dslreports logo
site
 
    All Forums Hot Topics Gallery
spc

spacer




how-to block ads


Search Topic:
uniqs
517
share rss forum feed

MaynardKrebs
Heave Steve, for the good of the country
Premium
join:2009-06-17
kudos:4

The deal won't be pulled by AT&T...

..... until they have added to the damage that they have already done to T-Mobile.

TMO has been bleeding customers, in part due to throngs not wanting to become customers of the Deathstar.

TMO becomes a better competitor the minute it gets AT&T's breakup-fee cash & spectrum (and maybe an AWS iPhone model), so AT&T will stall the inevitable announcement of a dead deal for as long as possible for those reasons.

Hopefully TMO will then sue AT&T for some anti-competitive behavior once the check clears the bank.

firedrakes

join:2009-01-29
Arcadia, FL

1 recommendation

overall still its funny but i am happy it happen. about dam time


philyew

@consolidated.net
reply to MaynardKrebs
Don't cry too hard for TM. They were bleeding customers before the AT&T deal was ever contemplated.

Also, the compensation package, if the deal fails, goes directly the Deutsche Telekom and does not have to be used in the interests of the TM USA business.

From the moment that TM failed to participate in the last round of the spectrum auction that led to the 700 mhz frequency being distributed for LTE deployment, it was clear that Deutsche Telekom (DT) had no long term strategy for TM USA and were only interested in setting the company up for sale/merger. Without that spectrum, TM USA have no route to compete with the leading carriers as they shift to delivering both data and voice over full 4G bandwidth.

Forget about the compensation package helping TM USA to recover from 2+ years of declining subscriptions. DT want the money from the sale to go to support their European operations. They've already said so.

Even with the situation regarding AT&T clarified, Apple will probably not agree to the release of an iPhone model with the required AWS (1700/2100) frequencies because the status of TM USA will remain deeply uncertain. In fact, its viability without AT&T or the compensation funds will become even more precarious until another adequate buyer steps up, which can not only meet DT's revised asking price, but also show the wherewithal to invest in the critically overdue network upgrade that will keep TM USA competitive as the rest of the top tier evolve into LTE.

said by MaynardKrebs:

..... until they have added to the damage that they have already done to T-Mobile.

TMO has been bleeding customers, in part due to throngs not wanting to become customers of the Deathstar.

TMO becomes a better competitor the minute it gets AT&T's breakup-fee cash & spectrum (and maybe an AWS iPhone model), so AT&T will stall the inevitable announcement of a dead deal for as long as possible for those reasons.

Hopefully TMO will then sue AT&T for some anti-competitive behavior once the check clears the bank.


clone

join:2000-12-11
Portage, IN
Reviews:
·T-Mobile US
said by philyew :

Even with the situation regarding AT&T clarified, Apple will probably not agree to the release of an iPhone model with the required AWS (1700/2100) frequencies because the status of TM USA will remain deeply uncertain.

Oh bullshit. Apple is just extorting money out of the Big 3 to keep it away from TM USA. AT&T probably paid extra to keep the AWS bands out in hopes TM USA customers would clamor for the buyout to be approved. The iPhone 4S chipset supports 1700/2100, and while it may not have the necessary amplifiers/antennas tuned for that frequency (or it may, I'm no RF engineer), given the number of iPhones in use on carriers with much more uncertainty than DT in banana republics across the globe, DT is a pretty safe bet in comparison.


philyew

@consolidated.net
DT are running T-Mobile USA as a "discontinued operation"..check out their half-year financial report for details. They have made it abundantly clear that they are done with the US market as an operator.

How that progresses for TM USA will be deeply uncertain without AT&T. TM USA is a company which is on the brink of falling out of the leading group of carriers because, without a takeover by a major spectrum holder, they have zero capability to take the next step to LTE.

Even though AT&T's compensation package contains unspecified spectrum, that package goes directly to Deutsche Telekom to use and dispose of at their discretion. None of it need be used for the long term benefit of TM USA unless it clearly profits DT to do so more than direct disposal would do.

AT&T conspiring in hopes that "TM USA customers would clamor for the buyout to be approved"? Really? Comscore have just published the latest count of the number of mobile subscribers in the USA using the iPhone. After years of penetration into the AT&T market, after almost a year of availability with the largest cell service provider, Verizon, and a month of Sprint users eagerly snapping up their first opportunity with the device, less than 11% of mobile subscriptions in the USA use the iPhone.

Take a look at the T-Mobile user forums - with over 150,000 registered users, there are less than 100 posts on the topic of the iPhone not being available. Some clamoring...

Why on earth would Apple be working to keep the iPhone away from TM, if they thought the future was viable, when they have just released it not only to Sprint but also C Spire (formerly Cellular South) - a company primarily serving Mississippi, Alabama and limited parts of Florida, Tennessee and Georgia?

sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1
said by philyew :

AT&T conspiring in hopes that "TM USA customers would clamor for the buyout to be approved"? Really? Comscore have just published the latest count of the number of mobile subscribers in the USA using the iPhone. After years of penetration into the AT&T market, after almost a year of availability with the largest cell service provider, Verizon, and a month of Sprint users eagerly snapping up their first opportunity with the device, less than 11% of mobile subscriptions in the USA use the iPhone.

Take a look at the T-Mobile user forums - with over 150,000 registered users, there are less than 100 posts on the topic of the iPhone not being available. Some clamoring...

Why on earth would Apple be working to keep the iPhone away from TM, if they thought the future was viable, when they have just released it not only to Sprint but also C Spire (formerly Cellular South) - a company primarily serving Mississippi, Alabama and limited parts of Florida, Tennessee and Georgia?

This is quite misleading. Everyone knows the money is in smartphones. The iPhone may have "only" 11% of all mobile subscriptions, but when it comes to 2 year contracts nothing even compares. T-Mobile didn't get the iPhone because they weren't willing (or able) to pay Apple's incredibly high prices. Sprint felt it was a necessary investment to shore up their base, and Dan Hesse convinced the white knuckled board to drop $20 billion on iPhones.

C-Spire wants to transition to a high-margin smartphone carrier and responded to its most frequent customer requests.


philyew

@consolidated.net
I'm not sure what you are saying is misleading. I'm not talking about smartphones in general, although they still do not represent the majority of devices servicing the mobile phone subscriber base.

The part of their income that carriers care most about is their contract revenue. Given that they can get the data component of that revenue from a Blackberry, Android, Windows or iPhone device there is no special reason why selling an iPhone is any more effective than any other smartphone. Of course, carrying the iPhone does prevent contracts going elsewhere because of the customer's specific desire to own one...but that is where the significance of the 11% penetration comes in.

I was simply saying that the previous poster's argument (ie. AT&T probably paid to prevent TM from getting the iPhone to influence TM customer opinion in favor of the deal) did hold up to scrutiny.

There is nothing misleading about the dearth of comment about the iPhone in the TM forum. Frankly the absence of posts surprises even me.

You are right that Apple were asking more than TM were able to pay. Because DT are running TM USA as a "discontinued operation", they can't put up more money to buy into the iPhone than can be recovered over the remaining period of their ownership. Apple clearly can't/won't accommodate that limitation, which is a more accurate way of characterizing their issue with TM's future.