Dish Network proposes merger with Sprint Nextel for $25.5 billion

[JohnHovah]

Interesting...

 

"Multiple sources say Sprint has accepted an offer from Dish Network to acquire the wireless telecommunications giant for $25.5 billion, with $17.3 billion payable in cash and the remaining $8.2 billion in stock.

 

Sprint employees were informed of the agreement via non-disclosure paperwork earlier this afternoon, but the deal still is subject to FCC approval."

 

From http://motorsports-s...nt-accepts.html

 

I don't see anything else about Sprint accepting the DISH offer, though, anywhere else.

 

I certainly hope this is not the case!

[JohnHovah]

From gigaom (with Tim Farrar as guest columnist)

 

http://gigaom.com/20...ing-for-sprint/

 

..........

 

 

 

The greater flexibility DISH has in realizing its mobile video plans vs its fixed broadband ones suggests it may be far more important for it to acquire some of Clearwire’s spectrum than to buy all of Sprint right now. After all, if Deutsche Telekom is willing to strike a deal with DISH after completing its merger with MetroPCS, then Ergen could deploy the 2.5GHz Clearwire spectrum on T-Mobile’s network.

So the question is, might SoftBank agree to sell part of Clearwire’s spectrum to DISH, in exchange for DISH agreeing to withdraw its bid for Sprint? That would certainly be logical, but with two billionaires’ egos at stake, it’s never a given that the most rational outcome will prevail.

 

This would be best served in Sprint (through Clearwire) hosting dish network's network on the 2.5ghz spectrum as an MVNO or partner. Not as a wholly owned Dish subsidiary which could only take a bad situation(that has been improving) and set it back a decade.

[scubajwd]

Oh no..this can't be true..after all my years of hanging on...I can't yet believe it..

[WiWavelength]

Uh, no, that is a NASCAR source, and it has the story wrong. Not to mention, NASCAR folks were all over Kansas City this weekend for "the race." Those fans do nothing to enhance my respect for NASCAR.

 

AJ

[nmbr1scoobs]

Uh, no, that is a NASCAR source, and it has the story wrong. Not to mention, NASCAR folks were all over Kansas City this weekend for "the race." Those fans do nothing to enhance my respect for NASCAR.

 

AJ

 

I'm a longtime fan and some (most) are crazy! Every fan was freaking out that NASCAR was changing the name even though they have no say in it. smh. Thank goodness Moody updated the article.

[Phillycat]

I hope that sprint officially shuts down the dish talk.I'm ready for the softbank deal to go through and give NV a boost.

[ericdabbs]

What I don't get is how is Sprint and Softbank going to convince these minority shareholders like the Omega Advisor Group and John Paulson to vote for the Sprint/Softbank/Clearwire merger when they seem to be infatuated with the Sprint/Dish deal now?

[Fraydog]

I question any source that has half his teeth. No offense to the people on here who like NASCAR. I just have this quaint idea that motorsports reporters should stick to their subject matter.

 

Or, he could have been planted this information by someone close to Dish in order to try to sway the NASCAR crowd to support the Dish bid.

[Fraydog]

What I don't get is how is Sprint and Softbank going to convince these minority shareholders like the Omega Advisor Group and John Paulson to vote for the Sprint/Softbank/Clearwire merger when they seem to be infatuated with the Sprint/Dish deal now?

 

Paulson can get his way though. Just look at how he got DT to compromise on the debt load for T-Mobile and MetroPCS. What I don't get is why he would not have similar or even bigger concerns with Sprint and Dish.

[supert0nes]

What I don't get is how is Sprint and Softbank going to convince these minority shareholders like the Omega Advisor Group and John Paulson to vote for the Sprint/Softbank/Clearwire merger when they seem to be infatuated with the Sprint/Dish deal now?

 

 

Aren't they like 1% of the vote?

[ChadBroChillz]

I do not see Paulson getting the same results. DT opposition had more voting power, plus 2 different firms advised against the terms of the deal. I do not think Dish's offer will get the same support.

 

Omega(1.9%) and Paulson(4.2%) only add up to 6.1%, Paulson owned 9.9% of metro alone. Lets not forget that Paulson did not get a larger share of the combined company. Only that the debt would be reduced and that DT could not sell its shares until 18 months have pasted.

 

Another thing to note is that Sprint Bondholders are against this deal. They heavily favor the Softbank deal. Softbank had to get consent from them to be exempted from the "Change of Control" provision. I do not believe they are going to give that consent to Dish, unless Softbank removes their bid.

 

http://www.kansascity.com/2012/11/20/3926843/sprint-bondholders-consent-to.html

 

http://www.bloomberg.com/news/2013-04-18/sprint-lenders-clash-with-owners-on-dish-bid-corporate-finance.html

[irev210]

I wouldn't get so caught up in it, guys. It's just business.

 

There is a process involved to get SoftBank to up the offer. Basically, Dish can't afford to pay any more than they already offered. Softbank just needs to kick in a few more billion, which is EXTREMELY likely. At that point, it's game over - DISH can't pay any more.

 

Once that happens, Charlie laughs and goes after the next thing.

 

It's not really a huge deal for Softbank. Not ideal, but not a deal breaker either.

[supert0nes]

I wouldn't get so caught up in it, guys. It's just business.

 

Isn't that what this site is for?

[Deval]

Holy crap, I swear I had a heart attack when I read the first post.

[irev210]

Isn't that what this site is for?

 

Well, getting caught up in the world of wireless, sure... getting caught up in things that wont happen? Not sure...

[JeffDTD]

Holy crap, I swear I had a heart attack when I read the first post.

 

Me too. I have quite the imagination and in that split second had this awful fear that Captain Howdy would come reigning down on us like a big ball of hellfire and damnation... kill this site, etc etc

 

"You want unlimited data and more network vision!? Well I want a new yacht, your soul and more importantly, more money. Do you have any idea how expensive this world is ? Why don't you have a hopper!? "

[Conan Kudo]

Actually, I see one way to make this work (and a variant of this may have been suggested here)...

 

Step 1: Take all of T-Mobile's PCS network and merge it into Sprint's and offer current T-Mobile customers with AWS only devices select new PCS based devices free (like for like upgrades). TM customers with 1900Mhz devices that can support the G block will be re-certified to work on Sprint's core network. Immediately shut down all GSM/WCDMA/non-CDMA and create multiple 5x5 LTE carriers in the PCS spectrum. A 5x5 FD LTE carrier is more than enough for current mobile device usage and allows more carriers for redundancy.

 

Step 2: Spin the rest of T-Mobile into a subsidiary that runs what is left of it's network on AWS spectrum, keep the no contract, budget carrier, etc. Staring spinning this spectrum to at&t/Verizon in a deal that they won't oppose Sprint/rural carriers getting a significant chunk of 600Mhz and/or LTE roaming agreements. They get the customers in that area too. Eventually the problem goes away as spectrum is purchased.

 

Step 3: NV 2017 Build the ever living shit out the 600Mhz spectrum, allow roaming/spectrum sharing with rural partner carriers (Sprint always owns the Spectrum, but $0 leases it to the other companies to build out the physical network to Sprint standards). Sprint gets native usage of the network too.

 

Hold on. It would be monumentally stupid to shut down GSM/WCDMA. Not only does T-Mobile receive a lot of M2M money on the GSM side, it would be to Sprint and T-Mobile's benefit to switch to PCS WCDMA. It would align them with the rest of the Americas. G block could retain LTE, and AWS LTE should remain as well. ESMR could run CDMA1X and LTE, and EvDO could live on in any spare PCS spectrum.

 

PCS WCDMA and AWS LTE offer substantial benefits to a combined Sprint and T-Mobile. For one, being unified across the Americas allows for a broader range of devices. Two, you'd have the benefit of SIM-only plans that would actually be markedly useful. Three, you still won't lose CDMA 1X for those people who prefer it, since it would live on in ESMR. And four, 600MHz LTE would allow a further extension of LTE service.

 

And there's no way that the regulators would allow AT&T and Verizon to swallow all that AWS spectrum. Not after what's happened in the last two years. What's with the hate for AWS anyway? It has similar characteristics to PCS, and works quite well.

 

Did I forget to mention that PCS WCDMA and AWS LTE aligns well with Hesse's goal to make Sprint a premier roaming partner for the Americas (and the CCA in particular)?

 

Sprint could easily deploy PCS WCDMA throughout most of the country as-is, too. Network Vision equipment technically already supports it. It would require some rejiggering, but it could be done.

[supert0nes]

What's with the hate for AWS anyway? It has similar characteristics to PCS, and works quite well.

 

AWS is great. Essentially almost as good as PCS except the uplink is in 2100. The problem we have with AWS is that you need to have enough of it to make it worth while to add an extra base band to phones/sites. Sprint can't do that unless they merge with T-Mobile or buy most of it in the next auction.

 

LEAP is not enough AWS and neither is USCellular, etc. for Sprint to use.

[Conan Kudo]

AWS is great. Essentially almost as good as PCS except the uplink is in 2100. The problem we have with AWS is that you need to have enough of it to make it worth while to add an extra base band to phones. Sprint can't do that unless they merge with T-Mobile or buy most of it in the next auction.

 

LEAP is not enough AWS and neither is USCellular, etc. for Sprint to use.

 

Downlink on AWS is on 2.1GHz. Uplink is 1.7GHz. In fact, AWS should have slightly better propagation characteristics than PCS since it allows for higher power levels on downlink and the uplink is lower frequency than PCS. That being said, T-Mobile often gets some crappy cell site locations, which can negate these benefits.

 

If Sprint wants to use AWS, enter into a spectrum+network-sharing deal with T-Mobile or something. There's a ton of options to get into the AWS game.

 

Or don't get into it at all. Sprint's PCS G block, combined with Band 41 and ESMR should be enough for LTE. However, devices will get more expensive because Sprint becomes an island even further than before thanks to CDMA. Either go LTE-only (which is ill-advised), or go PCS WCDMA+PCS G LTE FDD+B41 LTE TDD+tri-band CDMA. SoftBank would boost the economic scale of such a decision because those devices could be made to be compatible with SoftBank Mobile+WCP and Sprint networks. SoftBank could order the same phones for both countries and just turn off non-Sprint CDMA roaming on SoftBank models.

[jefbal99]

Hold on. It would be monumentally stupid to shut down GSM/WCDMA. Not only does T-Mobile receive a lot of M2M money on the GSM side, it would be to Sprint and T-Mobile's benefit to switch to PCS WCDMA. It would align them with the rest of the Americas. G block could retain LTE, and AWS LTE should remain as well. ESMR could run CDMA1X and LTE, and EvDO could live on in any spare PCS spectrum.

 

PCS WCDMA and AWS LTE offer substantial benefits to a combined Sprint and T-Mobile. For one, being unified across the Americas allows for a broader range of devices. Two, you'd have the benefit of SIM-only plans that would actually be markedly useful. Three, you still won't lose CDMA 1X for those people who prefer it, since it would live on in ESMR. And four, 600MHz LTE would allow a further extension of LTE service.

 

And there's no way that the regulators would allow AT&T and Verizon to swallow all that AWS spectrum. Not after what's happened the last two years. What's with the hate for AWS anyway? It has similar characteristics to PCS, and works quite well.

 

Did I forget to mention that PCS WCDMA and AWS LTE aligns well with Hesse's goal to make Sprint a premier roaming partner for the Americas (and the CCA in particular)?

 

Sprint could easily deploy PCS WCDMA throughout most of the country as-is, too. Network Vision equipment technically already supports it. It would require some rejiggering, but it could be done.

 

And that right there gets us back to why it isn't currently possible to merge TMobile and Sprint. Sprint is not giving up its CDMA roots and managing essentially 5 different networks (Sprint SMR/PCS/BRS TMobile AWS/PCS) running 4 different base technologies (CDMA/GSM/WCDMA/LTE) would be a nightmare.

 

Maybe once Sprint finishes NV and has LTE on essentially every tower and TMobile finishes there upgrade getting LTE where they want it, then you could talk about shuttering GSM and WCDMA moving those legacy technologies to CDMA/LTE equivalent and a merger/buyout would make sense. Remember that Softbank uses CDMA over in Japan, so its not going anywhere.

 

Also, as AJ once said, merging Sprint and T-Mobile would force a divestiture of some spectrum, most likely AWS. Sprint isn't giving up any of it's essentially nationwide SMR/PCS/BRS. Or if the FCC didn't force a divestiture, Sprint and/or T-Mobile would lose the hardship argument they currently have with the FCC on blocking/restricting at&t/Verizon from getting in on the 600Mhz auction. Or, the new company wouldn't have the funding due to debt load to bid on the spectrum (sound familiar?).

[supert0nes]

Downlink on AWS is on 2.1GHz. Uplink is 1.7GHz. In fact, AWS should have slightly better propagation characteristics than PCS since it allows for higher power levels on downlink and the uplink is lower frequency than PCS. That being said, T-Mobile often gets some crappy cell site locations, which can negate these benefits.

 

Thanks, I should have looked that up.

 

I think Sprint is very proud of their network right now, as shown by their willingness to strike LTE sharing deals to other networks, but no new roaming agreements. I think they want to stop paying the competition as much as possible.

[Conan Kudo]

Maybe once Sprint finishes NV and has LTE on essentially every tower and TMobile finishes there upgrade getting LTE where they want it, then you could talk about shuttering GSM and WCDMA moving those legacy technologies to CDMA/LTE equivalent and a merger/buyout would make sense. Remember that Softbank uses CDMA over in Japan, so its not going anywhere.

 

You've got your Japanese networks mixed up. au by KDDI has CDMA 850/2100 with LTE 850/2100. SoftBank has UMTS 900/2100 and LTE 1800/2100. NTT docomo has a pretty screwed up configuration with UMTS 850/900/1500/2100 and LTE 1500/2100.

 

Historically, SoftBank has aimed towards global compatibility (as Vodafone K.K., also known as Vodafone Japan, did). Thusly, it uses 3GPP technologies, just as Vodafone Japan did.

 

I have absolutely every reason to believe that SoftBank sees the CDMA2000 network as dead weight, since it is of little use to them.

[irev210]

I have absolutely every reason to believe that SoftBank sees the CDMA2000 network as dead weight, since it is of little use to them.

 

Deadweight or something to support legacy users who are profitable?

 

I am guessing you will see 1x on ESMR for a LONG time, probably a single 1x on PCS as well. In the long run, they'll probably leave those two along with one PCS EVDO channel and move everything to LTE.

 

If you are running LTE, why would you go backwards and deploy anything else? LTE seems like the way to go.

[Conan Kudo]

Deadweight or something to support legacy users who are profitable?

 

I am guessing you will see 1x on ESMR for a LONG time, probably a single 1x on PCS as well. In the long run, they'll probably leave those two along with one PCS EVDO channel and move everything to LTE.

 

If you are running LTE, why would you go backwards and deploy anything else? LTE seems like the way to go.

 

Because LTE will not be the primary choice for roaming or M2M for a very long time. The explosion of LTE bands makes it very difficult to suggest as a cheap M2M or roaming network technology. As GSM is retired globally (along with all the patents for it expire), UMTS will become the new "cheap" network technology. Since it only requires five bands for broad global compatibility, it only makes sense to get into that. Plus, the cost to enable WCDMA is incremental for Sprint. Network Vision technology already supports it.

 

In-bound roaming and M2M for UMTS are both very profitable businesses, especially with international events. Sprint's costs for devices would go down considerably thanks to a larger scale of economies. Sprint, SoftBank+WCP, China Mobile, and Bharti Airtel would be able to use the same devices with minimal software customization (the GTI RFP/spec supports GSM, WCDMA, LTE FDD, and band 38/40/41 LTE TDD). That's a win for Sprint in my book, since Sprint can afford better devices more cheaply this way.

 

However, I am not saying that CDMA should completely go away. CDMA1X will move to ESMR, and one PCS EvDO carrier may remain.

[jefbal99]

You've got your Japanese networks mixed up. au by KDDI has CDMA 850/2100 with LTE 850/2100. SoftBank has UMTS 900/2100 and LTE 1800/2100. NTT docomo has a pretty screwed up configuration with UMTS 850/900/1500/2100 and LTE 1500/2100.

 

You are correct, my bad