Any thoughts on the potential T-mobile talk?

[drexappeal]

http://phandroid.com/?p=130833

 

[Orion]

Funny, I was planning to leave Sprint to go to T-Mobile sometime next year. I don't know if this merger will happen though.

 

[jmatherly411]

Doubt this deal will go through with the feds, they wouldn't let AT&T/T-Mobile merger go through, it won't happen this time. Government has already said it wants 4 major wireless providers for competition so why would they agree on a Sprint/T-Mobile merger. This could be another Nextel all over again if they allow it, T-Mobile operates on a GSM network and Sprint on CDMA this equals more confusion like the iDEN and CDMA networks. If Sprint is doing this for more spectrum why not bid on the 600Mhz spectrum in a couple of years. Just as Sprint is starting to fix their past problems by upgrading their network through network vision they want to waste money on buying T-Mobile. Why not use that money and put it towards future network improvements after post network vision?

 

[kate]

I'm wondering if they are planing on merging the companies, or keeping them separate.

It's possible Sprint could buy T-Mobile and then leave the T-Mobile brand as is - similar to how MetroPCS remained after being bought by T-Mobile.

 

[drexappeal]

I'm wondering if they are planing on merging the companies, or keeping them separate.

It's possible Sprint could buy T-Mobile and then leave the T-Mobile brand as is - similar to how MetroPCS remained after being bought by T-Mobile.

Not really a good comparison though. MetroPCS wasn't a major mobile carrier. ATT, Verizon, T-Mobile, and Sprint are considered the big 4.

 

[mak916]

I thought that Metro will eventually fade out by the summer of next year. I personally hope the merge, buy out, goes through. I think it will help the customers of both companies. Both networks need big improvements in many places. Both combined still will not be as big as AT&T or Verizon. The main problem I see of course is CDMA vs GSM. But eventually LTE will take care of that problem. It could work I think, but it might take a while. But I think Sprint/SoftBank would do better going after U.S. Cellular right now.

 

[drexappeal]

I thought that Metro will eventually fade out by the summer of next year. I personally hope the merge, buy out, goes through. I think it will help the customers of both companies. Both networks need big improvements in many places. Both combined still will not be as big as AT&T or Verizon. The main problem I see of course is CDMA vs GSM. But eventually LTE will take of that problem. It could work I think, but it might take a while. But I think Sprint/SoftBank would do better going after U.S. Cellular right now.

I'm still trying to figure out why there are a lot of people, on the Phandroid article, that don't want the merger to happen. While Sprint doesn't have the greatest reputation, as far as coverage is concerned, it would just seem that having the combined networks would help both sides.

For me personally, Sprint coverage at my house far exceeds any of the 4 carriers. T-mobile seems better in open areas in L.A. And data speeds for T-mobile's 3G has been much faster than Sprint's.

Ultimately, I've never minded the slower data speeds, as long as it works fast enough for me to kill time (while out and about). Of course, anything that will increase the coverage and speed, I'm never against.

 

[Orion]

As long as they keep the T-Mobile plans.

 

[mak916]

As long as they keep the T-Mobile plans.

I am up in the air on the plans. I have been to the T-Mobile store a few times to talk to them about their plans. I would be ok with them, but I like my Everything Data Family Plan I have with Sprint. I think I would save about $10 to $20 with T-Mobile. I would definitely get better data speeds right now with T-Mobile until Sprint finishes their LTE setup here. I like to travel, I find that Sprint has LTE in places where other carriers do not have service, or little service. I can see why Sprint started out in the little places first. So I am playing the waiting game. But I am getting a little tired of waiting. So anything that will improve Sprint's network I'm down for.

 

[twospirits]

I'm still trying to figure out why there are a lot of people, on the Phandroid article, that don't want the merger to happen. While Sprint doesn't have the greatest reputation, as far as coverage is concerned, it would just seem that having the combined networks would help both sides.

For me personally, Sprint coverage at my house far exceeds any of the 4 carriers. T-mobile seems better in open areas in L.A. And data speeds for T-mobile's 3G has been much faster than Sprint's.

Ultimately, I've never minded the slower data speeds, as long as it works fast enough for me to kill time (while out and about). Of course, anything that will increase the coverage and speed, I'm never against.

It's just not the Phandroid article but quite a few media outlets as well. In fact, Sascha Sagan over at PC Mag went ballistic over the rumor and has pointed out numerous reasons why the deal should never happen. he lists mostly all cons and no pros on why its not a good idea. The cherry on the cake was when he said that having 3 top carriers wouldn't work here because Canada has 3 and its not working there. I personally think whatever happens in Canada is Canada, just because a system may or may not work in another country does not mean it will duplicate here in the USA. Whether good or bad. Still, one cannot dismiss what all these folks are saying until you debug each con.

As long as they keep the T-Mobile plans.

I am up in the air on the plans. I have been to the T-Mobile store a few times to talk to them about their plans. I would be ok with them, but I like my Everything Data Family Plan I have with Sprint. I think I would save about $10 to $20 with T-Mobile. I would definitely get better data speeds right now with T-Mobile until Sprint finishes their LTE setup here. I like to travel, I find that Sprint has LTE in places where other carriers do not have service, or little service. I can see why Sprint started out in the little places first. So I am playing the waiting game. But I am getting a little tired of waiting. So anything that will improve Sprint's network I'm down for.

Actually I find that Sprint plans are a bit better and contrary to what folks think, Sprint actually came out with numerous plan changes from Premier a few years ago to yearly upgrades just recently that were actually pre-dating T-Mobiles plans. But for whatever reason, Sprint didn't advertise them as much and some were stopped. Then comes the T-Mobiles Uncarrier onslaught and everyone thinks they are the ones that started it all. Sort of reminds me of Hyundai with their 10 year/100000 mile warranty. They came out with it first and folks laughed, but then others copied it and marketed a bit better and folks think the other ones were the one that conceived of it.

Regardless, the point of this is that if the merger were to go through, it is not so much the plans, which can be customized to be the best of both but rather other obstacles that will get in the way as per some of these folks.
One is that each carrier has way too many frequencies. Putting them all in a device will be next to impossible. Imagine the recent Samsung Galaxy Note 3 Tri-band fiasco multiplied that ten fold and you get the idea. But with a combine Sprint/T-mobile they will be a powerhouse to make OEMS put in all the necessary radios.

Another is having two different technologies "GSM and CDMA", but with LTE it becomes nearly irrevelant since that is the path all are going to take in a couple of years. Current and upcoming Network Vision infrastructure will be able to support legacy T-Mobile tech as well. For me the technical aspect isn't the part that might make this deal fall through its the competitive aspect as per what the FCC has been mouthing off about the last few years. That is what will be fully scrutinized.

So the question becomes "Will it make things still competitive", I think so. The combined company/carrier will have the best all around spectrum (from Clearwire), plans and subscribers (from both T-Mobile and Sprint), Network Vision that will make it a true "Uncarrier" force that can really hit AT&T and Verizon hard as well be a force to be reckon with with OEMS to make them include all the radios in devices.
For the technical aspect of it see these two external posts ( 1 and 2) They really showcases that the merger is possible.

So to me this rumor is beyond rumor in my eyes, it's going to happen. The issue now is will it go through. And as much as some hate the idea, I am so for it.

TS

 

[Rxpert83]

I'm still trying to figure out why there are a lot of people, on the Phandroid article, that don't want the merger to happen. While Sprint doesn't have the greatest reputation, as far as coverage is concerned, it would just seem that having the combined networks would help both sides.

For me personally, Sprint coverage at my house far exceeds any of the 4 carriers. T-mobile seems better in open areas in L.A. And data speeds for T-mobile's 3G has been much faster than Sprint's.

Ultimately, I've never minded the slower data speeds, as long as it works fast enough for me to kill time (while out and about). Of course, anything that will increase the coverage and speed, I'm never against.

My personal take...


I'm against it for the sake of preserving everything T-Mobile is doing for the mobile market. They're driving the changes being made for more consumer friendly practices. Theyre small enough to need to do revolutionary things to gain market share and force the large carriers to respond.

What incentive do they have to keep pressuring the big 3 (helping consumers) when they're owned by one of them? From Sprints standpoint, what better way to limit damage than to buy them and have a preview on what is going to happen and have the final say on whats being done? Leaving T-mobile as its current seperate brand owned by sprint allows them to do just that.

I'd rather have an unchecked T-mobile able to make the moves it wants to.

 

[twospirits]

Again it is just not from Sprints' standpoint. T-Mobile has express for this merger for a while too. And you are right, right now they are small enough but not enough to really continue doing this for long. Sure, they want to be the uncarrier and bring about change and in the short term they have, but in the long term the big 2 will modify some things here and there to make it look like they are doing the same but just enough to continue to hold on to their subscribers to not flock away.

Then there is the spectrum.
T-Mobile does not have the spectrum across the board that will help it succeed in making a major impact on the big two. All its doing is restricting itself along with Sprint in competing more among each other than the big two. Together they can merge their strategies and come out with more unique cost savings as well as industry leading programs, incentives and plans that the other two won't be able to match and with the load of spectrum, the combined company will have will be enough to implement such strategies and still not run of of spectrum when the other two will.

I see 2014 is going to be one very interesting year in the telecom world.

TS

 

[Orion]

I totally agree with both pros and cons of this merger. I'm really interested to see where this is going. Personally, I'll be kind of shocked if it happens.

 

[jhawkkw]

The issue for T-Mobile is that DT owns roughly 2/3 of the company and they want out of the US market. It seems inevitable that T-Mobile will get sold, but the only question is who buys them. As if all the combined spectrum between Sprint & T-Mobile as well as the CDMA/GSM issue, you also have the impending 600MHz spectrum on the horizon. There's also word that apparently after losing out on buying Sprint, it appears Dish Network also wants to make a run at buying T-Mobile.

Personally, I'd rather see T-Mobile bought out by someone who would invest in them rather than simply absorb them and reap the benefits.

 

[mak916]

My personal take...


I'm against it for the sake of preserving everything T-Mobile is doing for the mobile market. They're driving the changes being made for more consumer friendly practices. Theyre small enough to need to do revolutionary things to gain market share and force the large carriers to respond.

What incentive do they have to keep pressuring the big 3 (helping consumers) when they're owned by one of them? From Sprints standpoint, what better way to limit damage than to buy them and have a preview on what is going to happen and have the final say on whats being done? Leaving T-mobile as its current seperate brand owned by sprint allows them to do just that.

I'd rather have an unchecked T-mobile able to make the moves it wants to.

I agree with you about what T-Mobile is doing for the mobile market. This is why I really didn't want MetroPCS to be bought by T-Mobile. Metro gives their customers unlimited everything at a very low cost and no contacts. Kind of what T-Mobile is doing. It is always good to have other options when it comes to other carriers. Sprint is doing that with unlimited data. I think that both carriers together could offer us so much more being together. Is there a risk? Of course there is a risk. But the benefits could be so much worth the risk. But then if it doesn't work, it could really hurt us. I say give it a try. Things are not working the way they are for Sprint or T-Mobile. Something is going to have to give.

 

[IOWA]

I would not be a fan of this merger. We'd have 3 mega companies and smaller ones.. well SoL. So much for competition.

 

[twospirits]

An excellent analysis.

The only wrinkle not touched upon is Dish sticking their nose into the equation and possible jacking up the price of the merger much like they did with Softbank/ClearWire/Sprint.

TS

 

[mak916]

I thought this was a good read on the subject.

Yahoo!
A T-Mobile-Sprint merger is the last thing we need right now

 

[twospirits]

I thought this was a good read on the subject.

Yahoo!
A T-Mobile-Sprint merger is the last thing we need right now

Especially the comments which are more enlightening.

TS

 

[Web_Paige]

The thing that concerns people about a SoftBank(Sprint)/T-mobile merger is that so many of the cell phone companies that operate in the U.S. are already owned by foreign corporations. For example: SoftBank is a Japanese corporation, and it owns 80% of Sprint. Here's a list of Sprint's wholly owned subsidiaries:Assurance Wireless, Helio, Virgin Mobile USA; in addition, Sprint is the parent company of Boost Mobile.

Verizon Wireless: 55% American owned; 45% British owned, although Verizon Communications (American owned and dba Verizon Wireless) has agreed to by Vodafone's 45% stake in Verizon Communications.

Tracfone: depending on the stats you're looking at, either 55% is owned by Telefonos de Mexico, or 98.2% is owned by America Movil, both being Mexican corporations. Tracfone's service brands are: Tracfone, Net10 Wireless, SafeLink Wireless, Straight Talk,SIMPLE Mobile, and Telcel America.

MetroPCS - operated by T-Mobile; May 1, 2013, MetroPCS officially merged with T-mobile.

Basically, that leaves AT&T in Dallas, Credo in San Francisco, and Verizon in New Jersey as the only good-sized American owned phone companies. If SoftBank purchased T-Mobile, then a Japanese company would own all of T-Mobile and most of Sprint, Assurance Wireless, Helio, Virgin Mobile USA, and Boost Mobile, (not to mention Clearwire that it just recently purchased).

Not sure that the FCC wants one foreign company to control that much of the US cell phone industry. This isn't necessarily my opinion, it's just what I've heard people talking about, and I didn't see that anyone had mentioned this perspective, so I wanted to put it out there.

 

[drexappeal]

The thing that concerns people about a SoftBank(Sprint)/T-mobile merger is that so many of the cell phone companies that operate in the U.S. are already owned by foreign corporations. For example: SoftBank is a Japanese corporation, and it owns 80% of Sprint. Here's a list of Sprint's wholly owned subsidiaries:Assurance Wireless, Helio, Virgin Mobile USA; in addition, Sprint is the parent company of Boost Mobile.

Verizon Wireless: 55% American owned; 45% British owned, although Verizon Communications (American owned and dba Verizon Wireless) has agreed to by Vodafone's 45% stake in Verizon Communications.

Tracfone: depending on the stats you're looking at, either 55% is owned by Telefonos de Mexico, or 98.2% is owned by America Movil, both being Mexican corporations. Tracfone's service brands are: Tracfone, Net10 Wireless, SafeLink Wireless, Straight Talk,SIMPLE Mobile, and Telcel America.

MetroPCS - operated by T-Mobile; May 1, 2013, MetroPCS officially merged with T-mobile.

Basically, that leaves AT&T in Dallas, Credo in San Francisco, and Verizon in New Jersey as the only good-sized American owned phone companies. If SoftBank purchased T-Mobile, then a Japanese company would own all of T-Mobile and most of Sprint, Assurance Wireless, Helio, Virgin Mobile USA, and Boost Mobile, (not to mention Clearwire that it just recently purchased).

Not sure that the FCC wants one foreign company to control that much of the US cell phone industry. This isn't necessarily my opinion, it's just what I've heard people talking about, and I didn't see that anyone had mentioned this perspective, so I wanted to put it out there.

Very interesting point. And an angle I really hadn't thought of, so I appreciate your bringing that up. You have any links you can share where discussions are taking place about that? I'm not that well versed in the subject, so I don't really have any concrete analysis to share, but would definitely be interested in reading points made from those that are more knowledgable.

 

[twospirits]

Yes it is true that if the merger goes through it will leave just AT&T and Verizon as the only US based telecommunications holding companies. But besides US telecom company, there are plenty of companies that some think are American but are actually controlled by foreign countries.. here is a small list.

Anheuser-Busch (US largest brewer controlled by Belgium InBev)
Miller Brewing Company (now owned by South African Brewing Company)
AMC Theaters (now owned by Chinese The Dalian Wanda Group))
Citgo (Originally US based now controlled by government of Venezuela)
Good Humor ( controlled by British-Dutch conglomerate Unilever)
French's Mustard (was American now British conglomerate Reckitt Benckiser)
Frigidaire (originally owned by General Motors now by Sweden's AB Electrolux)
Puma / Adidas (Puma owned by Germans who own Reebok)
Caribou Coffee (originally based Minneapolis US, now owned by Bahrain based First Islamic Investment Bank, which also owns Church's Chicken)
Trader Joe's (now owned by German based ALDI)
7-Eleven (now owned by Japan's Seven and I)
Holiday Inn (bought by Brits from Bass which changed into InterContinental Hotels Group)
Dial Soap (now owned by German conglomerate Henkel KGaA)
Firestone (now owned by Japan's Bridgestone)
Burger King (now owned by 3G Capital of Brazil)
Heinz (purchased by Berkshire Hathaway and 3G Capital of Brazil)
and from the files of truly unbelievable..
Indiana Toll Road Route 80 (built by Indiana but leased to Spain's Cintra and Australia's Macquarie) the same goes for
the Chicago Skyway (also leased to Spain's Cintra)

The list goes on and on

I won't even go into National Landmarks like the Plaza Hotel, Flatiron Building, Chrysler Building all in NYC, Campton Place Hotel in San Francisco, etc, etc.

The bottom line is US Citizens don't really care who owns a company so long as the services and products it puts out are good enough to buy or use. A telecommunications company (in my opinion) would fall in that same category.

TS

 

[Rxpert83]

I'm not all that concerned with who owns who.

I'm just pro competition, which could go either way in this issue

 

[Trevinator110]

Okay first off I want this deal to go through so bad and heres why. Sprint is seriously hurting right now. They need profits and after reading somewhere that they will increase with the acquisition of T-Mobile ive been all for it. The more money sprint will be able to rake in, the faster they can spread LTE and Spark. One thing i thought of was in turn from sprint buying T-Mobile, they will own Metro which has a CDMA network which could be expansion for sprint? I can really see this deal going through too because of the difference in network types. The FCC stopped the tmobile and ATT merger cause it would create that super network that could cause a monopoly over the market. This is different though, T-Mobile phones cant use sprint and Sprint cant use T-Mobile so i don't see much of a reason for the FCC to put their hand down unless someone else knows something I don't. thoughts anyone?

 

[kate]

One thing i thought of was in turn from sprint buying T-Mobile, they will own Metro which has a CDMA network which could be expansion for sprint?

Metro has been planning to shut down it's CDMA network by 2015. When you start an account with them you get GSM phones.