Jump to content

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


thepowerofdonuts

Recommended Posts

This bid isn't serious unless it can get to $40 a share. Otherwise DT can make more money with SoftBank and they can also make money on a higher termination fee if SoftBank goes on the wild goose chase to get this approved, which it likely won't.

I don't think they need to match $40 necessarily. They do need to bid competitively. Hypothetically if they bid $39 on the entire 66.7% DT stake (remember their initial offer only covered 10% less than this) they'd be withing about $800 million of Softbank's bid. There is value in ease of regulatory approval. There is also fairly significant risk to DT if a merger fails. Two of the three largest wireless carriers have tried to buy you and failed. Verizon won't be able to even if they wanted. Dish? Maybe.

 

Now with an absence of a competitive bidding process, Iliad loses quite a bit of incentive to alter their bid.  That said, 1) I don't think Iliad can come up with the financing for such a bid and 2) If Masa is really interested he can go higher.

Link to comment
Share on other sites

I still have a question that maybe Neil can answer. How many of T-Mobile's sites would actually improve Sprint's coverage.

 

*sighs* Mou...

 

As far as T-Mobile sites that improve Sprint coverage, there's a significant amount of them that would. The majority of Sprint sites are co-located with T-Mobile or too close to T-Mobile sites to be of any use, but there are a significant number of T-Mobile sites (~20K or so) that exist in areas that Sprint has much thinner to no coverage. These extra sites are the reason why T-Mobile's network is technically "bigger" than Sprint's, in terms of overall coverage (285-290 million people covered under T-Mobile's network vs 260 million people covered under Sprint's network).

Link to comment
Share on other sites

These extra sites are the reason why T-Mobile's network is technically "bigger" than Sprint's, in terms of overall coverage (285-290 million people covered under T-Mobile's network vs 260 million people covered under Sprint's network).

 

Sprint covers 282 Million with EVDO coverage as of December 31st of last year according to broadbandmap.gov

 

T-Mobile covers 245 Million with HSPA coverage as of December 31st. I know that T-Mobile's network is larger by pure square milage but in terms of 3G coverage or what's classified as broadband by the FCC, Sprint covers more people (in broadband).

Link to comment
Share on other sites

Sprint covers 282 Million with EVDO coverage as of December 31st of last year according to broadbandmap.gov

 

T-Mobile covers 245 Million with HSPA coverage as of December 31st. I know that T-Mobile's network is larger by pure square milage but in terms of 3G coverage or what's classified as broadband by the FCC, Sprint covers more people (in broadband).

I specifically did not mention technologies. He asked about coverage, with no technological qualifiers. In terms of raw coverage, T-Mobile's native network is larger. There are some areas Sprint covers that T-Mobile does not, but T-Mobile has much more geography and population covered than Sprint, overall.

sprinttmo-ov-big.jpg

  • Like 1
Link to comment
Share on other sites

I specifically did not mention technologies. He asked about coverage, with no technological qualifiers. In terms of raw coverage, T-Mobile's native network is larger. There are some areas Sprint covers that T-Mobile does not, but T-Mobile has much more geography and population covered than Sprint, overall.

 

 

And my comment was in reference to the 260 Million figure that you mentioned. I wasn't disagreeing with any of what you said besides that.

  • Like 1
Link to comment
Share on other sites

Through the earning press release, Hesse indicated Sprint is working to re-price framily.

 

It will be a part of the strategy to prevent other buyer to get T-MOBILE.

 

I think Softbank will turn Sprint to aggressively compete for new subscribers from this summer with new pricing.

1, it will bring Sprint to net sub addition in order to bring down fixed cost on each user

2, if other buyers consider to buy TMOBILE, they need think about how to compete the Sprint which is turned to the same "mad-dog" mode in pricing and backed by much more money from Softbank. Dish won't load itself tons of debt if Charlie didn't see the hope to make profit in next 2 years.

3, Lock Tmobile in the current status, and no one will go to Tmobile easily for spectrum hosting deal. Well it will bring Dish spectrum to Sprint.

 

 

It will give FCC more excuse not to approve if FCC won't be bought by bribes like they approved those VERIZON / ATT merger deals in last 10 years. However, it won't be worse than current status quo. Sprint can succeed alone. Softbank didn't spend more than 20Billion to buy sprint in order to buy Tmobile to survive. They know they have more options than the merge and all those options can lead to success. The operation and management on the resource on their hands are far more critical than if they can get TMOBILE.

Link to comment
Share on other sites

Link to comment
Share on other sites

Man I would have loved to be a fly on the wall in that meeting that led to that decision.

 

Commence speculation posts in 3..2..1...

New rumour:  I will buy T-Mobile.

  • Like 8
Link to comment
Share on other sites

Looks like the end of the road:  http://online.wsj.com/articles/sprint-abandoning-pursuit-of-t-mobile-1407279448

 

Masa, now it's time to take Sprint to the next level on your own!

 

Robert

 

Thanks Neal for the heads up!

The WSJ says they have a "Source" that claims the Sprint-Tmobile deal is not going to happen because of the steep regulator hurdles.   I woudl like to see Sprint take the money and bid for adequate 600 spectrum.  AND, I would bet that Charlie& Dish are coming on board now.

  • Like 2
Link to comment
Share on other sites

WSJ is reporting that Sprint/T-Mobile is dead.

 

 

It's good news. Sprint should focus on the resources they have on hand to win the game. They have the resources in place.

  • Like 1
Link to comment
Share on other sites

I LIKE Dan Hesse! He's done a great job. WTH was he supposed to do with a non-functional network? It was HIS administration that put an end to iDEN, and built a plan to get Sprint out of the gutter via Network Vision.

 

It was the Hesse Administration that had stabilised Sprint. Has anyone noticed that Sprint has not spend any SoftBank money yet?

 

We would still be at a good pace without SoftBank.

Edited by EmeraldReporter
  • Like 5
Link to comment
Share on other sites

Guest
This topic is now closed to further replies.

×
×
  • Create New...