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Will Sprint seek PCS divestitures from the Tmobile/MetroPCS merger

ericdabbs

By ericdabbs
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ericdabbs Member Level: LTE Advanced

ericdabbs

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I was wondering if you guys think that Sprint will try to pursue PCS divestitures from the Tmobile/MetroPCS merger to bolster those 20 MHz markets that are in dire needs of more PCS spectrum?

 

I guess the only way this will happen is if the FCC would have to force Tmobile to divest PCS spectrum if that was a condition for approval. I would like to see make an attempt at PCS divesitures if possible since it appears that going forward AWS spectrum will be Tmobile's bread and butter spectrum for LTE.

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maxsilver Member Level: 3G EVDO

maxsilver

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This seems very unlikely, considering Sprint's current plan to purchase Clearwire will give them more than double the spectrum T-Mobile / MetroPCS will have.

 

If anything, it might be a requirement on Sprint to divest some of their Clearwire EBS spectrum to other players. (This seems very unlikely to me too, but if any divestitures were to occur, I'd expect them in the Sprint/Clear deal before the T-Mobile/MetroPCS deal)

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Boosted20V Member Level: eHRPD

Boosted20V

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This seems very unlikely, considering Sprint's current plan to purchase Clearwire will give them more than double the spectrum T-Mobile / MetroPCS will have.

 

If anything, it might be a requirement on Sprint to divest some of their Clearwire EBS spectrum to other players. (This seems very unlikely to me too, but if any divestitures were to occur, I'd expect them in the Sprint/Clear deal before the T-Mobile/MetroPCS deal)

 

I agree that because of the CLWR deal, it is unlikely Sprint would have a foot to stand on in arguing they should divest.

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iansltx Member Level: 4G WiMax

iansltx

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At this point, thanks to picking up USCC spectrum in Chicago and the surrounding areas, Sprint has less to gain from MetroPCS spectrum. The number of markets where they're under 30MHz of PCS...and could be pushed to 30+ by a MetroPCS divestiture...are pretty low. Though if T_Mobile decided that it wanted to sell some PCS I'm sure Sprint would love to buy it.

 

Buying Leap/CricKet on the other hand...

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WiWavelength Member Level: LTE Advanced

WiWavelength

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If anything, it might be a requirement on Sprint to divest some of their Clearwire EBS spectrum to other players.

 

Sprint-Clearwire could not really divest EBS spectrum because it is not actually licensed any EBS spectrum. Rather, it only leases EBS spectrum from educational institutions.

 

If Sprint-Clearwire were forced to terminate those leases, that would financially penalize the educational institutions more than anything else. So, I would expect an FCC consent order to require Sprint-Clearwire to allow other carriers the first right to negotiate with EBS lessors as those leases come up for renewal. And my guess is that few other carriers would step up, such that Sprint-Clearwire would be able to renew most EBS leases that it desired.

 

AJ

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ericdabbs Member Level: LTE Advanced

ericdabbs

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At this point, thanks to picking up USCC spectrum in Chicago and the surrounding areas, Sprint has less to gain from MetroPCS spectrum. The number of markets where they're under 30MHz of PCS...and could be pushed to 30+ by a MetroPCS divestiture...are pretty low. Though if T_Mobile decided that it wanted to sell some PCS I'm sure Sprint would love to buy it.

 

Buying Leap/CricKet on the other hand...

 

Buying Leap for its PCS spectrum is something I think Sprint should still consider in the future since they do have some valuable PCS spectrum in their C block. Sprint already has 3 deals on the table waiting for FCC approval so they have enough on their plate for now. Executing Network Vision and complete ASAP should be their number 1 priority to stay with the competition.

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bigsnake49 Member Level: LTE Advanced

bigsnake49

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Buying Leap for its PCS spectrum is something I think Sprint should still consider in the future since they do have some valuable PCS spectrum in their C block. Sprint already has 3 deals on the table waiting for FCC approval so they have enough on their plate for now. Executing Network Vision and complete ASAP should be their number 1 priority to stay with the competition.

 

I have long advocated that Sprint buy Metro and Leap for their PCS/AWS spectrum, trading AWS to T-Mobile and AT&T. I think that Sprint will make a bid for T-Mobile/Metro. I don't know whether it will come before or after both deals close.

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bigsnake49 Member Level: LTE Advanced

bigsnake49

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Naw I think sprint isn't gonna bite on this deal because they want the multiple deals they have going through this year to go through. Plus they already has their hands full

 

Sent from my Sprint Galaxy Nexus rockin 4.2.1 using Tapatalk 2

 

Yeah, maybe the old Sprint would. The new Sprint with Masayoshi will be a lot more aggressive.

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xcharles718 Member Level: 3G EVDO

xcharles718

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I don't see Sprint seeking for any divestitures from NewCo(T-Mo/Metro). The Sprint/Clearwire/SoftBank/USCC deal combo-pak is already moving it's way through our regulatory system. Not only would it look a bit greedy to go after NewCo for divestitures, but it may only bring another party that would get in the their way from getting these deals done.

 

As for what may come after these deals are completed, I don't see any budding relationship with Sp-ank-wire(don't google that) and NewCo for at least a few years.

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xenadu Member Level: 1x Advanced

xenadu

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They may try to buy it just to keep Sprint out; that's the great thing about the Revenge of Ma Bell... They get a government-protected monopoly, including rights to use *my* land to run their lines, then they get to lobby state legislatures to make it illegal to compete or run municipal broadband, then sign non-compete deals amongst each other. Then they can use their massive market power and cash to put the squeeze on potential competitors. If anyone tries to interfere they just get shouted down for messing with the "free" market.

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Deval Member Level: LTE Advanced

Deval

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They may try to buy it just to keep Sprint out; that's the great thing about the Revenge of Ma Bell... They get a government-protected monopoly, including rights to use *my* land to run their lines, then they get to lobby state legislatures to make it illegal to compete or run municipal broadband, then sign non-compete deals amongst each other. Then they can use their massive market power and cash to put the squeeze on potential competitors. If anyone tries to interfere they just get shouted down for messing with the "free" market.

 

Frightening...that's why no matter how evil the cable companies are, I'm glad they exist to offer some form of competition.

 

Verizon on the FiOS side is bending over backwards for customers.

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