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DOJ 'Skeptical' About Approving Sprint, T-Mobile Deal
by Karl Bode 02:11PM Wednesday Jan 29 2014
According to the Wall Street Journal, Sprint CEO Dan Hesse and SoftBank's Masayoshi Son recently met with Department of Justice officials and were greeted with a significant amount of "skepticism" over the value of letting Sprint acquire T-Mobile. Sprint, who just a few years back cried ceaselessly that four competitors were necessary for a healthy market, is planning a series of meetings with lawmakers to pave a path for a possible merger. Sprint majority owner SoftBank and T-Mobile majority owner Deutsche Telekom remain in talks about the specifics of the deal, including possible breakup fees and what to name the potentially-merged company.

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masterbinky

join:2011-01-06
Carlsbad, NM

Name it

Movable Dash

or go for the opposite of what people would think like stationary walk.

WiFiguru
To infinity... and beyond
Premium
join:2005-06-21
Irvine, CA

Stop it!

How about you don't buy T-Mobile...

We really need four carriers in the US. Competition is a must. If AT&T couldn't buy T-Mobile, why is the DOJ even considering Sprint + T-Mobile?
antonio010

join:2002-11-24

Re: Stop it!

CJ90006

join:2004-10-05
Los Angeles, CA

Re: Stop it!

Seriously Sprint, leave TMOB the hell alone!
xenophon

join:2007-09-17

Re: Stop it!

But it's DT who wants out and Sprint is only plausible player outside maybe Dish.
CJ90006

join:2004-10-05
Los Angeles, CA

Re: Stop it!

I know, it's a shame. I like DT. I think T-Mobile is unique compared to the other carriers. Would hate to see them bought out.
shmerl

join:2013-10-21
May be DT can sell it to independent investors? Then T-Mobile can preserve its own identity.
xenophon

join:2007-09-17

1 edit

Re: Stop it!

said by shmerl:

May be DT can sell it to independent investors? Then T-Mobile can preserve its own identity.

Possibly, but usually with indie investors, they position to restructure company for a sale later anyway, sometimes in chunks.

Tmobile is being disruptive but could be a losing biz model long term.
xenophon

join:2007-09-17
Seems like DT still wants out of US market or at least not be primary holder. The Feds probably want to hold out and see if Dish or someone else steps up to buy Tmob, but if no one else does, I could see the Feds allowing Softbank/Sprint to - not this year but maybe 2-3 years.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: Stop it!

I don't think that's necessarily true anymore.

dnoyeB
Ferrous Phallus

join:2000-10-09
Southfield, MI
Just spin it off. Do they have to sell it to somebody? And to somebody already in the market?
xenophon

join:2007-09-17

Re: Stop it!

They need a capital boost to improve and compete in future. Spinning off wont allow them to fund future needs and they lose economy of scale from DT. They need someone who can invest into future. Dish probably would not be able to fund improvements, Sotfbank could but Feds likely want to wait for someone else to step up. If no one does, could see Feds allowing Sprint to merge in a couple more years but not this year.

Mr Guy

@charter.com

1 recommendation

said by WiFiguru:

How about you don't buy T-Mobile...

We really need four carriers in the US. Competition is a must. If AT&T couldn't buy T-Mobile, why is the DOJ even considering Sprint + T-Mobile?

Let me know when we actually have 4 national carriers. T-Mobile ignores 35% of the US population. Hardly what I call "national". Sprint isn't a whole lot better. COMBINED you actually have a TRUE 3rd national carrier with boatloads of spectrum. Right now you have 2 national carriers and 2 sort of national carriers.

Verizon can ignore T-Mobile because they already know 35% of their customers couldn't switch to T-Mobile even if they wanted too. Much of the 65% that can get T-Mobile service is either poor or T-Mobile doesn't have service in some of the areas they frequently use their phone outside their home so they aren't switching either. T-Mobile simply doesn't care about people outside the big cities and never will.
xenophon

join:2007-09-17

Re: Stop it!

Now that Sprint can rollout 800Mhz (from iDen shutdown), they do plan to expand to rural areas where they can within 2 years. Tmobile bought some 700Mhz spectrum, but not sure if in rural areas.

CaptainRR
Premium
join:2006-04-21
Blue Rock, OH
Reviews:
·Verizon Wireless..

Re: Stop it!

I wouldn't hold your breath waiting for Sprints rural coverage. There are a few former rural Nextel towers around me and they are stripped bare. Used to have decent Nextel coverage around here and now you have to drive 15 miles north of me to even think about getting Sprint service and that is only because of interstate 70. Sprint pretty much has the same coverage they had 10 years ago around here and many other parts.
nonymous
Premium
join:2003-09-08
Glendale, AZ
said by xenophon:

Now that Sprint can rollout 800Mhz (from iDen shutdown), they do plan to expand to rural areas where they can within 2 years. Tmobile bought some 700Mhz spectrum, but not sure if in rural areas.

Maybe expand some. Doubt to any Verizon type level.
xenophon

join:2007-09-17

Re: Stop it!

Well Sprint didn't have the spectrum available, now available. Then didn't have the cash, now $16B pumped in by Softbank. And Softbank has the desire, saying they plan to eventually match VZW (backed by funding). So the pieces are in place but execution is the question.
nonymous
Premium
join:2003-09-08
Glendale, AZ

Re: Stop it!

Match Verizons network but not necessarily footprint.
TBBroadband

join:2012-10-26
Fremont, OH

Re: Stop it!

And most likely price since prices have not changed to even be a true threat.

delusion ftl

@comcast.net
It's not as simple as that. Verizon cannot be profitable on that 35% because the network cost per user in rural areas is higher. So if you think verizon doesnt care if t-mobile takes a reasonable portion of their urban customers, you are wrong. Verizon loves their urban customers because they pay tons of money (comparatively) and nearly all of them ever use (put a strain on) the rural markets.
Meaning: Most Verizon customers never use "Verizon coverage"

Look at verizon's new york customers. Verizon was like the last carrier to cover the subway terminals. Yet these verizon subscriber/fans would crow about how if they ended up in the middle of upstate NY (which they rarely or never visit), or nowhereville south dakota on edge they would die. Yet in their own day to day use where they lived, verizon was not necessarily the best carrier. Sprint users do much of the same. I think 50% of sprint customers use(d) an airrave. It's staggering the amount of stuff people will put up with to stay loyal to their favorite team (carrier).

Inevitably, a carrier fan will reply with something like... "but *I* need the coverage". That's great, but dont pretend that the other 100 million lines on ATT or VZW are in the same boat as you are. If you truly need VZW coverage then you should be extremely grateful that the vast majority of the fellow subs that dont need it, are willing to pay what it takes to cover your area.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: Stop it!

Verizon wireless has a profit margin of 50%. Flat rural areas with low population density requires towers spaced tens of miles away from each other with 700 MHz spectrum. Verizon is most likely profitable even in rural areas.

The Ace

@63.142.161.x

Re: Stop it!

OK Verizon does have one Tower in MT that have an average of 0 Clients on it. Show me the profit in that!

WiFiguru
To infinity... and beyond
Premium
join:2005-06-21
Irvine, CA
Reviews:
·DSL EXTREME
said by Mr Guy :

said by WiFiguru:

How about you don't buy T-Mobile...

We really need four carriers in the US. Competition is a must. If AT&T couldn't buy T-Mobile, why is the DOJ even considering Sprint + T-Mobile?

Let me know when we actually have 4 national carriers. T-Mobile ignores 35% of the US population. Hardly what I call "national". Sprint isn't a whole lot better. COMBINED you actually have a TRUE 3rd national carrier with boatloads of spectrum. Right now you have 2 national carriers and 2 sort of national carriers.

While everyone is a fanboy for their carrier... I do agree AT&T and Verizon absolutely rock.

But as an Enterprise T-Mobile customer, T-Mobile blows Sprint away in coverage. T-Mobile has coverage in all of the areas I travel. Sure, they might be 2G areas, but it is still native T-Mobile coverage. Can still make calls/texts.

buddahbless

join:2005-03-21
Premium
Reviews:
·AT&T DSL Service

Re: Stop it!

I find that to be very true there are areas that my friend and I traveled from chicago to orlando and off the beaten path there sprint phone had no coverage while i still had 2g coverage. Yet while on major highways sprint streamed pandora just fine no matter where we were yet on tmo in 2g areas it was quite iffy.

Tsume
Premium
join:2004-02-23
Johnson City, TN
Reviews:
·Comcast
Even combined Sprint + T-Mo are still smaller than AT&T or Verizon individually. I don't want to see the US become like Canada, though. I would think this would only work if they agree to continue running the entities separately.
--
to whoever anonymously gave me premium membership... thanks!
nonymous
Premium
join:2003-09-08
Glendale, AZ

Re: Stop it!

said by Tsume:

Even combined Sprint + T-Mo are still smaller than AT&T or Verizon individually. I don't want to see the US become like Canada, though. I would think this would only work if they agree to continue running the entities separately.

Running entities seperately would not allow most synergies.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Stop it!

The synergy I have with my wallet is just fine with that.

delusion ftl

@comcast.net
And this is important to note. It's not the same as when verizon was buying alltell (or ATT buying Alltell) other smaller regional carriers that actually had a footprint not already covered by verizon/ATT. T-mobile and Sprint cover nearly the same areas.
TBBroadband

join:2012-10-26
Fremont, OH
The DOJ needs to tell Sprint what they claimed with AT&T. We need 4 carriers. And then send them packing.

cork1958
Cork
Premium
join:2000-02-26
"If AT&T couldn't buy T-Mobile, why is the DOJ even considering Sprint + T-Mobile? "

Enough said!
--
The Firefox alternative.
»www.mozilla.org/projects/seamonkey/

SteelerRaw

@72.5.190.x
said by WiFiguru:

If AT&T couldn't buy T-Mobile, why is the DOJ even considering Sprint + T-Mobile?

Probably because it's apples and oranges and your assessment of the situation is overly simplistic. A carrier with 100+ million customers trying to buy T-Mobile is an entirely different proposition than a carrier with 53+ million subscribers trying to buy them.
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS

anti consumer

basically it is to be the end of competition and so-called unlimited data plans-- which for most purposes are internet access evolved from "web access" which was a primitive evdo & earlier versions of internet access which did not need high speed bandwidth.

just about NONE of the transitions we've seen since 2006 have done anything good for the consumer, except prepaid wireless which put the contract based industry on notice that consumers do not want (by enlarge) to be tied to a contract and overpriced services

how so many industries think they can offer prices in the way that oil companies do is takes a huge PAIR...
BiggA

join:2005-11-23
EARTH

Technological mess

Nextel was bad enough. This would be a TOTAL disaster. AT&T&T actually made technological sense. This doesn't at all.

••••••

WiFiguru
To infinity... and beyond
Premium
join:2005-06-21
Irvine, CA

Digicel.

Why can't we get Digicel or some other company in for T-Mobile.

Softbank has Sprint. Leave T-Mobile alone.

buddahbless

join:2005-03-21
Premium
Reviews:
·AT&T DSL Service

No merger. however let them share.

I really hope the doj. Fcc. Etc all say no way to a merger, but if the two want to share expences and share towers where one currenty has coverage but the other does not or expand and build towers in rural areas that both would share space and the fiber pipe to lower there depoyment cost yet keep there cellular transmissions on seperate bands and thats all that would we shared that would / should be aproved by uncle sam.

David
hours are m-th 1130-10p central
Premium,VIP
join:2002-05-30
Granite City, IL
kudos:98

if both parent companies are outside the U.S.

Does the DOJ really have a say in the matter? technically couldn't the company change hands/owners in europe anyway?

•••••••

Mav

@sbcglobal.net

Acquisition approval

Skeptical just means that....

It's not a definite no by any means but moreover a optimistic YES!

Having 3 nationwide carriers vs only 2 is far better and if Dish is part of the negotiations being that Sprint is already in business with them then the skepticism is just an formal show. Dish could merge as the 4th wireless carrier.

It'll pass......