Official Tmobile-Sprint merger discussion thread

[newyork4me]

Just now, Brad The Beast said:

If they could, why haven't they done it yet? I think that would be a good question to ask also.

It's a shockingly bad strategy that benefits nobody.  They should not.

Sprint has the ability to become the premier urban carrier at prices lower than the rest.  The money is in urban areas.  VZ and AT&T *need* the urban customers to subsidize their rural builds, so VZ & AT&T will compete on price to keep them.  This lowers prices for rural customers of theirs too.

Sprint trying to do coverage expansion without scale is a dumb idea..they have a mediocre network in urban areas and a poor network in rural areas and have no ability draw customers from the other carriers, reflecting rising prices for all.

[tyroned3222]

And Sprint just cut over $1 billion from ongoing OpEx...they have the money.  No matter how much you might try to deny it.  Sprint will be perfectly fine and thrive on their own.

I mean we can spin this to be really positive. Yes, the government will bail them out and restructuring for debt will keep happening. But how competitive does that make sprint? Customers are leaving almost 2/1. The adds this quarter came mostly from prepaid migrations they only gain roughly around 40k new adds. And some analysts are already predicting as soon as the merger is a no go that sprint cuts capex down between 2/3 billion no matter what sprint is saying And yes we can also say that they are owned by someone with 10 of billions of dollar if ya wanna throw that in as a positive

 

Its laugable to think that it's the DOJ's job to bail out a Japanese company that has tens of billions of dollars at their disposal.

 

 

 

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[newyork4me]

28 minutes ago, Tengen31 said:

Accept if Sprint doesn't do anything outside merger areas then people will continue to leave coverage is a big deal and why I support the merger. Plus the fact that I'm using the S9+: and still can't use VOLTE. Both of these things are becoming deal breakers and if the Merger fails and I don't see any signs I'll ever get to use VOLTE I will be switching carriers for good. Sprint can't afford for people to keep leaving.

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This is incorrect.  Cricket (pre AT&T) and MetroPCS (pre T-Mobile) show customers are willing to have lower price for reduced coverage.  Sprint will absolutely have a winning strategy by building the best network in urban areas.  They would be fools to chase coverage, and their management said that yesterday.

 

EDIT:  Likewise I-90 coverage.  They don't need it.  They can roam for that.  I don't think I've ever been on I-90 up there enough to justify not roaming...nor has probably 95% of my neighbors in Los Angeles.  I go to LA, Chicago, New York, Miami, San Antonio, Vegas, Dallas, etc.   And, I travel a lot internationally....jet-setting urban crowds want the best network where they actually go.

[Tengen31]

This is incorrect.  Cricket (pre AT&T) and MetroPCS (pre T-Mobile) show customers are willing to have lower price for reduced coverage.  Sprint will absolutely have a winning strategy by building the best network in urban areas.  They would be fools to chase coverage, and their management said that yesterday.
 
EDIT:  Likewise I-90 coverage.  They don't need it.  They can roam for that.  I don't think I've ever been on I-90 up there enough to justify not roaming...nor has probably 95% of my neighbors in Los Angeles.  I go to LA, Chicago, New York, Miami, San Antonio, Vegas, Dallas, etc.   And, I travel a lot internationally....jet-setting urban crowds want the best network where they actually go.

I have been there and plan to go again. I was tied to a att hotspot when I when I when their last year as they wouldn't unlocked my phone. Roaming is terrible idea.

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[Brad The Beast]

7 minutes ago, Tengen31 said:

They at least need to add coverage to i90 in South Dakota including mount Rushmore as everyone else covers that

They need to add coverage a lot of places lol

[Mr.Nuke]

We've got 7  or 8 reports between two threads right now which tells me either people are being overly sensitive and/or people need to tone it down. We'll be reviewing posts as we can, and vacations may be warranted but consider this a further warning to anyone from this point on.

[newyork4me]

4 minutes ago, Tengen31 said:

I have been there and plan to go again. I was tied to a att hotspot when I when I when their last year as they wouldn't unlocked my phone. Roaming is terrible idea.

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They do not need to do that to serve you as an individual--that's the problem with coverage-build mentality.   Rural builds are not as profitable.  Sprint needs to focus on profitable urban builds to attract the greatest numbers.

[Brad The Beast]

1 minute ago, newyork4me said:

They do not need to do that to serve you as an individual--that's the problem with coverage-build mentality.   Rural builds are not as profitable.  Sprint needs to focus on profitable urban builds to attract the greatest numbers.

In the long run, wouldn't roaming be more expensive?

[RedSpark]

21 minutes ago, newyork4me said:

No.  Because Sprint does not intend on retiring all their debt.  They'll reissue it...corporate notes are a little like credit cards.  Sure the full balance may come due every month ("mature"), but a whole lot of people let the vast majority of it roll over to the next month ("reissue a new corporate note").

And how long can Sprint keep that up for without sufficient free cash flow?

[Tengen31]

They do not need to do that to serve you as an individual--that's the problem with coverage-build mentality.   Rural builds are not as profitable.  Sprint needs to focus on profitable urban builds to attract the greatest numbers.

Just another reason to buy unlocked when using Sprint then you can switch when traveling. I'm thinking TMO on my next vacation

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[newyork4me]

Just now, RedSpark said:

And how long can Sprint keep that up for without sufficient free cash flow?

Where is the notion they don't have sufficient cash flow coming from?  They are significant generators of cash flow from operations. 

[tyroned3222]

Where is the notion they don't have sufficient cash flow coming from?  They are significant generators of cash flow from operations. 

You gotta convince me on this one, cause after all the gains quarter after quarter for tmo they only post about 618 million free cash flow which is pennies compared to what Verizon and att make


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[newyork4me]

14 minutes ago, tyroned3222 said:

I mean we can spin this to be really positive. Yes, the government will bail them out and restructuring for debt will keep happening. But how competitive does that make sprint? Customers are leaving almost 2/1. The adds this quarter came mostly from prepaid migrations they only gain roughly around 40k new adds. And some analysts are already predicting as soon as the merger is a no go that sprint cuts capex down between 2/3 billion no matter what sprint is saying And yes we can also say that they are owned by someone with 10 of billions of dollar if ya wanna throw that in as a positive

 

Its laugable to think that it's the DOJ's job to bail out a Japanese company that has tens of billions of dollars at their disposal.

 

 

 

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Not allowing anti-competitive conglomeration is not a bailout.  Sprint will not be getting government money.  This post does not make sense.

3 minutes ago, Brad The Beast said:

In the long run, wouldn't roaming be more expensive?

Nah.  Voice roaming is just about free.  At the start of last year, it was down to just under 1 cent per minute.  Sprint can limit data to control those costs, but still likely less expensive.  The vast majority of their customers will not roam there.

2 minutes ago, Tengen31 said:

Just another reason to buy unlocked when using Sprint then you can switch when traveling. I'm thinking TMO on my next vacation

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Unlocked is always the way to go--especially in dual sim devices.

[tyroned3222]

Unlocked is always the way to go--especially in dual sim devices.

So, it is not the DOJ's job to protect debt and equity holders? in telecom..doors dont close, debt gets restructured is the bail out I’m speaking off .. not a money bail out from the government


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[newyork4me]

 

4 minutes ago, tyroned3222 said:

You gotta convince me on this one, cause after all the gains quarter after quarter for tmo they only post about 618 million free cash flow which is pennies compared to what Verizon and att make


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So, for their last quarterly results (reported yesterday), they generated $10.429 billion dollars in net cash from their operations in the year.  That means they had over $10 billion to invest in network CapEx, devices, or to service debt.

They are also having revenue growth as customers are upselling into the Plus and Premium add-ons as the network gets stronger.

[newyork4me]

Just now, tyroned3222 said:

So, it is not the DOJ's job to protect debt and equity holders? in telecom..doors dont close, debt gets restructured is the bail out I’m speaking off .. not a money bail out from the government


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It's not.  At all.

And that is assuming an action nobody is seriously talking about--judicial restructuring.  Sprint can, on their own, reissue new notes to pay off their current ones.  That's not a restructuring; it's a retirement and reissuance.

[tyroned3222]

  So, for their last quarterly results (reported yesterday), they generated $10.429 billion dollars in net cash from their operations in the year.  That means they had over $10 billion to invest in network CapEx, devices, or to service debt.

They are also having revenue growth as customers are upselling into the Plus and Premium add-ons as the network gets stronger.

 

Yes, but how much of this is actual profit? As of yesterday it was loss of 539 million, but as you stated which could of been cash flow positive? How much is my question?? Sprint was negative on cash flow 1.28 billion in 2018 I believe

 

 

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[RedSpark]

1 minute ago, newyork4me said:

Where is the notion they don't have sufficient cash flow coming from?  They are significant generators of cash flow from operations. 

From one of Sprint’s FCC Filings: https://ecfsapi.fcc.gov/file/1041986365867/Sprint Standalone Ex Parte Revised - REDACTED - 4.19.2019 AS-FILED.pdf

Relevant statements about Sprint’s cash flow issues appear throughout it. See Pages 1,4,6,8,9,13,17,18,19,36,37,39,40,41 and read the main section about cash flow/debt from Page 36 - Page 42.

[tyroned3222]

It's not.  At all.
And that is assuming an action nobody is seriously talking about--judicial restructuring.  Sprint can, on their own, reissue new notes to pay off their current ones.  That's not a restructuring; it's a retirement and reissuance.

On 40 billion in debt ?


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[newyork4me]

3 minutes ago, RedSpark said:

From one of Sprint’s FCC Filings: https://ecfsapi.fcc.gov/file/1041986365867/Sprint Standalone Ex Parte Revised - REDACTED - 4.19.2019 AS-FILED.pdf

Relevant statements about Sprint’s cash flow issues appear throughout it. See Pages 1,4,6,8,9,13,17,18,19,36,37,39,40,41 and read the main section about cash flow/debt from Page 36 - Page 42.

I've already read it.  Sprint is trying to use a failing firm argument to have their objectively verifiable competition-reducing merger approved.  It's hard to dispute the porting ratios, the HHI screen, and the spectrum screen, so they are doing the best they can by claiming they need it or else.

It's literally hogwash.  Read the earnings transcript from yesterday and closely pay attention to the words--Sprint is doing just fine.  They are one year into their network improvement plan and they are already noticing it is working.

[newyork4me]

4 minutes ago, tyroned3222 said:

On 40 billion in debt ?


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Verizon had about $120 billion in debt and AT&T over $110 billion.  It's not all due at once.  Within the next year, Sprint only has $4 billion maturing, and that's easily reissued.

[tyroned3222]

I've already read it.  Sprint is trying to use a failing firm argument to have their objectively verifiable competition-reducing merger approved.  It's hard to dispute the porting ratios, the HHI screen, and the spectrum screen, so they are doing the best they can by claiming they need it or else.
It's literally hogwash.  Read the earnings transcript from yesterday and closely pay attention to the words--Sprint is doing just fine.  They are one year into their network improvement plan and they are already noticing it is working.

Try more like 5 years of network improvement plans lol


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[newyork4me]

1 minute ago, tyroned3222 said:

Try more like 5 years of network improvement plans lol


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Ha.  Sprint is discounting their prior disaster of NV, etc., and just focusing on their John Saw network improvement plan when they talk about it.

I'm a believer.  If you go back in my post history, I didn't think Sprint could turn it around.  Los Angeles was a disaster.  They've bumped capacity like crazy, fixed coverage holes, and now have low-band LTE and VoLTE live.  It's night-and-day from a year ago.

[tyroned3222]

Ha.  Sprint is discounting their prior disaster of NV, etc., and just focusing on their John Saw network improvement plan when they talk about it.

I'm a believer.  If you go back in my post history, I didn't think Sprint could turn it around.  Los Angeles was a disaster.  They've bumped capacity like crazy, fixed coverage holes, and now have low-band LTE and VoLTE live.  It's night-and-day from a year ago.

The network is better that’s a big fact.. what would you say about the future and sprint bad brand image to the public .. how is that fixed ?

EDIT: buddy of mine says they are now outperforming tmo in Phoenix

 

 

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[Brad The Beast]

Just now, tyroned3222 said:

The network is better that’s a big face .. what would you say about the future and sprint bad brand image to the public .. how is that fixed ?

Could do a re-brand.