dslreports logo
site
spacer

spacer
 
   
spc
story category
CenturyLink Not Interested in Sprint
At Least For the Time Being
by Karl Bode 08:41AM Monday Aug 15 2011
Sprint spun out their wireline unit as Embarq in 2006, and Embarq eventually merged with CenturyTel to become CenturyLink. For much of the year rumors have persisted that as a counterpunch to the inevitable AT&T T-Mobile deal, CenturyLink might be interested in acquiring Sprint -- who'll be left with just 17% of the wireless market after the deal. For what it's worth CenturyLink says they're simply not interested in Sprint. Or at least for the time being, as the company tries to digest the Qwest and Savvis acquisitions. "We're not even thinking about it right now," says CenturyLink CFO Stewart Ewing. "Our focus is on integrating the Savvis and the Qwest acquisitions and really doing a good job before us today based on the platform we have." At the moment CenturyLink's struggling with the Qwest acquisition, as debt drags down earnings, and sluggish DSL service in the face of faster cable options results in slow broadband growth.

view:
topics flat nest 

FFH5
Premium
join:2002-03-03
Tavistock NJ
kudos:5

1 edit

Is Sprint even a candidate for a takeover?

I wasn't aware that Sprint was a candidate for a takeover. Recent news indicated that Sprint was more interested in taking over Clearwire(or at least their assets) and maybe pulling off a merger with the not born yet Lightsquared.

--
Record your speedtest.net results in DSLReports SpeedWave
»www.speedtest.net/wave/afe201cb84d45c88

dib22

join:2002-01-27
Kansas City, MO

Re: Is Sprint even a candidate for a takeover?

sprint only recently lowered it ownership in clear to less than 51%... 2 months ago they had controlling interest.
talz13

join:2006-03-15
Avon, OH

Re: Is Sprint even a candidate for a takeover?

But the other rumor said that they're waiting for clearwire to fail so that they could scoop up the assets for cheap, by not being the majority owner anymore?

battleop

join:2005-09-28
00000

Comcast or Centurylink...

Centurylink has been on a buying spree lately but Centurylink doesn't really need Sprint for the sake of competing since ILEC's don't mess with each other. It seems like Comcast would get more use out of taking over Sprint to compete against Verizon and AT&T.
openbox9
Premium
join:2004-01-26
Germany
kudos:2

Re: Comcast or Centurylink...

But, CenturyLink doesn't have a wireless arm, which is where the revenue growth is at for the foreseeable future. I don't believe CenturyLink is in a position to acquire Sprint, but it does need to develop a wireless capability of some sort. Comcast would be a benefactor to an acquisition of Sprint as well.

battleop

join:2005-09-28
00000

Re: Comcast or Centurylink...

From a competitive stand point Centurylink does not have to have a wireless arm. They don't really compete with AT&T and Verizon except for in a few markets as a CLEC.

Comcast in the other hand does go head to head with AT&T and Verizon in many markets. It would make more sense for Comcast to pickup someone like Sprint since they would bring their wireless division to market on a nationwide scale with a merger.

I was told by an AT&T VP that they do not see Comcast as a threat because Comcast can't offer a Quad Play.
openbox9
Premium
join:2004-01-26
Germany
kudos:2

Re: Comcast or Centurylink...

So CenturyLink's wireline footprint doesn't have access to Verizon or AT&T wireless service? As more and more people drop POTS in favor of wireless, I'd suggest that CenturyLink is in need of a wireless business.
willzzz

join:2007-05-23
SE MI

Re: Comcast or Centurylink...

CenturyLink has a global wholesale network in the USA and worldwide now of network nodes GLOBALLY /w the Savvis purchase.

They are more interesting in selling WHOLESALE the GigE back-haul link from VZW's LTE cell sites to their core network than sell consumer services.

Sometimes that is profitable $$$.

You don't have to be customer facing to make money in wireless/mobility.
iansltx

join:2007-02-19
Austin, TX
kudos:2
Reviews:
·Time Warner Cable
·Verizon Online DSL
All those wireless companies have to backhaul their traffic somehow. With CenLink as the nation's third-largest ILEC (by subscribers...I'll bet they're the largest by land area covered) they'll get plenty of money from wireless backhaul deals, as long as they can pull fiber to the towers where ILECs want it.

Cable companies don't have wireless arms either, but they are doing quite well with triple plays (Clear isn't contributing much from what I hear). If CenLink can start serving up Prism TV over Qwest's VDSL network, they'll be able to effectively compete with cable for the triple play. If they bond ADSL2+, they can offer reasonably fast internet speeds (15-25 Mbps down, 1-2Mbps up) and TV over that. If they pull fiber to more rural COs, they can turn 1.5 Mbps DSL into that same 15-25 Mbps bonded ADSL2+, again with TV. At which point they won't have much to worry about.
openbox9
Premium
join:2004-01-26
Germany
kudos:2

Re: Comcast or Centurylink...

said by iansltx:

All those wireless companies have to backhaul their traffic somehow. With CenLink as the nation's third-largest ILEC (by subscribers...I'll bet they're the largest by land area covered) they'll get plenty of money from wireless backhaul deals, as long as they can pull fiber to the towers where ILECs want it.

Plenty of money? Not as much as if CenturyLink were retailing its own wireless service.
said by iansltx:

Cable companies don't have wireless arms either

But they want one. Distributing pay TV through traditional means will be a dwindling market in the relatively near future, not much different than POTS currently.
said by iansltx:

If they pull fiber to more rural COs, they can turn 1.5 Mbps DSL into that same 15-25 Mbps bonded ADSL2+, again with TV. At which point they won't have much to worry about.

Wow, you're optimistic.
iansltx

join:2007-02-19
Austin, TX
kudos:2

Re: Comcast or Centurylink...

Optimistic? I said if, not when...
WhatNow
Premium
join:2009-05-06
Charlotte, NC
Reviews:
·Time Warner Cable

Re: Comcast or Centurylink...

There is a strong rumor Centurylink may buy the BellSouth landline division so at&t can be a pure wireless company. Sometimes not owning the backhaul gives you more leverage. You can cry to whoever with your lawyers but if you goof up within your own company who can you blame.

The Beer
I Love It When A Plan Comes Together
Premium
join:2001-07-24
Atlantic, IA

1 recommendation

Well nevermind then

Well I guess we don't ever have to worry about this then because if they are waiting to "do a good job" it's never going to happen.
primeomega

join:2004-03-11
De Pere, WI

Good old days

I remember selling CenturyTel wireless back in the day. 3 year contracts where there normal and the good old $10 for 100 min plan. Would be funny to see it turn a full circle and come back.

GoodDog

join:2000-07-03
Goshen, NY

Really ?

McDonalds not interested in GM

A McDonalds spokesmen said today McDonalds the world largest hamburger chain is not interested in purchasing embattled auto maker GM. Rumors were flying around that McDonalds was pursuing GM in an all French fry deal valued at $305,000.

linicx
Caveat Emptor
Premium
join:2002-12-03
United State

Re: Really ?

GoodDog: Priceless.
The Beer: Agreed
Century Telephone aka CenturyLink has great PR and LARGE promises for the unsuspecting home user.
--
Mac: No windows, No Gates, Apple inside

OSUGoose

join:2007-12-27
Columbus, OH
What are the synergies in the fat ass/fast food user demographic, imagige driving your GM car, being able to pull up a touchscreen to order McD's , pay for it with you Shitybank Visa and get GPS directions where to pick up said food and use awsome Kabletown HiFi WiFi? Vertical Integration FTW!
ydoucare

join:2003-03-12
Lafayette, IN
Reviews:
·Frontier Communi..

Centurylink is a joke of a company.

Centurylink can't even manage themselves. I would laugh if they tried to acquire Sprint, then promptly dump my Sprint service, because as soon as this company took over my DSL, it went to HELL. Been trying for a year just to get decent 1.5/512 service here. They're sure as hell willing to oversubscribe their DSLAMs and piss their customers off, but will only do something about it if you complain about it enough over the course of a YEAR.