE spectrum capacity in most major cities in the United States. I'm talking about being clearly superior to AT&T and Sprint. We are in the midst of a process and a transformation that is going to take the combined company to an incredible place.

 

Talking about overtaking Sprint for third place in the U.S by subscribers:

 

Sprint’s network capabilities are so clearly inferior to ours. Our brand is strong and getting stronger. Our brand image is younger and edgier and we know that appeals to the marketplace. And we have a young, aggressive, world-class team. So yes, I would clearly set a target for us to catch up to and surpass Sprint and move into the third position in this marketplace. It’s not going to be 2013. And it may not be 2014. But my team gets excited about looking into the future and feeling that this is a company ready to fight and win.

 

http://www.telekom.com/media/157402

 

Just a thought, but maybe they should stop losing postpaid customers before their CEO starts talking about passing up a carrier that they're currently trailing by over 20 million subscribers...

 

Edit: It's interesting that t-mobile USA really seems to have a hard-on for Sprint (and it seems to pervade down to their customers) whereas Sprint always seems to view t-mobile as a possible merger partner down the road and doesn't exude all of that hostility towards them (at least publicly).

 

it's also telling that Son comes onto the scene and he doesn't really even bother to mention t-mo His focus is on at&t and VZW.

[WiWavelength]

Some strong words from t-mo USA's CEO John Legere...

 

Yeah, that is called preaching to the choir. Neal Gompa, one of T-Mobile's biggest followers, will eat this up. Expect a forthcoming ExtremeTech article on Legere's comments, especially the claim that "Sprint’s network capabilities are so clearly inferior to ours."

 

AJ

[bigsnake49]

Some strong words from t-mo USA's CEO John Legere...

 

Talking about MetroPCS merger:

 

 

 

Talking about overtaking Sprint for third place in the U.S by subscribers:

 

 

 

http://www.telekom.com/media/157402

 

Just a thought, but maybe they should stop losing postpaid customers before their CEO starts talking about passing up a carrier that they're currently trailing by over 20 million subscribers...

 

Edit: It's interesting that t-mobile USA really seems to have a hard-on for Sprint (and it seems to pervade down to their customers) whereas Sprint always seems to view t-mobile as a possible merger partner down the road and doesn't exude all of that hostility towards them (at least publicly).

 

it's also telling that Son comes onto the scene and he doesn't really even bother to mention t-mo His focus is on at&t and VZW.

 

He'd better watch out or Sprint might just steal Metro from just under his nose. Masayoshi Son does not like all this trash talking and might go ninja on his behind.

[iansltx]

He'd better watch out or Sprint might just steal Metro from just under his nose. Masayoshi Son does not like all this trash talking and might go ninja on his behind.

 

Or just slip the FCC a note that mentions how much spectrum T-Mobile will have in PCS once the transaction is complete in certain markets...and suggest that TMo be forced to spin off some of this PCS spectrum if they want to merge. Then turn around and buy up that spectrum to help markets that don't have much as-is. Sprint can probably mention how efficiently T-Mobile is using its spectrum, particularly post-merger (MHz/population), as a reason to require the swap.

 

And then allow all MetroPCS ESN/MEIDs to activate on Sprint (though those phones would be 3G-only at this point). Target markets where Sprint has gotten NV underway (DFW, Atlanta, NYC, Chicago, LA) and go after customers with a combination of Virgin Mobile and other MVNOs (allow bring-your-own-MetroPCS-device for folks like Ting). Emphasize the fact that T-Mobile will push for a phone replacement sooner rather than later for every MetroPCS user, and skim off as many customers as they can while the merger FUD goes down. I'll bet Sprint could get a million or two customers this way.

[WiWavelength]

I think that Legere is putting forth just a lot of jersey popping bluster.

 

"We will have significant LTE spectrum capacity in most major cities in the United States."

 

Hey, John, how does your spectrum portfolio look in St. Louis, Cincinnati, Milwaukee, etc.? Let me tell you. Not good. Your LTE capacity is going to be highly inconsistent from market to market. Way too much in some, lacking in others.

 

"Sprint’s network capabilities are so clearly inferior to ours."

 

Sprint's network has 38,000 cell sites to your 33,000. Do the math, then try again.

 

"Our brand image is younger and edgier and we know that appeals to the marketplace."

 

Let me translate: "younger and edgier" means credit challenged young people on prepaid who have little brand loyalty and provide low ARPU. Yep, John, you win that one.

 

AJ

[S4GRU]

I think that Legere is putting forth just a lot of jersey popping bluster.

 

Hey' date=' John, how does your spectrum portfolio look in St. Louis, Cincinnati, Milwaukee, etc.? Let me tell you. Not good. Your LTE capacity is going to be highly inconsistent from market to market. Way too much in some, lacking in others.

 

Sprint's network has 38,000 cell sites to your 33,000. Do the math, then try again.

 

Let me translate: "younger and edgier" means credit challenged young people on prepaid who have little brand loyalty and provide low ARPU. Yep, John, you win that one.

 

AJ[/quote']

 

I needed this laugh tonight. Thanks!

 

Robert via Nexus 7 using Forum Runner

[Guest 503ducati]

http://www.rcrwirele...-sprint-nextel/

 

"While the target of that future expansion was not disclosed, Sprint Nextel has made recent waves with talk of a counter bid for MetroPCS, which rival T-Mobile USA announced earlier this month it would acquire. Sprint Nextel reportedly held a board meeting immediately after the T-Mobile USA/MetroPCS announcement to discuss a counter offer, though Softbank’s investment into Sprint Nextel could also have been the cause of such a get together. A fresh bid from Softbank/Sprint Nextel could be welcomed by MetroPCS shareholders, some of which were not happy with the convoluted terms of T-Mobile USA’s offer."

[Rawvega]

That would be a definite fly in t-mobile's ointment

[Guest 503ducati]

http://online.barron...989363534.html?

 

With last week's $20.1 billion deal to buy a 70% stake in Sprint Nextel (S), Son again is vying for No. 1. This time he wants Softbank, currently the world's No. 3 telecom, to jump into the lead spot and, by extension, become the global leader in mobile Internet. The Sprint purchase came just a week after Softbank bought a smaller Japanese rival telco eAccess for $2.3 billion in a share swap. Son even indicated he was looking atMetroPCS Communications (PCS), too.

 

 

 

"YES!!...and it counts!!..."

- Marv Albert

 

 

 

Edited October 23, 2012 by 503ducati

[ChadBroChillz]

Tmobile exCEO Philip Humm said Tmobile was going to pass Sprint and we know how his reign turned out.

[DaQue]

Just buy T-Mobile....

[ChadBroChillz]

No thanks. Buying Tmobile would be horrible.

[centermedic]

Just buy T-Mobile....

Just starve them out. Sprint/Softbank can pursue the same strategy that T-Mobile is pursuing with much better results. T-Mobile undercutting Sprint only affects Sprint. Sprint undercutting T-Mobile affects everybody.