SoftBank, Sprint in 'Final Stages' of Acquiring T-Mobile

Look at the failed merger of AT&T and T-Mobile. And the current political landscape is not that business friendly. A few years ago AT&T would have been allowed to buy T-Mobile.

On the other hand merging the two networks would be a disaster as one is GSM based and the other is CDMA based. Look at Nextel and oh how much fun that was, they ended up scrapping that network.

AT&T and T-Mobile would be much easier to merge as they are both GSM based networks. Same with merging Sprint and Verizon, they are both CDMA. You not only have to factor in consumer handsets but fixed wireless devices like alarm transmitters, medical monitoring systems, etc when changing out wireless technologies. Many devices communicate over the cellular network, not just cell phones. They even have a dog collar that gives the location of your dog that transmits over the Verizon network.

Voice network is not what the goal is here.

They want to bring more i phones into china.

What does that have to do with this? Neither SoftBank nor Deutsche Telekom has much business connection with China and it sure isn't the purpose of any US merger.

The political landscape is plenty business friendly. It's just more consumer-friendly than it has been in many years. Since Sprint and T-Mobile combined would STILL have fewer customers than ATT or VZW, the outcome of a Sprint-TMO merger is QUITE different than what the outcome of a TMO-ATT merger would have been. Namely that a Sprint-TMO merger would truly give us a "big-3" for national carriers, rather than a "big-2 and little-2".Kinda like how the Metro-TMO merger was a disaster??? Seriously folks. The reason the Sprint-Nextel merger went to crap is 99% terrible management. The industry knows it. The regulators know it. T-Mobile sure as hell knew it. T-Mobile is integrating Metro's CDMA network ahead of schedule. In fact, just about all network improvements T-Mobile is making are ahead of schedule.

On the note of M2M services (like dog collars, POS systems, etc) - most of them use base CDMA or GSM. A Sprint-TMO network would still need CDMA and GSM network for legacy devices, but like T-Mobile has already begun doing, a merged company could reduce the spectrum allocations for CDMA and GSM further to allow for basic roaming and legacy support.

If a TMO-Sprint merger went south, it would be because of continued crappy Sprint management. T-Mobile has proven quite well that you can convert users from an dying, outdated network technology (CDMA) to evolved, modern, and continuously updated 3gpp-sponsored technologies like UMTS/HSPA+ and LTE. In this day and age, a network technology change is far better understood.

The only complication on a network level that I can see is really just the fact that both TMO and Sprint are in the middle of some massive CAPital EXpenditures for network modernization. Modernizing HSPA is simple enough, but Sprint is deploying CDMA on their 800mhz spectrum which means that "new" CDMA panels are going up which would be surplus in an efficient, combined (ie HSPA/LTE) network.

All that said, this is just absolutely terrible timing on the part of both companies. That's why I think this is just the same as all the old false rumors in the past. If they've been in talks for as long as they supposedly have, then it would make WAY more sense for Sprint to be pushing VoLTE on their network.

IMHO, if Sprint and T-Mobile are in talks together, it's not for a merger at all. It's for dealing with MetroPCS' existing roaming agreement with Sprint, and maybe figuring out some new, upgraded network-sharing agreement for LTE. After all, T-Mobile and Sprint are in the same boat when it comes to LTE. They're both behind ATT and VZW in coverage, they're both spending a lot to deploy LTE as fast as possible, and they're both short on low band spectrum. A network sharing/LTE roaming agreement makes an ass-load more sense.

I would have far less of a problem with TMO taking over Sprint( still a big problem though ) than Sprint taking over TMO, which would inevitably end any competition and customer friendly policies of TMO and considered Sprint's crappy management would be probably a technical disaster as well.
It has been proven in European countries over and over again with the mergers in recent years that competition does NOT work with 3 national carriers only, or you need an extremely strong regulation which ids not to be expected from this CONgress or FCC.
We just escaped the Tea disaster and now Sprint- gosh, not again.

As far as Sprint managment, we already seen what they're able to destroy. And it would TMO without any time at all. Talk about posting a loss in customers right away. Sprint would kill all of the things TMO has done over the last several months. VZW and AT&T should claim they can't compete with this merger like Sprint did, and then turn around and raise rates on their prepaid customers. After all Sprint did it.

Yeah, have a hard time seeing the Feds allow this. The Feds will more likely want Dish to acquire Tmobile. Could see Tmob/Sprint merge eventually but only if one is about to go Chapter 11.

Softbank is trying to pre-emptively strike before Dish or someone else goes after Tmob but I don't think they have any lobbying power to make it happen with Feds when ATT couldn't do it.

Unless they agree to more NSA reps like they did with Sprint.

Does "business unfriendly" mean less subservient to big corporate/monopoly/duopoly/top 0.5% ?? If so, this country needs a very business unfriendly government.

Yeah, as unfortunate as the blocking of the AT&T/ T-Mobile deal was, this deal makes no sense from the get-go. Sucky carrier plus sucky carrier isn't going to make a competitior for AT&T and Verizon, and the technology mismatch would be a nightmare. And if Sprint's SMR factors into this in terms of building out a better network, Softbank should be able to do that just fine without T-Mobile involved. Imaging a 800/PCS/PCS G/AWS/2600 network. YUCK.

UNFORTUNATE???!!!

Yes. The combined carrier would have had an incredible network with a combination of more sites and spectrum synergy.

LOL. He even used the word "synergy".

Sniff... sniff... sniff. Is it me, or do we smell an AT&T shill amongst us?

The best thing that's happened for wireless CONSUMERS in recent times is the Feds putting the kabosh on the AT&T/T-Mobile merger.

T-Mobile has a REALLY GOOD thing going with their un-carrier initiative. I couldn't be happier with T-Mobile's network and their pricing is FAR better than AT&T and VZ.

My personal iPhone 5s on T-Mobile works every bit as good, and in many cases faster in speedtests, than my iPhone 5s on AT&T issued by $DAYJOB.

I'm dreading the thought of anyone buying out T-Mobile right now.

I just looked at the facts, and supported the merger. I also think, however, that the FCC should have used it as an opportunity to enact some very strict regulation that would have otherwise been viewed as unfair. T-Mobile doesn't help competition, as AT&T and Verizon know that their horrible networks aren't a credible threat to anyone for anything.

Don't know what market you're in, but in west central FL the T-Mobile network is every bit as good as AT&T's. I carry a personal iPhone on T-Mo along with a $DAYJOB-issued iPhone on AT&T, so I get direct side-by-side comparison.

As for T-Mo not helping competition-- they ARE the competition. Compare their plans with AT&T and VZ. They are no-contract all the way, and pricing is clearly disruptive.

(Disclaimer: I don't work for T-Mobile or any of its affiliates, and I'm not an investor. Just a very happy T-Mo customer who HAS used both of the other carriers.)

In most markets, in most places, T-Mobile is a distant fourth behind Sprint, who is a distant third to the big boys. And AT&T and Verizon know this. They know that they aren't competing with T-Mobile and Sprint. Nor do the big boys really want the bottom scraping customers who go to Sprint and T-Mobile. I don't disagree that the pricing would be disruptive if they offered a similar service to AT&T and Verizon. The simple fact of the matter is that they don't. No amount of cheap service or data is going to make me choose a mix of EDGE and no service (roaming) over consistent and reliable Faux G. That's the reality here on the NEC/I-95 between New York and Boston.

Interesting.

In our market Sprint is the clear-loser carrier. Previous $DAYJOB experience with Sprint was painful. Our mobile-workforce users were constantly and bitterly complaining, so we switched to Verizon and coverage was excellent. At contract end, we bid the account and AT&T blew away VZ's renewal offer which is why we're on AT&T now. Verizon's coverage seemed to be slightly better than what we're getting now with AT&T, but nothing significant. My personal experience with T-Mobile is they solidly compete with ATT/VZ for coverage in this particular market.

My sister who lives in the mountains of western NC tried AT&T but had big problems with dropped calls while driving. She paid the ETF to break out of her AT&T contract and signed on with VZ. Much better. When visiting her, my $DAYJOB phone on AT&T has real problems with dropped calls. I've actually had to borrow her VZ phone to finish an important work-related call while we were driving around town.

Goes to show how the quality of a carrier can vary from one market/region to another.

Yeah, CA and FL are strong for T-Mo. You guys may have decent Verizon, but AT&T is the only good carrier on the East Coast of FL, since they own all 50mhz of CLR spectrum. How the FCC let that one through is a mystery to me. They should have forced a swap/divestiture to Verizon in exchange for 20 or 30mhz of PCS. Yes, they can vary a lot region to region, although AT&T or Verizon will generally work about anywhere nationwide, whereas T-Mobile and Sprint have pockets where they are OK, and massive areas where there is little or no coverage at all. AT&T is ahead nationally right now after the cleanup of NYC and SF, and with Verizon's mess in NYC and LA, but with AWS going online, Verizon is about to fight back hard. Verizon still has the issue of not having enough towers. The combined AT&T&T would have had the dominant network, with deep spectrum assets, low-band spectrum, a dense tower spacing, and wide coverage.

I'm visiting N of Tampa (rural area of Brooksville) and get great Sprint LTE but there is no Tmobile coverage at all.

You must be near one of the (very few) Sprint towers in the Spring Hill / Brooksville area.

Look at Sprint's network map and you'll see a good chunk of the area is listed by Sprint as "Off Network Roaming".

As it should. TMO has two companies there that would go away. TMO and Metro. Softbank/Spent should not get either.

Just one more reason this is bad. The network change could make things useless. Like The time people where left with Useless Onstar units because of a network change.

They won't have to merge the two networks the same as Nextel-Sprint. They both have LTE networks that will be fully operational in the next few years and will be able to push all their customers to that once VoLTE is all worked out. That among a ton of other things would make this one a good merger in my eyes.

You still would end up with a mess of different spectrum licenses.

While approval could go either way the difference here is that I doubt Sprint will tell lie upon lie upon lie upon lie as AT&T did. Popular opinion plays a big role in situations like this (pubic outrage). Also the difference is that in this case 2 smaller companies are combining to create a 3rd carrier that can compete with the other 2. In the case of AT&T they just wanted to eliminate a company that would have the ability to steal their customes (which TM is now doing).

This is to date, the most realistic and correct post on the subject. People just don't get it I guess.

Very bad for the cell phone customers in the US. Let's see a horror show of merging networks (probably moving forcing T-Mobile customers off GSM to the more closed world of CDMA and Sprint). Less competition meaning even if you are not a T-Mobile or Sprint customer, get ready to screwed every which way as less competition is pretty much always bad for the customer. T-Mobile's MVNO's will probably be shut down. Leaves AT&T as the only GSM network in the country. Not good all the way around. I hope the government rejects it. Will be contacting my Senators (Elizabeth Warren & Ed Markey) and Congressman (Jim McGovern) to ask them to do what they can to block this anti-consumer takeover

And AT&T will probably go over to CDMA leaving zero GSM carriers in America.

What proof do you have that can back up that notion? Or is this just another statement that you made up.

Sprint and T-Mobile don't need to merge to be competitive with AT&T/Verizon.

Sprint has the full backing of SoftBank, and is flush with cash. They have 800 MHz Spectrum as well as tons of 2.5 GHz from clearwire.

T-Mobile is gaining customers with its no contract plans. It needs to participate in the Spectrum Auction and get some low band Spectrum to cover areas it doesn't right now. A merger with Sprint isn't necessary for that to happen.

Agree. Sprint will be in good shape after completing rollout and with Softbank big bucks. Tmobile will be in better shape with a lower band but they do need to find a stronger parent than DT.

My company is currently with Sprint and we really want to get out. I was preparing a quote for a new year transition to T-Mobile. If this is really on the RADAR then it looks like it will all be for naught. Sprint WILL destroy T-Mobile and put their crappy management and policies on T-Mobile. Add to that their incompatible 2G and 3G technologies and one can be pretty must guaranteed it will be another Nextel fiasco.

One can only hope the government will block such an acquisition but I seriously doubt that will happen in this case. Plus I would not be surprised if Verizon and/or AT&T were working behind the scenes to get this to happen. It would be better for them with the loss of T-Mobile's aggressive new attitude.

I just switched to T-mo at the iPhone 5s launch to get away from sprint. 3G never worked in a year would imidiatly drop to "O" and LTE wouldn't open a page with full bars on 2 different phones. Capacity in houston sucks

Was with Sprint for 15 years. They lost their way long, long ago, and all indications are they've lost it permanently. T-Mobile, on the other hand, is rockin' some serious industry disruption.

All I can see happening from the acquisition of TMO by Sprint is the crushing of what little innovation there is in the U.S. wireless market.

Jim

I keep reading this, but why isn't T-Mobile stock skyrocketing? It shot up when rumors first began, but if it's almost final, shouldn't it be going up more? Sprint stock is increasing more than T-Mobile! Shouldn't T-Mobile be up over $35 if in fact the final stages are here?

What if the deal is at $35/shr? What if nobody believes this deal will pass regulatory hurdles?

Sprint has been terribly managed for a long time now and any merger using their management would be equally disastrous. Sprint has only had Verizon/AT&T envy, adopting their anti-consumer policies except without the service to back it up.

T-mobile wasn't doing great either until they got the new CEO in Legere who has been kicking ass left, right and center. They got LTE up and running across their footprint faster than everyone else, while Sprint is still lagging far behind despite announcing their plans earlier. And they easily have the best pricing plans outside of MVNOs.

Yeah Sprint may give us low prices at the beginning, then who knows what's going to happen next.

Still very spotty but where it is I am happy. Do not pull speed tests all the time but just use it and it works.

It wasn't long ago there was page after page of comments here saying how great SoftBank was and how this will be the best thing ever for the US. Not so much these days when it comes to tmo.

You are all missing the fact that AT&T and Verizon will continue to do whatever the hell they want, get first (and usually exclusive!) picks of new devices, keep scaling down user bandwidth and stay away from unlimited voice/data plans altogether for as long as there is no formidable #3 player. Sprint & TMO DO need to merge for that to change! And as for crappy management, Sprint is still the only carrier with an unlimited voice/data plan, which is why we've stayed with Sprint. When I was with AT&T (from my 1st cell till about 8 years ago) they made it excruciatingly clear that they didn't give a hoot about me as a customer and were constantly coming up with new ways to use their market power -- NOT for better service -- but rather to screw me over, which is why I switched to Sprint in the first place. Also, during the aftermath of Hurricane Katrina, Sprint allowed us to temporarily change from the decimated '504' area code to another area code so that we could actually use our phones and then switch back 2 months later when the 504 network was restored. When we suggested that friends & family on AT&T/Verizon ask for a similar deal they were literally laughed at and told to be patient. At one point I actually switched to AT&T for a month, thinking that the coverage might be better here, but switched back before the end of the 30-day trial period b/c the problems were so profuse -- and so totally bizarre -- that there was no way I could continue under those circumstances. You want to talk about crappy management? In my book, management greed and indifference trumps crappy management every time!

It's not the people who work with the Customer who are making these bad choices.I've had people go out of there way to save me money or fix something. It's upper management that is being greedy and trying to be like AT&T.

If they do acquire T-mobile this is what Deutsche Telekom in the end wanted from the get go. With Sprint as the management side goes you can kiss all these plans and great stride from John Legere goodbye. I was originally a Nextel user and when Sprint bought them my costs almost doubled. The network was solid until hurricane Wilma in 2005 (might be wrong on year) came through and the coverage sucked after that. I transitioned over to CDMA with better speeds and coverage but in the end was paying $70 for 450 minutes with unlimited data and text for one line alone.

If I was to have my Nexus 7 device with Galaxy Nexus and a HTC One S on a Sprint plan I would have a increase of $90 additional just to get something comparable to T-mobile's current offering.

What a joke and to insult the user base intelligence they go ahead and offer a $20 unlimited calling for Home connect. I will switch over to Verizon and I hate Verizon.

And here I was about to ditch Verizon and switch to TMo. Verizon's suckiness is unmatched, and I'd be glad to kiss them goodbye. You have to be pretty bad to lose an unlimited, grandfathered customer.

Sprint adding more debt, to buy t-mobile, would be a disaster in so many ways.

Sprint management is a freaking disaster, falling/failing fast.. I consider them to be voice, text, and 2G data provider only.. nothing more..

T-mobile's star is rising fast... A true disruptor among the cell phone providers around the world. Just look at their new international roaming.. nobody else comes even close.. On the low cost side, nobody else offers a prepaid $30/mo.. 100 min voice, unlimited txt, 5GB of 4G, unlimited 2G...

All that new debt would sink both ships.. someone has to pay for it.. huge price increases would be the norm. In the end, the new Sprimobe would go bankrupt, and end up in the creditors hands, who would sell off all the bits to Verizon, AT&T. Leaving US customers in the hands a of nasty duopoly.

Bad news for everyone concerned and especially bad news for T-mobile customers.