Jump to content

Sprint Reportedly Bowing Out of T-Mobile Bid (was "Sprint offer" and "Iliad" threads)


thepowerofdonuts

Recommended Posts

And that would be a risky investment with no guaranteed return. Sure, Sprint could theoretically throw the $30 billion at CAPEX instead to expand the network greatly. But what if that would attract away from VZW, AT&T, and T-Mobile only an additional three million subs? Great, Sprint just spent $10,000 per sub to acquire them. That would be a poor return on the investment and might be enough finally to sink Sprint for good. Thus, you can see why Sprint wants the scale automatically gained from T-Mobile's 40 million subs.

 

AJ

Someone needs to mash that wash rinse repeat cycle of the Fail to Plan is a Plan to Fail.

 

The plan to continue to give away tablets with free data plans to fluff up the numbers is working very well. ;) Samsung loves it!

Link to comment
Share on other sites

Masa Son is wasting his time. The regulators (unless you are comcast) will not approve this merger. The merger will not go through, the FCC will lift up the 600mhz spectrum screen, and Verizon alone with Att will grab it all.

  • Like 1
Link to comment
Share on other sites

Masa Son is wasting his time. The regulators (unless you are comcast) will not approve this merger. The merger will not go through, the FCC will lift up the 600mhz spectrum screen, and Verizon alone with Att will grab it all.

I don't think Masa would do something that wastes his time. In fact, I think he's the exact opposite of that.

 

Edit: sorry, going to edit that post. I agree with you that regulators might not approve this merger, but masa being a who he is has to at least try, right? If this is something he feels will benefit the company, and hopefully us...then he will do it.

 

 

Sent from my iPhone 5s using Tapatalk

Link to comment
Share on other sites

Someone needs to mash that wash rinse repeat cycle of the Fail to Plan is a Plan to Fail.

 

Well, Sprint "fails" at nearly everything it does.  Is Sprint practically cursed?  Or maybe Sprint just lacks the scale to force its initiatives to work.

 

What you guys also need to realize is that any buyout of/investment in T-Mobile would be heavily financed.  That is not difficult to come by because the financiers recognize that a Sprint-T-Mobile would receive an immediate combined revenue benefit.

 

Now, instead, try getting equivalent financing for an organic buildout that has no promise of return on investment, and remember that Sprint has been a floundering company financially for many years.  Good luck.

 

AJ

  • Like 3
Link to comment
Share on other sites

Well, Sprint "fails" at nearly everything it does. Is Sprint practically cursed? Or maybe Sprint just lacks the scale to force its initiatives to work.

Not everything, they are good at a few things.. (stares at spectrum analyzer, only sees multiple LTE channels on 700mhz and AWS from the other 3 carriers in Sprint launched LTE market)

 

Let me get back to you on those things ;)

  • Like 1
Link to comment
Share on other sites

To expand on AJ's point... We do not have four national competitors. We have two national competitors and two primarily urban ones.

 

I'm skeptical about many elements of a merger, but I'm certain of where this might end if nothing happens. That place isn't good.

  • Like 2
Link to comment
Share on other sites

Not everything, they are good at a few things.. (stares at spectrum analyzer, only sees multiple LTE channels on 700mhz and AWS from the other 3 carriers in Sprint launched LTE market)

 

Let me get back to you on those things ;)

 

Whether or not you intended it, you just supported my point.  VZW and AT&T both have scale.  T-Mobile does not, and that is why its "4G" deployment is available in urban islands but has long been limited to that archipelago.

 

AJ

Link to comment
Share on other sites

To expand on AJ's point... We do not have four national competitors. We have two national competitors and two primarily urban ones.

 

It is like SEC basketball.  Kentucky, Florida, and, uh, everybody else.  Sorry, Missouri, you are not on par with the big boys.

 

AJ

Link to comment
Share on other sites

Maybe Masa Son can use his large billfold to bribe those government officials just like the large two do. Could get things going in Sprints favor. But a sprint/Tmobile merger would have to focus on coverage expansion, getting LTE to every site ATT/Verizon has. Beat them on the coverage, plus claim the fastest. Use microwave backhaul until Fiber arrives and recycle the temporary microwave dishes during rollout.

Link to comment
Share on other sites

It is like SEC basketball. Kentucky, Florida, and, uh, everybody else. Sorry, Missouri, you are not on par with the big boys.

 

AJ

If T-Mobile is Missouri, then Sprint would be Tennessee. Capable of greatness, but not getting there very often.

 

Sorry, I had to go there. :)

 

Who is John Legere most like? Lane Kiffin.

  • Like 3
Link to comment
Share on other sites

Who is John Legere most like? Lane Kiffin.

 

Pete Carroll.  He acts too young and "rah rah" for his age.

 

AJ

  • Like 1
Link to comment
Share on other sites

If a merged entity mouth-pieced by the miami-vice harpy were to cause the public to suddenly see pink and overlook the obvious issues, its a sad testament of the buying publics' foolishness and a phenomenal investor play.

 

Sent from my SM-N900V using Tapatalk

  • Like 1
Link to comment
Share on other sites

Son is so wealthy, the risk of losing 1B is well worth the reward of a merged company in his eyes. Betting 1B on a play that could be wildly profitable is equivalent to one of us taking, oh, say 2% of what we're worth to a casino.  And whats to lose?  Well, if his dreams of a merged company don't play out, Sprint's spectrum holdings and potential still make it valuable enough to dump, perhaps leaving him with little or no loss. There is another billionaire out there with hoards of liquidity just dying to make a play... 

 

 

Well, it's a calculated risk-reward.

 

If the merger is approved, cha-ching, guaranteed profits for decades to come in the grande finale of wireless consolidation in the United States.  Decades of 40+% margins will shower Son with billions.

 

If not, he eats $1 billion, probably learns a lot on how T-Mobile's management team functions, tries to copy that with Sprint... life goes on with T-Mobile and Sprint making 20-25% margins and dragging AT&T and VZN down to 30-40% margins over time.

 

 

Should be interesting to watch, either way.

  • Like 1
Link to comment
Share on other sites

Whether or not you intended it, you just supported my point.  VZW and AT&T both have scale.  T-Mobile does not, and that is why its "4G" deployment is available in urban islands but has long been limited to that archipelago.

 

AJ

 

Hey now, in one year from now, they are going to have 300 million pops covered with 4G LTE (scratches head).

 

I have no idea how they are going to do it... but it will be interesting to see if they can pull it off.  Given their previous track record, it seems likely that they can pull it off.

  • Like 1
Link to comment
Share on other sites

http://www.washingtonpost.com/blogs/the-switch/wp/2014/06/05/analyst-a-sprint-and-t-mobile-merger-has-a-10-percent-chance-of-approval/

 

 

Less than 10% chance of the merger being approved? Looks like Masa is going to have to do this the difficult way and sprint and tmobile are just going to be fighting back and forth for the next few years while ATT and Verizon continue on their rampage to take over the world. 

Link to comment
Share on other sites

If a merged entity mouth-pieced by the miami-vice harpy were to cause the public to suddenly see pink and overlook the obvious issues, its a sad testament of the buying publics' foolishness and a phenomenal investor play.

 

Sent from my SM-N900V using Tapatalk

Get used to it. For better or worse, he and T-Mobile are seen as the innovators. He is reason no 1 that a merger will be approved (with spectrum concessions).

Link to comment
Share on other sites

http://www.washingtonpost.com/blogs/the-switch/wp/2014/06/05/analyst-a-sprint-and-t-mobile-merger-has-a-10-percent-chance-of-approval/

 

 

Less than 10% chance of the merger being approved? Looks like Masa is going to have to do this the difficult way and sprint and tmobile are just going to be fighting back and forth for the next few years while ATT and Verizon continue on their rampage to take over the world. 

The merger will be approved. The DOJ might even sue and then the companies will have to make some spectrum concessions and the merger will close in about a year.

Edited by bigsnake49
Link to comment
Share on other sites

The merger will be approved. The DOJ might even sue and then the companies will have to make some spectrum concessions and the merger will close in about a year.

sprint-logo.jpg

 

Here we go....Even though the name won't stay. Maybe they should call it Legere Mobile Communications. Every person who signs up for a framily gets a free magenta phone cover.

  • Like 3
Link to comment
Share on other sites

Get used to it. For better or worse, he and T-Mobile are seen as the innovators. He is reason no 1 that a merger will be approved (with spectrum concessions).

 

Innovators or agitators?

 

AJ

Link to comment
Share on other sites

Innovators or agitators?

 

AJ

Perception is reality sometimes and right now they are seen as innovators by the general public. Plus they are seen as people that get things done whereas Sprint's management are seen as bumblers.

Edited by bigsnake49
Link to comment
Share on other sites

Get used to it. For better or worse, he and T-Mobile are seen as the innovators. He is reason no 1 that a merger will be approved (with spectrum concessions).

 

If I'm understanding this SEC document correctly 'he' has around 42 million reasons to actually want to be sh*t-canned after any buyout of TMUS:

 

http://www.sec.gov/Archives/edgar/data/1283699/000119312514157312/d630442ddef14a.htm#toc630442_17

 

Page 48. 

  • Like 1
Link to comment
Share on other sites

If I'm understanding this SEC document correctly 'he' has around 42 million reasons to actually want to be sh*t-canned after any buyout of TMUS:

 

http://www.sec.gov/Archives/edgar/data/1283699/000119312514157312/d630442ddef14a.htm#toc630442_17

 

Page 48. 

 

Yep, he does, I wonder how many million reasons they will give him to stay :)

Link to comment
Share on other sites

The coverage map is interesting. It's odd that for the spectrum map they include Sprint's WCS holdings which are soon to be in the hands of AT&T, but they neglect to include BRS/EBS. I guess that would turn the entire map purple.  :unsure:

  • Like 4
Link to comment
Share on other sites

Here is some metrics on what the combined Sprint/TMobile will look like:

 

http://www.fiercewireless.com/special-reports/what-would-combined-sprint-and-t-mobile-look

 

They shouldn't have included Sprint's WCS holdings in that first map, as those are being sold to AT&T. I know they currently still own it, but it does bump Sprint into that > 150 MHz bracket in some places on the map.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.

×
×
  • Create New...