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

[marioc21]

OK, now that the deal is close to closing, what has Sprint gotten out of the deal? $5B which is not enough to finance the Clearwire deal and payoff Clearwire debt. So in essence, Sprint is not that much better off financially. Asset wise, yes, but debt wise no. I am slightly dissapointed. Will Softbank be able to finance further acquisitions?

 

I just don't see how Sprint will be able to finance $16B in capex from operations.  I guess I'm from Missouri. Show me!

 

They're banking a lot on "synergies". Especially lower equipment costs for handsets as well as network equipment by buying for both Japan and the U.S. operations. 

 

The 2nd quarter earnings report will be interesting to see on July 30.  

[maximus1987/lou99]

They're banking a lot on "synergies". Especially lower equipment costs for handsets as well as network equipment by buying for both Japan and the U.S. operations.

 

The 2nd quarter earnings report will be interesting to see on July 30.

The 2nd report will blow. They predicted 30-40% Nextel recapture.

[Deval]

Would the cost of additional backhaul possibly cause Sprint to transition to Sprintlink?

What timeframe would that be?

 

Sprint didn't transition SprintLink, that still exists. Not sure what you're asking?

[maximus1987/lou99]

Sprint didn't transition SprintLink, that still exists. Not sure what you're asking?

Would Sprint ever transition its cell backhaul to Sprintlink?

[bigsnake49]

They're banking a lot on "synergies". Especially lower equipment costs for handsets as well as network equipment by buying for both Japan and the U.S. operations. 

 

The 2nd quarter earnings report will be interesting to see on July 30.  

 

There might be some savings, a billion here and a billion there, but I don't see $8B for this year, let alone for next year as well. I will be watching the quarterly earnings.

[maximus1987/lou99]

There might be some savings, a billion here and a billion there, but I don't see $8B for this year, let alone for next year as well. I will be watching the quarterly earnings.

"Synergies" is a buzzword analysts like to hear so Softbank obliged.

How much do you think vendor's margins are? Since ZTE and Huawei are out, Softy HAS to pick Samsung + Europeans for both Japan and America to get discounts and the afore four know this.

 

The $8bil/ year is OBVIOUSLY from Softbank.

 

It's gonna be another year until Sprint NV is done. Of course they're not gonna see huge revenue spike.

[bigsnake49]

"Synergies" is a buzzword analysts like to hear so Softbank obliged. The $8bil/ year is OBVIOUSLY from Softbank. It's gonna be another year until Sprint NV is done. Of course they're not gonna see huge revenue spike.

 

Yes, analysts love to hear that, but synergies are the hardest to quantify and of course the hardest to realize.

[maximus1987/lou99]

Yes, analysts love to hear that, but synergies are the hardest to quantify and of course the hardest to realize.

Like lemmings, they'd jump off a cliff if you told them they'd find synergies there.

[bigsnake49]

Like lemmings, they'd jump off a cliff if you told them they'd find synergies there.

 

Yep, and of course nobody ever follows up to measure and verify those promised synergies.

[Deval]

Would Sprint ever transition its cell backhaul to Sprintlink?

 

They do that now. That's one of the coolest perks of being a Sprint corporate customer, the organic hooks into the MPLS core. Essentially, from a network standpoint, the wireless phones and wireline routers and equipment ride the same core, so they see each other as endpoints.

 

http://convergence.sprint.com/mobileintegration.aspx

 

All of Sprint's wireless traffic travels over the SL core, and only hands off to local sites where Sprint doesn't have last-mile service. For example, an office I've visited has a direct hook from the base station into the SL core.

[WiWavelength]

Would Sprint ever transition its cell backhaul to Sprintlink?

 

SprintLink is long haul fiber.  Tapping into that at each cell site would be like landing a 747 in my front yard to pick me up.  No, I have to get into my car and drive to the nearest major airport first, and that is akin to the metro fiber backhaul that is run to each cell site.  Then, the backhaul traffic is transferred to SprintLink for the long haul.

 

AJ

[maximus1987/lou99]

They do that now. That's one of the coolest perks of being a Sprint corporate customer, the organic hooks into the MPLS core. Essentially, from a network standpoint, the wireless phones and wireline routers and equipment ride the same core, so they see each other as endpoints.

 

http://convergence.sprint.com/mobileintegration.aspx

 

All of Sprint's wireless traffic travels over the SL core, and only hands off to local sites where Sprint doesn't have last-mile service. For example, an office I've visited has a direct hook from the base station into the SL core.

In that case, I meant the last-mile service. Is it possible it might be cost effective for Sprint in the future to do its own last-mile service?

 

I'm not even talking about then selling it to other guys on the same tower but simply because of its own backhaul costs. SINCE (I believe) Softy's only option for differentiation is TD-LTE to 150mil+, their backhaul needs will skyrocket.

[marioc21]

"Synergies" is a buzzword analysts like to hear so Softbank obliged. How much do you think vendor's margins are? Since ZTE and Huawei are out, Softy HAS to pick Samsung + Europeans for both Japan and America to get discounts and the afore four know this. The $8bil/ year is OBVIOUSLY from Softbank. It's gonna be another year until Sprint NV is done. Of course they're not gonna see huge revenue spike.

 

No necessarily.  The last three quarters Sprint has spent approximately $1.4 billion, $1.9 billion and $1.8 billion on CapEx.  That's rate of about $6 - $7 billion per year in CapEx.  Now that the Nextel bleeding is done with they might be able to increase revenue enough to cover the additional $1-$2 a year they need.  If not then Softbank might have to infuse some capital into Sprint.  But it won't be $16 billion. 

[Deval]

In that case, I meant the last-mile service. Is it possible it might be cost effective for Sprint in the future to do its own last-mile service?

 

I'm not even talking about then selling it to other guys on the same tower but simply because of its own backhaul costs. SINCE (I believe) Softy's only option for differentiation is TD-LTE to 150mil+, their backhaul needs will skyrocket.

 

I doubt it, putting in fiber on every city block in NYC would cost more than it is worth. It's cheaper to lease fiber.

[Paynefanbro]

I doubt it, putting in fiber on every city block in NYC would cost more than it is worth. It's cheaper to lease fiber.

 

Although Mayor Bloomberg already pushed an initiative to have every NYC block covered with fiber by 2020. He has Optimum, Verizon, and TWC on their toes with this one. My school in SoHo is only now getting FiOS and Verizon is starting to deploy fiber in my area, or at least I think so because I am seeing more Verizon trucks in my neighborhood. Optimum has LightPath available and they have 101Mbps service at my home already, where they can run the fiber into your business or home rather than the coaxial cable.

[Deval]

Although Mayor Bloomberg already pushed an initiative to have every NYC block covered with fiber by 2020. He has Optimum, Verizon, and TWC on their toes with this one. My school in SoHo is only now getting FiOS and Verizon is starting to deploy fiber in my area, or at least I think so because I am seeing more Verizon trucks in my neighborhood. Optimum has LightPath available and they have 101Mbps service at my home already, where they can run the fiber into your business or home rather than the coaxial cable.

 

Yeah too bad in places like Queens, where Verizon stopped putting in FiOS, and the buildings won't allow it.

[Mercurial1]

The 2nd report will blow. They predicted 30-40% Nextel recapture.

Hopefully this will be offset by some of those us cellular customers in the midwest!

 

Sent from my SPH-L900 using Tapatalk 2

 

 

[bigsnake49]

No necessarily.  The last three quarters Sprint has spent approximately $1.4 billion, $1.9 billion and $1.8 billion on CapEx.  That's rate of about $6 - $7 billion per year in CapEx.  Now that the Nextel bleeding is done with they might be able to increase revenue enough to cover the additional $1-$2 a year they need.  If not then Softbank might have to infuse some capital into Sprint.  But it won't be $16 billion. 

 

That was borrowed money that Sprint was spending.

[maximus1987/lou99]

That was borrowed money that Sprint was spending.

Welcome to telecom.

[jamesinclair]

Welcome to telecom.

 

Welcome to any business.

[maximus1987/lou99]

That was borrowed money that Sprint was spending.

I see your point now: the $6-7bil per year Sprint has been spending is borrowed money and they can't keep borrowing $6-7bil a year at reasonable rates.

[bigsnake49]

I see your point now: the $6-7bil per year Sprint has been spending is borrowed money and they can't keep borrowing $6-7bil a year at reasonable rates.

 Yes, it was financed by the vendors themselves.

[cletus]

I see your point now: the $6-7bil per year Sprint has been spending is borrowed money and they can't keep borrowing $6-7bil a year at reasonable rates.

Actually, they can keep borrowing at even better rates than any other US telecom now. This is due to softbank being able to borrow on the Japanese bond market at EXTREMELY favorable rates. Even with their recent downgrade to junk status they still come out ahead on any borrowed monies than the competition. 

[DaQue]

Actually, they can keep borrowing at even better rates than any other US telecom now. This is due to softbank being able to borrow on the Japanese bond market at EXTREMELY favorable rates. Even with their recent downgrade to junk status they still come out ahead on any borrowed monies than the competition. 

They said the cap expend will come from Sprint not Softbank.

[DaQue]

About time to close this and and the Dish buy out threads and open a  post Softbank buyout thread I think.