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

[mhammett]

Zayo, EarthLink, etc. Would all be better choices.

[caspar347]

The absolutely worst thing Sprint could do is get tied up with an entity like CenturyLink or Windstream with significant landline operations. Tons of debt supporting a dying product.

Meh. I don't really know enough about the situation to comment, but from what I've seen Windstream has a decent shot at sticking around if they can hurry up with their FTTH. They're also about $10 cheaper a month than the other ISPs here at all speed tiers with VDSL2.

[mhammett]

Landline operations are expensive to maintain and are debt heavy.

[bigsnake49]

Zayo, EarthLink, etc. Would all be better choices.

Zayo definitely. I wanted Sprint to buy tw telecom or level 3 for their fiber loops. 

[bucdenny]

Zayo definitely. I wanted Sprint to buy tw telecom or level 3 for their fiber loops. 

 

Level 3 for maybe $10-$20 billion.  Mr Son has the money.

[Johnner1999]

Maybe a crazy thought, but why compete to the bottom by out pricing lower than tmo.

 

Why not go aggressive on price with AT&T - which should still leave some margin.

 

Either way I think it's going to be a fun fun ride! Especially with Marcelo and Son on a mission.

[centermedic]

Maybe a crazy thought, but why compete to the bottom by out pricing lower than tmo.

 

Why not go aggressive on price with AT&T - which should still leave some margin.

 

Either way I think it's going to be a fun fun ride! Especially with Marcelo and Son on a mission.

This a thousand times. I have been called crazy before but I still think Sprint can compete head on with AT&T. With the right pricing/value I think they should go right after AT&T. Let T-Mo become the bottom feeder.

Level 3 for maybe $10-$20 billion.  Mr Son has the money.

I think Level Three would be a great acquisition!

[bigsnake49]

This a thousand times. I have been called crazy before but I still think Sprint can compete head on with AT&T. With the right pricing/value I think they should go right after AT&T. Let T-Mo become the bottom feeder.

I think Level Three would be a great acquisition!

 

They don't need Level 3 backbone, they need their metro fiber loops

Edited August 11, 2014 by bigsnake49

[jamesinclair]

 

Similar thing happened to TV set manufacturers. Vizio, and other dodgy brands, showed up with rock bottom pricing, and after a couple of years of price cuts put the screws on TV makers like Sony and other higher priced brands, some of whom are barely surviving today. 

 

 

Uh what?

 

Vizeio is a high quality brand that brought low prixes with good products. Read their reviews.. Dodgy? Please.

 

Youve just destroyed your point. Vizio came in and proved that they could make a good profit with low prices and high quality. It was a huge gain for the consumer. I think theyre now #1 or #2 TV seller in the US.

[centermedic]

They don't need Level 3 backbone, they need their metro fiber loops

Exactly.

[mhammett]

Uh what?

 

Vizeio is a high quality brand that brought low prixes with good products. Read their reviews.. Dodgy? Please.

 

Youve just destroyed your point. Vizio came in and proved that they could make a good profit with low prices and high quality. It was a huge gain for the consumer. I think theyre now #1 or #2 TV seller in the US.

Vizio is garbage.

They don't need Level 3 backbone, they need their metro fiber loops

Level 3 does bring with it tremendous debt. Sprint keeps their network map fairly well guarded, but I'd assume the L (3) long haul network to be largely complimentary and more capable. They'd be better off with someone smaller and with more of an FTTT presence. TWTC would have been great.

[jamesinclair]

Vizio is garbage.

 

 

Care to back that up?

[bigsnake49]

Vizio is garbage.

Level 3 does bring with it tremendous debt. Sprint keeps their network map fairly well guarded, but I'd assume the L (3) long haul network to be largely complimentary and more capable. They'd be better off with someone smaller and with more of an FTTT presence. TWTC would have been great.

Yeah, Level 3 does bring a lot of debt. twtelecom had a fair amount of metro fiber, but nowhere near the ILECs. The reason I have been proposing acquiring somebody with fiber is that if Dish and Sprint start offering fixed broadband OTT video and VOD, they will need a lot of backhaul bandwidth. I am also thinking ahead to the use of Artemis' system to multiply the bandwidth delivered. The front haul for Artemis system will require prodigious amounts of bandwidth.

[jamisonshaw125]

http://www.fiercewireless.com/story/sprint-ceo-claure-takes-reins-great-expectations-and-challenges-ahead/2014-08-11

 

 

Just some more stuff about Claure and Sprint. Were they supposed to announce something today? I thought I read that on friday.

[S4GRU]

Uh what?

 

Vizeio is a high quality brand that brought low prixes with good products. Read their reviews.. Dodgy? Please.

 

Youve just destroyed your point. Vizio came in and proved that they could make a good profit with low prices and high quality. It was a huge gain for the consumer. I think theyre now #1 or #2 TV seller in the US.

As long as they don't drop prices below the profit floor, then competition is a good thing. I agree with that. Good for TV's and good for wireless.

 

But TV production is unique in the fact there are many ways to explore lowering production prices among Chinese and SE Asian vendors and manufacturers. If you guarantee enough units, you can drive these costs down to absurd levels. This is not a luxury that American wireless companies have. Their biggest costs are labor, and that is not really something they can lower.

 

Also, a TV manufacturer can take very low profit on their introductory lines, or even a loss, because they can spread that around all their lines, including upscale lines. A wireless provider doesn't have that luxury. If it drops prices below the profit floor for long, then providers either cut their expenses drastically (think capex in wireless) or go out of business.

 

Tmo and Sprint cannot cut capex where they are at now. They are in a Catch 22. And VZW and AT&T can sustain price cuts until the day Tmo and Sprint go out of business. Tmo and Sprint need to offer better value than VZW and ATT. Not try to compete all the way down on price to the point it hurts them in the long run. And Tmo is most vulnerable, because it doesn't currently have the backing of deep pockets.

 

I don't know where the line is that is too low. But it feels like it must be soon. Sprint and Tmo just barely were profitable before the last round of price cuts. Sprint only squeaked out a small profit from unsustainable tablet sales, and Tmo only had a profit because of a VZW spectrum purchase.

 

Both Sprint and Tmo will have to make major cuts in order try to be profitable on reducing margins. Whereas ATT and VZW margins are so fat, they can ride it out as Sprint and Tmo annihilate each other at the bottom.

 

Those who hold out hope that Tmo's subscriber numbers are growing need to remember these customers are coming to cheap plans that are just getting cheaper and cheaper. Bringing in less and less money per customer, while, capex demands are still high (700MHz, VoLTE, and widening to 15/20MHz channels, rural backhaul and buildout). And Tmo spends so much money per new customer to attract them, that it takes a year just to payoff the amount to get them. And then consider how many new Tmo customers are prepaid. They even brag about it.

 

If people really want strong competition to the duopoly, then we should be wanting Sprint and Tmo not to engage in a price war that will damage them both. We should want to pay the lowest price that keeps them financially healthy enough to compete. And I think that we are there, or maybe slightly beyond it.

 

McAdam and Stephenson were afraid of a Sprint/Tmo merger. They must be very pleased at what they are seeing now. They just got to find the best position to wait out the clock.

 

The Feds created the position, allowing the Duopoly to amass too much weight. Never once caring about competition until AT&T tried to purchase Tmo.

 

Now, the Feds just keep talking about competition, but all their efforts really just stymie the little guys from taking it to the Duopoly. The only way one of the small guys can make a dent in the big ones is if they have a wealthy backer who will just sit back and pay for the red ink to build a network that can fully compete and then fund operations for 8-10 years as they offer prices at a loss to slowly pick away at the Duopoly subscriber base.

 

And then that wealthy backer needs to steadily pour more and more money (at a loss) into his network to make sure it can handle all the new subscribers steadily coming from the Duopoly quarter after quarter. This is a tall order for any company to achieve, even with small profits. Impossible while losing money.

 

I don't even think Masa is prepared to carry Sprint for that long of time funding capex and operations for an unprofitable company with no guarantee of success and a Federal regulatory environment that feels like it has some folks working against him.

 

The best outcome for the American consumer in the long run is to allow Tmo and Sprint to charge prices that provide reasonable profits and returns. It will allow them to make debt payments, borrow more as needed, properly fund capex and possibly start to make in roads with the Duopoly over time.

 

Ridiculously cheap prices in the next few months will likely help the consumer in the short term, but will be very harmful to them a few years down the road as the minor two become less and less able to compete as they head down the road for bankruptcy. And both Sprint and Tmo will be waiting for the other to raise prices knowing that customers will jump ship to the other immediately.

 

Robert via Samsung Note 8.0 using Tapatalk Pro

[Johnner1999]

http://www.fiercewireless.com/story/sprint-ceo-claure-takes-reins-great-expectations-and-challenges-ahead/2014-08-11

 

 

Just some more stuff about Claure and Sprint. Were they supposed to announce something today? I thought I read that on friday.

Nothing offical I don't think.

 

But being his first day, I suspect a leaked email to employees any moment... ha.

[JeffDTD]

I don't even think Masa is prepared to carry Sprint for that long of time funding capex and operations for an unprofitable company with no guarantee of success and a Federal regulatory environment that feels like it has some folks working against him.

 

Robert via Samsung Note 8.0 using Tapatalk Pro

wise

 

I have the same concern. I dont expect Son is currently reaping anything close to what he expected from Sprint and I dont expect him to indefinitely fund sprint, especially if Softbank faces any other financial or business related sefbacks in its home turf. He bought a company sold to him as being on the cusp of a turnaround and hes now chairman of a company considered to be in a grim position

 

I dont think he would outright sell majority stake. But, if his turnaround efforts manage to raise the stock above $8.50,I could see him selling his ownership down significantly.

 

Sent from my VS980 4G using Tapatalk

[cletus]

I am eagerly waiting for changes to plans or framily structure. I can easily see myself coming back to Sprint (from Ting) if they make some small tweaks.

[caspar347]

I am eagerly waiting for changes to plans or framily structure. I can easily see myself coming back to Sprint (from Ting) if they make some small tweaks.

If they make some minor changes to Framily (lowering required lines for max discount to 6; letting current customers combine without hassle) I may switch from my awesome ED1500.

[Johnner1999]

I am eagerly waiting for changes to plans or framily structure. I can easily see myself coming back to Sprint (from Ting) if they make some small tweaks.

I'm actually coming back...

[Johnner1999]

wise

 

I have the same concern. I dont expect Son is currently reaping anything close to what he expected from Sprint and I dont expect him to indefinitely fund sprint, especially if Softbank faces any other financial or business related sefbacks in its home turf. He bought a company sold to him as being on the cusp of a turnaround and hes now chairman of a company considered to be in a grim position

 

I dont think he would outright sell majority stake. But, if his turnaround efforts manage to raise the stock above $8.50,I could see him selling his ownership down significantly.

 

Sent from my VS980 4G using Tapatalk

I'd be curious if this wasn't Son's own doing. What are odds he was already in control of the board back when Dan was inches from buying metroPCS.

 

My logic being:

 

Dan had a plan to strengthen sprint for the cheap.

 

Son didn't agree and said something like hey I'll take my offer off the table if you buy metro. As son wanted tmo as well and the feds never would have agreed if sprint bought two competitors. ...

 

Yeah its a stretch.

[jbom]

Uh what?

 

Vizeio is a high quality brand that brought low prixes with good products. Read their reviews.. Dodgy? Please.

 

Youve just destroyed your point. Vizio came in and proved that they could make a good profit with low prices and high quality. It was a huge gain for the consumer. I think theyre now #1 or #2 TV seller in the US.

 

I meant to say when Vizio came out they were kind of low rent, ugly, etc... today of course they're nothing like they used to be

Edited August 11, 2014 by jbom

[lennyj17]

If they make some minor changes to Framily (lowering required lines for max discount to 6; letting current customers combine without hassle) I may switch from my awesome ED1500.

I'm planning to come back to my Sprint account (currently on Framily of 6 lines) I was gonna be the 7th to bring it to the 25$ per line. But was actually able to get Sprint to allow my aunts SERO+ plan to convert which has grown to cost her 70$ a month, she doesn't need Unlimited Data, the 1GB does her fine ( Wifi @ work and home)... Now we're all at 25$...

 

 

I don't have a problem with Framily (name needs changed though) basic premise, but it does need an overhaul. One thing Sprint needs to maintain the Simplicity of the plan... Roll everything into "Framily" eligible, that means Phones, Tablets, Netbooks, and Mifi.

 

Allow data to be shared on all tiers and all lines except lines with Unlimited buy-ups.

 

Abolish Contracts and Subsidies completely, win customer loyal with decent pricing and a quality network.

 

Allow Open Upgrade policy using Easy-Pay. This means a line can upgrade at anytime using Easy-Pay, as long as the previous device on the said line has been paid off in Full. Allow customers to pay as much as the want over the Minimum Easy-Pay amount to pay off their devices faster.

 

Better Device Selection, needs to have a comprehensive device selection to offer that covers all major OSs. For Sprint this means more Windows Phones ( they need Nokia's), and better selection of tablets.

 

Sprint place is to compete by being a solid Middle Ground experience "Verizon/ATT" like Network experience, with Reasonable (Non-Gouging) Simplistic Plan Pricing. No need to chase Bottom Feeder like T-MO does, leave them to TMO, who will bolt on TMO as soon as their network buckles under the weight of the Data Hogs. Which is why I feel like Sprint avoided another Nextel-like disaster with TMO over-loading its network with Bottom-Feeders only to have the Network go to hell once Sprint finalizes the merger, then collapses under its own weight. Sound Familiar?

 

As I said earlier as far as gaining scale, and building network, Sprint/Masa needs to focus on eating up the CCA partners as they wont be around long. Verizon/ATT will start eating these guys one by one once the M&A climate is back in their favor. If I was Sprint I would use USCC to kick things off, then go after C-Spire (who wants eaten), then Ntelos, and so on and so forth.

[Johnner1999]

good news bite...

 

http://www.bloomberg.com/video/is-sprint-s-new-ceo-up-to-the-challenges-he-faces-o2B59~ywQeCHFh~x8yPT1A.html

[jamesinclair]

I meant to say when Vizio came out they were kind of low rent, ugly, etc... today of course they're nothing like they used to be

 

That may be true (I dont know), but theyre still cheaper today than the long-standing competitors, and they are of similar quality.

 

However, as Robert pointed out, it's not the same, aside from the fact that disruptive entrants into an industryr esult in lower prices.