The Truth Could Kill the AT&T T-Mobile Deal > If it doesn't go through then what?

If it doesn't go through then what?

They have a controlling interest in T-Mobile USA. T-Mobile USA is profitable the last time I checked. Why would DT want to get out of the US market? If they were so eager to get out of the market then why did AT&T have to bid so high for T-Mobile USA?

The one that confuses me is why Vodaphone sticks around. They have no control at all over Verizon Wireless and Verizon has repeatedly expressed a desire to buy them out. I would see Verizon buying them out before I'd see them going after Sprint, regardless of whether or not the T-Mobile/AT&T deal goes through.

reply to xenophon

reply to Crookshanks
Right, I was aware of DT having controlled interest of Tmob but if they merge with Sprint, analysts are saying the Feds likely wouldn't allow DT to have controlling interest of Sprint for various reasons.

If the ATT deal doesn't go through, DT might dump off Tmob to either Sprint or possibly Google and get out of US market. Tmob likely won't be going it alone at this point.

reply to Alcohol
I don't know if it's true (I'd lean probably not) but there were rumblings on Wall St that Google did make an offer for Tmob and ATT offered much more.

reply to Crookshanks
If DT really wants to get out of the USA market and this deal bombs out, I would like to see Vodafone dumping its share in Verizon and nabbing up T-Mobile. I think Vodafone would be more likely to stick around and create a market/bring some of the european practices within the US.
thas my 2 cents.
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Chirag's Website

reply to xenophon
Doubt anybody would want to touch the big, hot mess that is Sprint/Nextel. Right now they have such a huge debt load that anybody who buys them would be stuck with a network that is extremely aged, lots of long-term contracts they can't get out of (goverment, etc), one of the largest telecom lawsuit resolution cases in US history (800 Mhz rebanding for public safety radios), and a shrinking customer base. Sprint/Nextel still runs two competing networks and has no plans to merge or migrate either network.

On the latter two parts.. Sprint is not shrinking anymore and they do now have a specific plan to get off iDen , which will execute starting later this year.

As far as the debt, yeah, who would want that. It's $14B. That's why it's likely Sprint would otherwise acquire/'merge' with Tmob, and no one acquiring Sprint.

reply to xenophon
Why is Google always mentioned when it comes to buying a carrier? Google has no interest in running anything. You have a better chance of someone like MS, Apple, or even Netflix becoming a WISP.

If it's true that Google made an offer for Tmob before ATT outbid them, that would be why.

reply to xenophon
BTW, Sprint is hiring the CFO from Qwest, who specializes in mergers. He was specifically hired by Qwest to handle the merger. Sprint is getting him as soon as the Qwest/Centurylink deal closes.

Sounds like Sprint is seriously looking to make some kind of move for real this time.

reply to quetwo
Uh, just to show how much you don't know, Sprint gained customers last quarter.

Most everything else you said is equally wrong.

reply to StBrandon

reply to cchhat01
T-Mobile seems to bring some European practices to the US. They are the only carrier that makes it easy for you to sign up without a contract. They are considerably cheaper than the other three and don't lock down their phones or cripple any of the features contained within them.

For the life of me I can't figure out why DT would feel a compelling need to exit the US market. Are they hard up for cash or something? T-Mobile USA would seem to be a cash cow and it's got nowhere to go but up.

Vodaphone would be a logical choice though if DT really does want to exit the market. Verizon wants full ownership of VZW (or should I say the cellco partnership?) badly enough that I bet they'd pay handsomely for it. That money could then be used to buy T-Mobile USA. Seems like a win-win for everybody and a much better option than allowing AT&T to assimilate the last remaining budget priced national carrier.

But what do I know....

reply to Transmaster
As bad as Google screwed up the whole "after the sale" customer support with my Nexus 1, I'd just as soon they stay out of the wireless market. Not that I needed it, but I read enough horror stories about the average Joe not getting any kind of help from them.

If Google were to buy any company that requires customer service, they should just do it as a holding company (that can influence google services) and not directly operate it. They are not customer service oriented company at all.

With the Google Gb Net thing in KC.. they apparently plan to let ISPs ride on top of it and let them handle the customer service. TWC used to do this, offering RoadRunner, AOL and I think Earthlink.

reply to Crookshanks

reply to xenophon
IF. Big IF there. I guess you believe they actually wanted that spectrum they inflated the price of as well? Sorry dude, Google doesn't care to run anything where they have responsibility to provide any kind of support.

reply to Transmaster
I doubt Apple would do it as well. It was just an example of a rich company that came to mind.

reply to xenophon
Sprint has had plans for YEARS now (5) to get rid of iDEN only to end up keeping it around. The fact is Sprint is in no hurry in getting rid of anything and the only thing going around by many many people (including quotes that are miss quoted- on purpose) is rumors. Sprint has never said anything about pulling out of Clear- which many claim; especially on here. Sprint has NEVER said anything about going to LTE- which again- claims again which are from "sources that are ALWAYS wrong at Sprint. Sprint is in no hurry to do anything and is only making the move to small base stations to save $$$$ when powering them. They also can move much of the operations back to a data center instead of having active equipment in the field doing all the work.

When Sprint moves away from iDEN Hell will freeze.