In December of 2011, right after the cable industry struck their massive spectrum and marketing arrangement with Verizon
, Sprint filed suit against Comcast, Time Warner Cable, CableOne, and Cox
for supposedly violating Sprint VoIP patents. In early 2013 Comcast returned the favor, suing Sprint for violating numerous patents related to core network services, SMS/MMS, and 3G modem technology. After a four day federal trial, this week Sprint was forced to pay $7.5 million
to settle the case. Sprint's original suit, which resulted in this counter-suit, isn't expected to see a court room until next year.
One thing of particular note to our readers during Apple's unveiling of new iPads
yesterday is the new Apple SIM, which Apple didn't mention at all -- yet most analysts believe has a real chance to disrupt the industry. Installed on iPads with embedded Wi-Fi and cellular radios, Apple notes
their new Apple SIM allows users to float between carriers without having to replace the SIM card.
With the Sprint deal dead due to skeptical regulators and the Iliad deal now dead
, can T-Mobile now finally just focus on being the best wireless competitor they can be? While Deutsche Telekom has expressed interest in offloading the US carrier for much of the last decade, company board members are starting to wonder if it's a good idea to offload that company's only growing asset
. T-Mobile CEO John Legere has also stated he's "sick and tired" about M&A speculation.
While everybody was busy speculating on who would be buying the under-performing T-Mobile, the company slowly but surely stopped under-performing, and while still facing plenty of challenges, is starting to pose a more serious challenge to incumbents AT&T and Verizon
“Now that you’ve flushed out that M&A speculation, the stock is actually attractive now on fundamentals,” Kevin Smithen, an analyst at Macquarie Securities USA Inc., said in a phone interview yesterday. “They’re doing very, very well in the current environment.” T-Mobile has done a good job understanding what consumers are looking for, including more simplified pricing plans, said Smithen, who has the equivalent of a buy rating on the stock and expects it to reach $34.
Legere seems ok with that:
“The company is doing extremely well so I can do whatever the f--- I want,” Legere said, when asked about his relationship with Deutsche Telekom.
Acquisition speculation isn't entirely
dead given Dish's supposed interest in acquiring a stake in T-Mobile. However, after years of speculation about Charlie Ergen's intentions it's still hard to tell if Dish is serious about wireless -- or if the company is just making a lot of noise to inflate the value of Dish spectrum ahead of a sale.
“Sprint will cease operating the Sprint 4G WiMAX network on or about November 6, 2015,” a Sprint spokesperson tells Wireless Week
. Sprint had previously only stated that the network would be shut down sometime in 2015. Internal Sprint documents leaked to Android Central
indicates that letters announcing the shutdown were sent to Sprint's corporate-liable customers this past Monday, with individual-liable and prepaid customers being notified of the shutdown 180 days in advance. If you travel with me for a moment in the way back machine to 2004
, you might notice that the claims made about WiMax changing the world didn't quite live up to snuff.
Back in January, a Sprint SEC filing
stated that the company would be launching "workforce reduction plan to reduce costs and better meet the changing dynamics of the marketplace." Those reductions have been ongoing throughout the year, with a new SEC filing
indicating that Sprint expects to take a $160 million hit in the second quarter due to severance packages. The company's latest filing did not disclose the precise number of employees that have (or will be) let go, only noting the layoffs are hitting management and non-management positions alike.
Dish announced in May of last year
that the company would be offering fixed LTE services in a new partnership with nTelos. At the time, the companies stated they'd be ultimately offering the service in Virginia, West Virginia, Maryland, North Carolina, Pennsylvania, Ohio and Kentucky -- though hard details on the plan were hard to come by.
Sprint has slowly but surely been expanding the company's "Spark" LTE upgrades, which combine the company's 2.5 GHz, 1900 MHz and 800 MHz bands for improved regional capacity and speeds Sprint promises should top out around 60 Mbps. According to a Sprint announcement
, the company just added Cincinnati, Ohio and Rockford Illinois to the list of markets where Spark has been deployed. You can find a list of all Spark deployed markets here
, and all of the Sprint smartphones that support Spark here
. You can find Sprint's master list of deployed LTE markets here
Back in July French telco Iliad lobbed a rather underwhelming softball offer
of acquisition at T-Mobile, offering $15 billion in cash to acquire 56.6 percent of T-Mobile. Deutsche Telekom wasn't impressed, though reports suggest that the company is still very much open to a deal to sell the freshly-disruptive US carrier, which the company has been trying to offload since 2011 or before. Reuters
indicates that Iliad is preparing to make an improved offer, "but has set specific limits on how much money it would raise to fund any deal." Deutsche Telekom spent a year negotiating a T-Mobile sale to Sprint, only to have it scrapped on fears that regulators would block the deal.
Popular Science serves up an interesting read
about the discovery of fake "towers" that are being used to surreptitiously intercept cell phone traffic. ESD America offers a product they call the GSMK Cryptophone 500, which is essentially a Galaxy S III running modified hardware and a modified, more-secure version of Android -- which the company states purges 468 vulnerabilities from the traditional Android build.
California this week became the first state in the country to pass a law requiring that cell phones include so-called "kill switch" functionality to deter theft, enabled by default (the full law is here
, pdf). Minnesota passed a similar law earlier this year, but in that version of the law, the functionality is turned off by default.
T-Mobile took a shot at Sprint, AT&T and Verizon today with a new promotion that gives the company's Simple Choice plan users unlimited LTE data for a year if they bring another user over to T-Mobile. If the Simple Choice plan users already have unlimited data, users will receive a $10-per-month credit for a year. story continues..
It was just last week that we noted how Sprint CEO Dan Hesse seemed terrified of cutting prices to compete with T-Mobile
, expressing concern that if the company reduces prices -- they by proxy reduce revenues necessary to get the company's LTE network up to snuff. Hesse of course has since been informed he'll be fired from the new CEO spot
, with Sprint also announcing their intention to give up their pursuit of T-Mobile.
Last month we noted
that Sprint and T-Mobile were hoping to join forces and bid under a joint venture company in the FCC's 2015 incentive auction of 600 MHz spectrum. That may not float for the FCC, who in a blog post
stated that the agency is circulating a proposal that would bar such a play.
Sprint and SoftBank's plan to acquire T-Mobile just got somewhat more complicated on the news that French telco Iliad has made their own counter-offer to acquire the telco. Iliad today announced the company has made a $15 billion cash offer to purchase 56.6 percent of T-Mobile. story continues..
Last month Senators Patrick Leahy (D-VT) and Charles Grassley (R-IA) introduced the "Unlocking Consumer Choice and Wireless Competition Act
(pdf), which aims to make unlocking one's cell phone technically legal again, even if it doesn't fully address the myriad of problems with the DMCA. In January of last year unlocking your cellphone technically became illegal
after the Librarian of Congress removed it from the DMCA exception list.
Sprint this week unveiled the company's new LivePro LTE hotspot, which does a little bit of everything -- including operating as a mini digital projector a mobile hotspot, back-up battery, and stand-alone media streaming device. According to the Sprint announcement
, the device also has a four-inch touchscreen and runs Android 4.2, allowing you to install apps directly to the unit. According to Sprint the LivePro is available starting July 11 for $450, or 24 payments of $18.75.
To try and sell regulators on a Sprint takeover of T-Mobile, SoftBank boss and Sprint Chairman Masayoshi Son has been insisting that the deal would allow Sprint to join the fixed-LTE broadband space, bringing additional competition to the home broadband market
. This strategy appears to be news for Sprint CEO Dan Hesse, who stated this week that offering a fixed LTE service is nowhere on Sprint's horizon. When outlets pointed out the contradictory positions of Son and Hesse, the company's PR department stated
"Dan was speaking to Sprint's short-term focus--completing our 3G and voice network rip and replace, rolling out our 4G LTE network, launching Sprint Spark, expanding the Framily platform and growing EBITDA--and how they fit with our spectrum and other assets/resources," Sprint spokesman Scott Sloat told FierceWireless. "Masa's remarks have been in the context of his long-term vision."
In other words, like I noted in April
, Sprint has its hands full just running a decent LTE network right now, and the promise of significant fixed LTE competition is just regulator bait.
While consumers clearly love T-Mobile's more aggressive, consumer friendly policies and pricing, I've seen more than a few people in the industry quietly wonder if T-Mobile CEO John Legere isn't just playing a cartoon character
with the express purpose of helping sell T-Mobile to SoftBank. After all, they argue, while Legere's mocking of AT&T on Twitter
provides great comedy, he seemed to be a different human being entirely during his time at AT&T or as CEO of Global Crossing (and Asia Global Crossing, a SoftBank joint venture).
Sprint has scheduled a media even in Chicago for June 23
, during which the company is likely to give an update on the company's ongoing network improvements. Despite making a lot of noise
about the company's "Network Vision" upgrades a few years back, those upgrades were too little too late, with the company currently lagging behind the other three carriers in most LTE speed and latency tests. Late last year new Sprint owner SoftBank declared that a turnaround could take two years
. While Sprint customers wait T-Mobile is pretty clearly grabbing all the PR attention, something that could be eliminated by a Sprint T-Mobile merger
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