Sprint to buy spectrum, customers from USCC

[bigsnake49]

OVERLAND PARK, Kan.--(BUSINESS WIRE)--Sprint (NYSE: S) today announced that it has entered into a definitive agreement with U.S. Cellular (NYSE: USM) to acquire PCS spectrum and customers in parts of Illinois, Indiana, Michigan, Missouri and Ohio including the Chicago and St. Louis markets for $480 million in cash and the assumption of certain liabilities. The additional spectrum will be used to supplement Sprint’s coverage in these areas as it continues to deploy its Network Vision upgrade and roll out 4G LTE nationally.

“This transaction will enable us to strengthen our business and become a more robust competitor”

“This transaction will enable us to strengthen our business and become a more robust competitor,” said Dan Hesse, Sprint’s CEO. “Acquiring this spectrum will significantly increase Sprint’s network capacity and improve the customer experience in several important Midwest markets including Chicago and St. Louis. We welcome the new customers in these markets and look forward to providing them with Sprint’s unique combination of unlimited plans, an iconic device portfolio and unmatched customer service.”

Under the terms of the agreement, Sprint will acquire 20 MHz of PCS spectrum in the 1900 MHz band in various Midwest markets including Chicago, South Bend, Ind. and Champaign, Ill. and 10 MHz of PCS spectrum in the St. Louis market. In addition, the transaction involves approximately 585,000 U.S. Cellular customers. U.S Cellular will continue its business operations outside of these markets following the closing.

 

http://www.businesswire.com/news/home/20121107005545/en/Sprint-Acquire-Spectrum-Customers-Midwest-U.S.-Cellular

 

It's beginning boys and girls.

[Rawvega]

 

It's beginning boys and girls.

 

Wow! Yes, indeed this is likely the precursor to something larger. Granted USCC is getting nearly half a billion dollars, but when you're a company that small that's already been losing postpaid subscribers for a while and you decide to sell well over half a million subscribers, including those where your headquarters is, things aren't looking good for your company imho.

[bigsnake49]

Wow! Yes, indeed this is likely the precursor to something larger. Granted USCC is getting nearly half a billion dollars, but when you're a company that small that's already been losing postpaid subscribers for a while and you decide to sell well over half a million subscribers, including those where your headquarters is, things aren't looking good for your company imho.

 

Don't be surprised if this is followed by a MetroPCS sale of PCS spectrum to Sprint so that Sprint does not make a competing bid to T-Mobile's.

[Rawvega]

Affected area map:

 

[Deval]

I think the collective group of customers just had a breath of relief, which was strong enough to blow our Nor'easter away.

[JeffDTD]

Suppose USC wasnt in the mood to sell the whole farm or sprint wants to wait out closure of the softbank transaction before tackling anything big. Im glad sprint went after spectrum it really needs now, as someone else could swoop in and try to snatch up USC in the meantime.

 

I think this shows aggressive prioritizing from sprint.

[Rawvega]

Ah I see, USCC reported their Q3 today as well. They lost 38K more postpaid subscribers and missed the mark on revenue and earnings per share. Yikes!

[Mercurial1]

Sprint could use both the customers and the spectrum. While I was hoping for a bigger buy I hope this is only the beginning. 2.5 billion is still left so whats next

[bigsnake49]

Sprint could use both the customers and the spectrum. While I was hoping for a bigger buy I hope this is only the beginning. 2.5 billion is still left so whats next

 

What do you mean by 2.5 billion still left?

[Mercurial1]

Does the amount seem low to anyone? Even ignoring spectrum 480000000 divided by 585000 customers is only 820 bucks per postpaid customer. Sprints normal cpga (cost per gross add) has to be maybe 450 to 500(just a guess but I think that is close). So say 500 times 585000 is a cost of 292500000. That means sprint paid 187500000 for the spectrum. What does that equal for mhz cost per pop?

 

 

Sent from my SPH-L710 using Tapatalk 2

 

 

[Mercurial1]

 

What do you mean by 2.5 billion still left?

Softbank infused 3 billion in cash to Sprint through a bond sale.

 

Sent from my SPH-L710 using Tapatalk 2

 

 

[marioc21]

Sprint could use both the customers and the spectrum. While I was hoping for a bigger buy I hope this is only the beginning. 2.5 billion is still left so whats next

 

What do you mean by 2.5 billion still left?

 

I'm guessing he's referring to SoftBank's first initial cash infusion of $3 billion last month.

 

http://newsroom.sprint.com/article_display.cfm?article_id=2436

[bigsnake49]

Softbank infused 3 billion in cash to Sprint through a bond sale.

 

Sent from my SPH-L710 using Tapatalk 2

 

Yeah, never mind, that was the first cash infusion. There is more coming.

[jefbal99]

In the other thread there was a question about rolling out 10x10 LTE carrier, I can't see Sprint doing that in the near future as some of their current LTE devices only support 5x5Mhz:

 

Galaxy Note 2

Galaxy Victory

Galaxy S3

 

I'm guessing there are more, I couldn't find a break down on the Viper, Nexus, etc

[marioc21]

So one thing I'm not clear on. Will this deal expand Sprint's footprint in the midwest or is it just increasing it's spectrum depth in places it already provides service?

[marioc21]

In the other thread there was a question about rolling out 10x10 LTE carrier, I can't see Sprint doing that in the near future as some of their current LTE devices only support 5x5Mhz:

 

Galaxy Note 2

Galaxy Victory

Galaxy S3

 

I'm guessing there are more, I couldn't find a break down on the Viper, Nexus, etc

 

I think of all Sprint's LTE phones only the HTC Evo supports 10x10. Everything else is 5x5. I'm just spitting this out from memory though.

[leozno1]

I think of all Sprint's LTE phones only the HTC Evo supports 10x10. Everything else is 5x5. I'm just spitting this out from memory though.

 

Wait, so they also have to build into the devices the ability to connect to bands that wide? I thought as long as a device supported the correct frequency and type of technology they should be able to connect without a problem.

[supert0nes]

I don't understand why their Minnesota PCS spectrum wasn't added to this deal.

[zodiac12345]

I think of all Sprint's LTE phones only the HTC Evo supports 10x10. Everything else is 5x5. I'm just spitting this out from memory though.

 

From what i remember reading, all phones EXCEPT the Note 2, Victory and S3 support 10x10 MHz.

[bigsnake49]

So one thing I'm not clear on. Will this deal expand Sprint's footprint in the midwest or is it just increasing it's spectrum depth in places it already provides service?

 

It will just increase the spectrum depth. It will do nothing for coverage.

[daphantoms]

Does the buyout effect Peoria/ Washington IL area map isn't too clear on what areas? I hope it does US Cellular around my area is good

[Mercurial1]

 

It will just increase the spectrum depth. It will do nothing for coverage.

The article says that certain obligations are included as well but does not state what those are. If us cellular has no more customers in that area then those obligations may be sprint taking over tower leases. But that is just a guess.

 

Sent from my SPH-L710 using Tapatalk 2

 

 

[Rawvega]

That guess makes pretty good sense.

[jefbal99]

I think of all Sprint's LTE phones only the HTC Evo supports 10x10. Everything else is 5x5. I'm just spitting this out from memory though.

 

iDevices supports wider carriers, so does the Photon Q.

 

Wait, so they also have to build into the devices the ability to connect to bands that wide? I thought as long as a device supported the correct frequency and type of technology they should be able to connect without a problem.

 

Yes, devices need to be able to communicate on the wider bands.

[DaQue]

Quesion on this for a Note 2 user in STL will this effectively double the number of users that could get full speed data or would it require a new phone with another PCS band in it. Hope S4GRU will do s wall post on what it means to users in both 10 an 20 dandwidth areas.

 

Edit: also will the panels that were skeduled long ago to go into these areas fully suport all the new bandwidth or will we have to wait for another round of upgrades?