All Sprint acquisition discussion (was "Japan's Softbank in talks for $12.8 bln Sprint stake")

[utiz4321]

Does anyone else think that dish's next move will be to bid on pcs h block? This might be the cheapest way for them to force sprint back to the table and deal with them on a network deal. Sprint wants/needs pcs h and I think it is contiguous with dish spectrum (feel free to correct me if I am wrong) so it has value to them beyond just leverage. Given dish's track record I can see the pcs h auction being another opportunity to cause headaches for sprint. Also, I thought the FCC was going to auction off pcs h this year but haven't heard anything about it recently, is that still the plan or has that changed?

[ericdabbs]

Does anyone else think that dish's next move will be to bid on pcs h block? This might be the cheapest way for them to force sprint back to the table and deal with them on a network deal. Sprint wants/needs pcs h and I think it is contiguous with dish spectrum (feel free to correct me if I am wrong) so it has value to them beyond just leverage. Given dish's track record I can see the pcs h auction being another opportunity to cause headaches for sprint. Also, I thought the FCC was going to auction off pcs h this year but haven't heard anything about it recently, is that still the plan or has that changed?

 

I am pretty sure Dish is going to try to bid for the PCS H block spectrum when the auction occurs.  The PCS H block spectrum is 10 MHz (1915-1920 MHz and 1995-2000 MHz) and Dish's spectrum is (2000-2020 MHz and 2180-2200 MHz) so the PCS H block would be contiguous from Dish's point of view.  I am sure Dish is going to try to press Sprint to give them favorable terms to help them deploy their S-band 2 GHz spectrum. 

 

With this Softbank and Clearwire fiasco, would Sprint still even entertain a working relationship with Dish?  In terms of the PCS H block auction, I doubt it will be this year.  I would have thought that the FCC would have given all interested parties the auction date and some notice well ahead of time for preparation.  I am not sure what the hold up is whether it is the FCC still trying to define and address the rules for interference issues or power limits on the uplink.  My guess is that we will probably see the PCS H auction sometime in 1H 2014.

[JeffDTD]

Unknown answers remain: 

 

Will the FCC require Sprint to divest any of Clearwire's spectrum?

 

What will Dish have accomplished via mergers and acquisitions by 2014? 

 

Dish's "strategy" (I use that word losely, a maniac is driving)  will have evolved by 2014.  If they don't get anything out of Sprint this year, I doubt they'll still be begging in 2014.  

 

As far as "partnerships" with CharChar... Its fine to sell assets to him or make trades, but an alliance or partnership is the last thing that any board or committee with an earnest interest in being a part of a their successful future should be interested in. As he's proven time and again, when CharChar changes his mind, Dish does whatever the hell it wants.  If he can't get his way, he buys you out or you go to court. 

[ericdabbs]

As far as "partnerships" with CharChar... Its fine to sell assets to him or make trades, but an alliance or partnership is the last thing that any board or committee with an earnest interest in being a part of a their successful future should be interested in. As he's proven time and again, when CharChar changes his mind, Dish does whatever the hell it wants.  If he can't get his way, he buys you out or you go to court. 

 

The problem with Dish is that they have 2 problems:  1) They need more spectrum and 2) They need a wireless carrier to deploy this spectrum.  Sprint wouldn't mind selling Dish some of the 2.5 GHz spectrum but the thing is they will still be begging someone to help build their network for them. His only options left really are Tmobile, Leap and US Cellular and I am not sure how interested Tmobile USA is.  I know Deutsch Telekom wants out of the US market but will it be that desperate to accept Dish's terms.  We will have to see but in terms of Dish's view getting additional spectrum does not solve all their problems.  Dish is on the clock to build out the S-band spectrum footprint or risk losing it and they need to start creating a plan because that time will be here before you know it.

[bigsnake49]

I am pretty sure Dish is going to try to bid for the PCS H block spectrum when the auction occurs.  The PCS H block spectrum is 10 MHz (1915-1920 MHz and 1995-2000 MHz) and Dish's spectrum is (2000-2020 MHz and 2180-2200 MHz) so the PCS H block would be contiguous from Dish's point of view.  I am sure Dish is going to try to press Sprint to give them favorable terms to help them deploy their S-band 2 GHz spectrum. 

 

With this Softbank and Clearwire fiasco, would Sprint still even entertain a working relationship with Dish?  In terms of the PCS H block auction, I doubt it will be this year.  I would have thought that the FCC would have given all interested parties the auction date and some notice well ahead of time for preparation.  I am not sure what the hold up is whether it is the FCC still trying to define and address the rules for interference issues or power limits on the uplink.  My guess is that we will probably see the PCS H auction sometime in 1H 2014.

 It's not really contiguous as in belonging to the same band. They are are adjacent on the PCS H uplink.

[bigsnake49]

I am pretty sure Dish is going to try to bid for the PCS H block spectrum when the auction occurs.  The PCS H block spectrum is 10 MHz (1915-1920 MHz and 1995-2000 MHz) and Dish's spectrum is (2000-2020 MHz and 2180-2200 MHz) so the PCS H block would be contiguous from Dish's point of view.  I am sure Dish is going to try to press Sprint to give them favorable terms to help them deploy their S-band 2 GHz spectrum. 

 

With this Softbank and Clearwire fiasco, would Sprint still even entertain a working relationship with Dish?  In terms of the PCS H block auction, I doubt it will be this year.  I would have thought that the FCC would have given all interested parties the auction date and some notice well ahead of time for preparation.  I am not sure what the hold up is whether it is the FCC still trying to define and address the rules for interference issues or power limits on the uplink.  My guess is that we will probably see the PCS H auction sometime in 1H 2014.

 

Why would Dish bid for the spectrum, besides driving the price for Sprint? How about Sprint driving the price up for Dish?

 

PCS H is power limited, which means that coverage will be limited as well. Why would Sprint want it? If they need coverage limited spectrum, they have Clearwire's.

Edited June 24, 2013 by bigsnake49

[mozamcrew]

The problem with Dish is that they have 2 problems:  1) They need more spectrum and 2) They need a wireless carrier to deploy this spectrum.  Sprint wouldn't mind selling Dish some of the 2.5 GHz spectrum but the thing is they will still be begging someone to help build their network for them. His only options left really are Tmobile, Leap and US Cellular and I am not sure how interested Tmobile USA is.  I know Deutsch Telekom wants out of the US market but will it be that desperate to accept Dish's terms.  We will have to see but in terms of Dish's view getting additional spectrum does not solve all their problems.  Dish is on the clock to build out the S-band spectrum footprint or risk losing it and they need to start creating a plan because that time will be here before you know it.

 

Isn't the TMUS/MPCS deal going to make the combined company publicly listed, and DT will just be a large shareholder? Then DT can just slowly sell off their TMUS/MPCS shares. So DT already has an exit strategy. They don't have to sell it all off at once now.

[utiz4321]

Why would Dish bid for the spectrum, besides driving the price for Sprint? How about Sprint driving the price up for Dish?

 

PCS H is power limited, which means that coverage will be limited as well. Why would Sprint want it? If they need coverage limited spectrum, they have Clearwire's.

I thought it was the lower end of dish's existing spectrum that the FCC imposed power limitations on. Sprint would want it to have nation wide 10x10 lte.

[ericdabbs]

Why would Dish bid for the spectrum, besides driving the price for Sprint? How about Sprint driving the price up for Dish?

 

PCS H is power limited, which means that coverage will be limited as well. Why would Sprint want it? If they need coverage limited spectrum, they have Clearwire's.

 

I don't think Dish is truly interested in the H block spectrum other than to drive the price up for Sprint mainly because Dish already has a tough time finding a way to deploy the S-band spectrum.  Spending more money to win most of the H block licenses without a plan on how to deploy both its H block and S-band spectrum is dumb and it wastes more money.

 

It is no secret that Sprint has made it known that it wants to bid on the H block despite the auction rules of power limitations of the spectrum established late 2012.  For whatever reason, this power limitation issue hasn't deterred Sprint's efforts for wanting the spectrum to add another LTE carrier so I think Sprint truly want the spectrum and I don't seem them purposely driving up the price for Dish because why pay more than you need to.

 

I don't think the H block spectrum will cost that much and given the power limitations and the Sprint fees that would need to be given if another carrier purchases the licenses, I don't think Verizon, ATT and Tmobile will believe its worth the efforts if it also has to pay extra fees and have to worry about interference from Dish S-band and PCS G block.

[ericdabbs]

Isn't the TMUS/MPCS deal going to make the combined company publicly listed, and DT will just be a large shareholder? Then DT can just slowly sell off their TMUS/MPCS shares. So DT already has an exit strategy. They don't have to sell it all off at once now.

 

First off, Tmobile and MetroPCS is publicly traded under the ticker symbol TMUS.  Yes that is true that DT can slowly sell its majority stake in shares and get out of TMUS but without a catalyst to spike up the stock price, DT is not going to sell at this point.  A Dish buyout of Tmobile would spike the stock price up if both sides agreed on the buyout price.

[Rawvega]

They can't slowly sell off shares until 18 months from the close of the merger. If they wanted to, they could sell off all of their shares in one fell swoop before the 18 month period has elapsed.

 

Sent from my SPH-L900 using Tapatalk 4 Beta

 

 

[marioc21]

Very interesting read from the journal this morning.  Here's Sprint's new boss talking about future plans.

 

 

SoftBank CEO Says Network Speeds Key to Sprint Revival

 After weeks of suspense due to a rival bid from cable-network operatorDish Network Corp., DISH -3.07% Sprint Nextel Corp. S -1.60% shareholders are meeting this week to approve SoftBank Corp.'s 9984.TO -3.04% $21.6 billion deal to acquire 78% of the U.S. wireless carrier.

The vote, along with expected approval from the U.S. Federal Communications Commission, clears the way for the deal to close in early July, pitting SoftBank's Chief Executive Masayoshi Son, an Internet billionaire, against AT&T Inc. T -0.03% and Verizon Wireless, the two titans of the U.S. wireless industry.

But even with the acquisition cleared, the road ahead for Mr. Son won't be easy. Developing networks in the U.S. is difficult, requiring huge areas to be covered and upgraded unlike the more densely populated Japan. According to data from Cisco Visual Networking Index, the average smartphone connection speed in Japan was 2.1 megabytes per second in 2012—nearly 40% faster than the average 1.5 megabytes per second in the U.S.

...

But Mr. Son believes the combined company will be able to disrupt the balance of power in the U.S. wireless industry. In an interview with The Wall Street Journal last month, Mr. Son said that in any industry dominated by two companies, the incumbents don't need to bring "severe competition" in pricing or services. But when there are three competitors, he said, there is suddenly a different story.

"That will stimulate the whole industry in terms of both innovation, the prices, services, everything," he said.

Mr. Son has vowed to let Sprint continue its unlimited data plans, a factor that distinguishes it in the U.S. market as AT&T and Verizon Wireless have moved to pricing models that charge people for the amount of data they consume.

 

 

A few more things in there. Worth the read to see a glimpse into what the future direction for Softbank/Sprint will be.

 

http://online.wsj.com/article/SB10001424127887323683504578566982888488180.html

[bigsnake49]

Here's my wishlist for Sprint going forward:

 

1. Close the two deals (Softbank, Clearwire)

2a. Finish Network Vision

2b. Merge with T-Mobile and various other sundry regionals (USCC, C-Spire, Leap)

3. Exchange their 900MHz spectrum for Solinc's 800MHz in Solinc's area and either donate it to utilities in the rest of the country or give it back to the FCC

4. Bid on 600MHz spectrum and get a sizeable chunk (20x20)

5. Use the 800Mhz for voice only

7. Profit ???

[IamMrFamous07]

Here's my wishlist for Sprint going forward:

 

1. Close the two deals (Softbank, Clearwire)

2a. Finish Network Vision

2b. Merge with T-Mobile and various other sundry regionals (USCC, C-Spire, Leap)

3. Exchange their 900MHz spectrum for Solinc's 800MHz in Solinc's area and either donate it to utilities in the rest of the country or give it back to the FCC

4. Bid on 600MHz spectrum and get a sizeable chunk (20x20)

5. Use the 800Mhz for voice only

7. Profit ???

My wishlist is about the same but I think Softbank/Sprint should acquire US cell. I know there not a national carrier but they still have good spectrum in rural areas. At this point I don't think sprint should worry about tmobile

 

 

What time is the shareholder meeting?

[marioc21]

My wishlist is about the same but I think Softbank/Sprint should acquire US cell. I know there not a national carrier but they still have good spectrum in rural areas. At this point I don't think sprint should worry about tmobile

 

 

What time is the shareholder meeting?

 

Meeting is at 11am ET.

[bucdenny]

In the meeting now 

[bucdenny]

More than 2 billion shares 80 percent in favor of Softbank.  The deal is closed! 

[bucdenny]

That was quick meeting. Only 10 minutes.

[Ryan]

More than 2 billion shares 80 percent in favor of Softbank. The deal is closed!

 

So can I loosen my spincther now?

 

Sent from my SPH-L710 using Tapatalk 2

 

 

[marioc21]

Now the only thing left is for Clearwire to hold its shareholder meeting. Unfortunately that's still two weeks away.  July 8 at 10:30am PT/1:30pm ET. 

[Rickie546]

http://finance.yahoo.com/news/sprint-shareholders-overwhelmingly-approve-merger-151300350.html

[marioc21]

And here's the official press release.

 

http://finance.yahoo.com/news/sprint-shareholders-overwhelmingly-approve-merger-151300350.html

 

 

Sprint Shareholders Overwhelmingly Approve Merger Agreement with SoftBank

OVERLAND PARK, Kan.--(BUSINESS WIRE)--

 Sprint Nextel Corporation (“Sprint”) (NYSE:S) shareholders voted today to approve and adopt the previously announced merger agreement providing for a substantial investment by SoftBank Corp. (“SoftBank”) (TSE:9984). Sprint shareholders overwhelmingly approved the deal, with approximately 98 percent of the votes cast at today’s special shareholders meeting voting in favor of the merger agreement, representing approximately 80 percent of Sprint’s outstanding common stock as of April 18, 2013, the record date for the special meeting. 

...

[WiWavelength]

Very interesting read from the journal this morning.  Here's Sprint's new boss talking about future plans.

 

 

A few more things in there. Worth the read to see a glimpse into what the future direction for Softbank/Sprint will be.

 

http://online.wsj.com/article/SB10001424127887323683504578566982888488180.html

 

"According to data from Cisco Visual Networking Index, the average smartphone connection speed in Japan was 2.1 megabytes per second in 2012—nearly 40% faster than the average 1.5 megabytes per second in the U.S."

 

A non tech reporter getting megabytes and megabits confused, imagine that.  Well, I can guarantee that the average smartphone connections speeds in Japan and the US are not 16.8 Mbps and 12 Mbps, respectively.

 

AJ

[supert0nes]

The FCC still has to approve, correct?

[bucdenny]

Sprint stockholders will have the option to elect to receive cash in the amount of $7.65 or one of New Sprint common stock for each share of Sprint common stock owned by them (subject to the previously disclosed proration provisions in the merger agreement). 

 

Does it make sense to receive cash at $7.65?  Sprint is trading under $7.00.