WSJ: Sprint looking at T-Mobile purchase

[LuisOlachea]

 

• The WSJ reports Sprint (S +5%) could make a bid for T-Mobile USA (TMUS +7.8%) in 1H14. Both Sprint and T-Mobile shares have spiked in response.

• The FCC would doubtlessly give close scrutiny to a deal that would reduce the number of nationwide U.S. carriers to three from four. But Sprint majority owner SoftBank (SFTBF) hasn't been scared to make big bets.

http://seekingalpha.com/currents/post/1464871?source=email_rt_mc_readmore

 

 

 

I knew Son had deep pockets, but DAMN! He is on a take over mission.

[Fraydog]

http://vrge.co/1cGVOf4

 

http://online.wsj.com/news/articles/SB10001424052702303293604579256561000513396

 

Sprint Corp. is working toward a possible bid for rival T-Mobile US Inc., people familiar with the matter said, setting the stage for a giant telecom merger that if permitted by regulators would leave the U.S. wireless market dominated by three big companies.

 

Sprint is studying regulatory concerns and could launch a bid in the first half of next year, the people said. A deal could be worth more than $20 billion, depending on the size...

And here...we...go...

 

 

[GoBigRed79]

Take this for what it is worth.  Both stocks blowing up in after hours. 

 

http://bgr.com/2013/12/13/sprint-t-mobile-merger/

[el1117]

My first thought. Awesome! Now, let me really think about it....

 

Sent from my SPH-L710 using Tapatalk

 

 

[LuisOlachea]

Right there with you. I would wonder what Son would want to do if he has his money split on CDMA and GSM. Would that mean that Sprint Network roll out would slow? 

[dmchssc]

I highly doubt that this will fly by the DoJ and FCC. It seems pretty clear that four national carriers is the goal, and the benefits of a merger of Sprint and T-Mobile would certainly not outweigh the costs of losing that competition.

 

There isn't much synergy between the two at all. There is literally no band+technology overlap, and their combined spectrum resources would be absurd and extremely tilted towards high frequencies. The only possible case here would be that having a carrier with 80 million customers instead of two with around half each would give more pressure on the big two.

 

I suspect, however, that this would occur more through S+TM price increases rather than ATT/VZ price decreases.

[mmark27]

Just came to post the same thing.  This is interesting, but does it make sense with different wireless technologies?!  That's always been my criticism. 

[Paynefanbro]

This might actually be a possibilty after all. Masayoshi is going to swallow up the competition at all costs. He had his eye on T-Mobile and it seems he is illing to go after them, after all.

[Fraydog]

http://s4gru.com/index.php?/topic/5189-wsj-sprint-looking-at-t-mobile-purchase/

[Fraydog]

http://s4gru.com/index.php?/topic/5189-wsj-sprint-looking-at-t-mobile-purchase/

 

Here's a link for non-sponsor discussion... 

[digiblur]

Nextel all over again...  besides maybe the N5.

[kyle_4thousand]

Wow. I can't imagine- If this actually makes it through regulators Sprint will surely be top dog within a year. 

I don't think the GSM to CDMA difference is much of an important factor looking forward. TMO purchased Metro PCS, a CDMA carrier. Plus LTE technologies are pretty similar among carriers with the exception of spectrum its deployed on and TD / FD LTE.

 

At least that's my take.

[UndeadNexus]

O_O this is big. I sort of knew this would happen at some point. But as mmark27 said, the different technologies might be a bit of a problem. Perhaps they can run both networks separately like T-Mo did with Metro PCS? I'd like to avoid another Nextel fiasco again.

 

Sent from my Nexus 5 using Tapatalk

 

 

[dedub]

If they really plan to move on tmo, I would not be surprised to see future sprint phones setup just like nexus5.

[Paynefanbro]

This might actually be a possibilty after all. Masayoshi is going to swallow up the competition at all costs. He had his eye on T-Mobile and it seems he is willing to go after them, after all.

 

Maybe they'll run as separate brands still and when the time comes for VoLTE, they'll merge under one brand. Or maybe they'll offer a series of Nexus 5-like devices that have both CDMA and GSM radios and you choose which network you would like to on. However, having all LTE bands to use would be awesome.

[Fraydog]

As long as the Network Vision infrastructure is maintained, I don't think CDMA will go away for current Sprint customers anytime soon. This isn't as far fetched as it seems... Network Vision infrastructure will be able to support legacy T-Mobile tech as well, IIRC. I think the technical aspect isn't the hardest part of this. 

 

The competitive aspect per the FCC? You better believe that will be examined.

[utiz4321]

I hope this doesn't go through. The US wireless market would be very uncompetitive I think at three major carriers. Most European countries have four and much smaller populations (although much smaller geographic areas so returns to scale aren't as high).

[GoBigRed79]

As long as the Network Vision infrastructure is maintained, I don't think CDMA will go away for current Sprint customers anytime soon. This isn't as far fetched as it seems... Network Vision infrastructure will be able to support legacy T-Mobile tech as well, IIRC. I think the technical aspect isn't the hardest part of this. 

 

The competitive aspect per the FCC? You better believe that will be examined.

 

Yup, I remember reading that the network vision infrastructure would make a merger like this possible.  The network differences are really not the big problem here.  And I guess this is coming up now as the NV upgrades would be close to complete by the time something like this would close.  Sprint has wanted to do this for a while, but my guess is they had to get to a certain point in the NV upgrade to try and pull it off. 

[LuisOlachea]

I highly doubt that this will fly by the DoJ and FCC. It seems pretty clear that four national carriers is the goal, and the benefits of a merger of Sprint and T-Mobile would certainly not outweigh the costs of losing that competition. There isn't much synergy between the two at all. There is literally no band+technology overlap, and their combined spectrum resources would be absurd and extremely tilted towards high frequencies. The only possible case here would be that having a carrier with 80 million customers instead of two with around half each would give more pressure on the big two. I suspect, however, that this would occur more through S+TM price increases rather than ATT/VZ price decreases.

 

 

I agree. He might want to run them as two separate companies. But then that would be counterproductive...

[el_oh_el88]

As a recent T-Mobile converter, please, no. God no. Im finally able to actually use my connection. I think Sprint should give it a couple years to get the network vision plan fleshed out before making any power moves

[Paynefanbro]

As a recent T-Mobile converter, please, no. God no. Im finally able to actually use my connection. I think Sprint should give it a couple years to get the network vision plan fleshed out before making any power moves

 

I don't see how this is relevant. Your network experience doesn't instantly change if they merge.

[el_oh_el88]

I don't see how this is relevant. Your network experience doesn't instantly change if they merge.

You are indeed correct. Likely nothing will change in the short term. But I believe tmobile's pricing to be better than Sprint's for now. And pricing would likely be the first thing to change in a merger I believe.

Once network vision is done, Sprint will blow them out the water on data coverage though

[sbolen]

I'd much rather Sprint take the $20 billion they could potentially spend on a merger and just put T-Mobile out of business by accelerating the NV plan. Get me all three glorious bands of LTE (Spark? Still feels odd saying that) and blanket the country.

 

People will see a difference between VZW and AT&T. And they won't be switching to T-Mobile for the off-chance they travel out of the country and can roam on a paltry amount of free 3G/LTE.

 

Also, maybe get some better commercials.

[tybo31316]

Sprint needs to focus on finishing Network Vision first. Then after the network vision is complete they can go out the T Mobile. Until then they shouldn't do anything

[transitwatch889]

I have no words for the thought process or how possible this will be going forward but just reading into it they're going to see what the powers that be have to say before they even the side of the going to move forward or not!