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Rumor: Deutsche Telekom Considering Sprint Purchase
A move that would give the German carrier a majority of the U.S. wireless market
Sprint has faced a lot of difficulties in the last year, difficulties which CEO Dan Hesse says are “fixable” but which have left the company in a tight spot. There are rumors floating around that one company which might be interested in helping Sprint out of that tight spot is Deutsche Telekom. The German telco owns T-Mobile (the nation’s fourth largest wireless carrier); an acquisition of Sprint (the nation’s third largest carrier) could potentially move the company into the number one spot for most wireless subscribers in the United States. However, it is unclear whether the company is talking about an acquisition or a merger - and rumor has it that they may not even be talking with Sprint but rather just thinking about the possibilities. Even if the intentions are serious, there could be problems from both the U.S. and Germany about allowing a German company to take over so much of the U.S. wireless market.
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pnh102
Reptiles Are Cuddly And Pretty
Premium Member
join:2002-05-02
Mount Airy, MD

pnh102

Premium Member

Sprint? Get Real!

Does Deutsche Telekom want a US taxpayer bailout too? They'd be better off trying to buy rotten eggs instead, as they'd get a better return.

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5

Premium Member

Re: Sprint? Get Real!

The news item also points out why this takeover might be unlikely:
However, analysts have said an acquisition of Sprint may be a difficult operation because it has been running two networks which are different from T-Mobile's GSM infrastructure

pnh102
Reptiles Are Cuddly And Pretty
Premium Member
join:2002-05-02
Mount Airy, MD

pnh102

Premium Member

Re: Sprint? Get Real!

Funny you mention that... that minor technicality didn't stop Sprint from taking over Nextel and consequently ruining it.

old_dawg
"I Know Noting..."
join:2001-09-22
Westminster, MD

old_dawg

Member

Re: Sprint? Get Real!

said by pnh102:

Funny you mention that... that minor technicality didn't stop Sprint from taking over Nextel and consequently ruining it.
Nextel didn't any help from Sprint to achieve that!
stufried
Premium Member
join:2003-10-13

stufried to FFH5

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to FFH5
Sprint has had a tough time swallowing Nextel. If TMobile took over Sprint, they would be best keeping the two technologies seperate and doing the merger at the 4g point where there actually is a point of convergence.
Mechano
join:2004-05-30
Antarctica

Mechano to pnh102

Member

to pnh102
Sprint won't be around for another year or so. They are laying off people next month as well, and also in December (I wonder who's gonna be left there). Some one will have to buy it. ATT is up to their eyeballs in debt after so many exec retirement packages, mergers, freq. acquisition, etc. Verizon, too - spectrum, and global slow down (see Vodafaone chunk). T-mobile and the German govt. (Deutsche Post) have deep pockets. Now, what they do with the IS95B? Roll it over to UMTS, simple !

tc1uscg
join:2005-03-09
Gulfport, MS

1 edit

tc1uscg

Member

Re: Sprint? Get Real!

said by Mechano:

Sprint won't be around for another year or so. They are laying off people next month as well, and also in December (I wonder who's gonna be left there). Some one will have to buy it. ATT is up to their eyeballs in debt after so many exec retirement packages, mergers, freq. acquisition, etc. Verizon, too - spectrum, and global slow down (see Vodafaone chunk). T-mobile and the German govt. (Deutsche Post) have deep pockets. Now, what they do with the IS95B? Roll it over to UMTS, simple !
for a minute.. I thought you were serious..
T- Mobile would be awesome
That would be really great since Sprint sucks anyway, maybe T- Mobile could teach them about customer service. I'm glad I don't have to talk to Claire anymore, she was annoying and worse than an ex girlfriend.
T-Mobile has customers? And here I thought their numbers were just employee's with handsets.
Maggs
Premium Member
join:2002-11-29
Jackson Heights, NY

Maggs

Premium Member

T- Mobile would be awesome

That would be really great since Sprint sucks anyway, maybe T- Mobile could teach them about customer service. I'm glad I don't have to talk to Claire anymore, she was annoying and worse than an ex girlfriend.

Toropop
join:2001-11-11
Vancouver, WA

Toropop

Member

Re: T- Mobile would be awesome

Ha! Claire. I totally forgot about that heifer.

n2jtx
join:2001-01-13
Glen Head, NY

n2jtx to Maggs

Member

to Maggs
said by Maggs:

That would be really great since Sprint sucks anyway, maybe T- Mobile could teach them about customer service. I'm glad I don't have to talk to Claire anymore, she was annoying and worse than an ex girlfriend.
Unfortunately I think a T-Mobile acquisition of Sprint would bring T-Mobile down to Sprint's level not the reverse.

Plus they would wind up running three technologies; GSM, iDen and CDMA. While LTE is the chosen 4G path for GSM, Sprint is the only U.S. carrier that decided to go with WiMax instead causing even more compatibility issues.

Hopefully this is just a rumor.
patcat88
join:2002-04-05
Jamaica, NY

patcat88

Member

Re: T- Mobile would be awesome

Will never happen. Deutch Telecom/T-mobile doesn't operate non-GSM networks anywhere else, why would the USA be the first exception?

jay608
Going Nucking Futs
join:2007-01-22
Homewood, IL

jay608

Member

If a merger happens

It will sink faster than the Sprint / Nextel merger. It would be easier for Sprint it fix their own issues.

NY Tel
Premium Member
join:2004-04-09
Smithtown, NY

NY Tel

Premium Member

Might not be so bad after all

T-Mobile has the best "perceived" customer care from what I have heard.
While domestically, their network is not the best, combining the Sprint Network with their management and customer service might be be a good move, one which could put them in a really competitive position.

pnh102
Reptiles Are Cuddly And Pretty
Premium Member
join:2002-05-02
Mount Airy, MD

pnh102

Premium Member

Re: Might not be so bad after all

said by NY Tel:

While domestically, their network is not the best, combining the Sprint Network with their management and customer service might be be a good move, one which could put them in a really competitive position.
Not likely. You cannot use a T-Mobile phone (GSM) on Sprint's network (CDMA/IDEN) and vice versa.

TransitMan
MVM
join:2000-09-05
Dayton, OH

TransitMan

MVM

Re: Might not be so bad after all

said by pnh102:

Not likely. You cannot use a T-Mobile phone (GSM) on Sprint's network (CDMA/IDEN) and vice versa.
How about leaving both networks active and give the buyers/customers a choice?
Yeah, it would be a major undertaking, but think of the possibilities.

pnh102
Reptiles Are Cuddly And Pretty
Premium Member
join:2002-05-02
Mount Airy, MD

pnh102

Premium Member

Re: Might not be so bad after all

said by TransitMan:

How about leaving both networks active and give the buyers/customers a choice?
Yeah, it would be a major undertaking, but think of the possibilities.
Yeah... they'd go bankrupt twice as fast

rsa0
join:2003-01-25
Birmingham, AL

rsa0

Member

Re: Might not be so bad after all

They're not buying them for the technology (GSM vs CDMA/iDEN), they are buying the spectrum - besides, do you think the big dogs are US money...ha ! read a bit more. A lot of the money in ATT, Verizon, can be even Saudi money...is a global market dude ! Besides, Verizon is partially owed by an English company...I can bet that Sprint is not going to be around as we know it for more than a year.

supergirl
join:2007-03-20
Pensacola, FL

supergirl

Member

Re: Might not be so bad after all

said by rsa0:

They're not buying them for the technology (GSM vs CDMA/iDEN), they are buying the spectrum - besides, do you think the big dogs are US money...ha ! read a bit more. A lot of the money in ATT, Verizon, can be even Saudi money...is a global market dude ! Besides, Verizon is partially owed by an English company...I can bet that Sprint is not going to be around as we know it for more than a year.
VZ Wireless is a partnership with Vodafone (UK) with a 45% stake worth $50 billion. With FIOS costs, VZ couldn't afford to buy out Vodafone's stake.
patcat88
join:2002-04-05
Jamaica, NY

patcat88 to rsa0

Member

to rsa0
said by rsa0:

They're not buying them for the technology (GSM vs CDMA/iDEN), they are buying the spectrum
.................................................
I can bet that Sprint is not going to be around as we know it for more than a year.
So that means shutting down CDMA service, not happening. It took 5-7 years of not selling TDMA handsets to shut down TDMA in the USA. It would take that long to shut down CDMA. You will suffer irreparable image damage if you send a letter saying next month their and every other sprint friend they have's handset is dead.

old_dawg
"I Know Noting..."
join:2001-09-22
Westminster, MD

old_dawg to rsa0

Member

to rsa0
said by rsa0:

I can bet that Sprint is not going to be around as we know it for more than a year.
Did your crystal ball or the magic 8 ball provide that information ?

tc1uscg
join:2005-03-09
Gulfport, MS

tc1uscg to rsa0

Member

to rsa0
said by rsa0:

They're not buying them for the technology (GSM vs CDMA/iDEN), they are buying the spectrum - besides, do you think the big dogs are US money...ha ! read a bit more. A lot of the money in ATT, Verizon, can be even Saudi money...is a global market dude ! Besides, Verizon is partially owed by an English company...I can bet that Sprint is not going to be around as we know it for more than a year.
And the wireline backbone. How many switches does T-Mo have? How much will they save in access charges. I see them taking Sprint. Selling off the WiMAX stuff, selling off the crappy CDMA money pit but keeping all the wireline stuff (IP switches, etc..) and living happily ever after..

NOCMan
MadMacHatter
Premium Member
join:2004-09-30
Colorado Springs, CO

NOCMan to pnh102

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to pnh102
Not such a big problem. Adding GSM radios into the Sprint network would be much cheaper than building all those new towers to enhance coverage.

Plus DT could go to the government say they'll pay for the public safety licenses and buy sprint. They get customers off the IDEN portion and hand that over to the government for management (DT covers mantenance) they get tax breaks galore.

And because our dollars is so screwed it's going to be cheap.

Now the question is weather Verizon Wireless would step in to jack the price up or purchase them to keep Tmobile out of the picture. Between VZ and VOD they can come up with the money.

Of course if they did not, then VOD may be encouraged to buy VZW outright at a discount.

VZ would fight that because VZW is their bread and butter until FIOS revenues fix the colossal mistake buying MCI was.

NY Tel
Premium Member
join:2004-04-09
Smithtown, NY

1 recommendation

NY Tel to pnh102

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to pnh102
said by pnh102:

said by NY Tel:

While domestically, their network is not the best, combining the Sprint Network with their management and customer service might be be a good move, one which could put them in a really competitive position.
Not likely. You cannot use a T-Mobile phone (GSM) on Sprint's network (CDMA/IDEN) and vice versa.
I never implied or inferred that their networks were interchangeable. Management and Methods and Procedures or a better company can be put in place at the bad company to make improvements.

httpimrancom
@pilosoft.com

httpimrancom

Anon

Good customer service co. wants to buy scum-de-la-scum co.?

T-Mobil is not perfect but I have been with them since 2003 - as soon as number portability enabled me to leave evil, vile, repulsive, scummy, fraudulent, false advertising Sprint. Sprint is the Scum de la Scum of telecom, or any business industry.

The only reason I will be leaving TM now is to get on AT&T for the Gen2 iPhone around June 10, 2008.

Here is how the Math works. #4 TM wants to buy #3 Sprint to become #1.

In reality, with integration, incompatible systems and cultures, #4+#3 can easily make them become #7 !!

If T-Mobile wants to go from 4th to 7th place in the marketplace, they should buy Sprint right away.

Imran
IMRAN.TV

danthegsmfan
@comcast.net

danthegsmfan

Anon

CDMA-LTE

It should be pointed out that both CDMA operators are considering LTE or 4G for their next network upgrade.

LTE or 4G is basically an upgrade to the UMTS standard which T-Mobile has just started to deploy.

It is not a huge stretch to imagine that a SPRINT/T-Mobile (DT) merger would patch lots of wholes in both networks (mostly T-Mobile's) and provide lots of spectrum to work with in the future.

Raff
@tsa.dhs.gov

Raff

Anon

Spectrum

Probably a takeover for the spectrum... 1900 that is all Sprint has like $$$10 billion worth of it...Verizon just paid $5bn for 22MHz of open-access spectrum (whose value is less than that of closed-access spectrum). Considering that Sprint holds more than double that, they have well in excess of $10bn in spectrum holdings alone.

HEDP
join:2008-04-27
Miami, FL

HEDP

Member

.

SK Telecom makes a lot more sense, the owners of Helio.

I am favoring someone buying Sprint because the current people in charge don't have a clue what they are doing and so far has only made the company go to the ground. They not only pissed off customers, but as well investors because they can't get their act together.

Adding GSM into the mix now will simply cause chaos with now over 4 networks: GSM, WiMAX, CDMA, iDEN. Sure they have massive assets in spectrum but that benefit will quickly go to the ground as the amount of money to just operate these networks will drain the capital the company has left.
tmc8080
join:2004-04-24
Brooklyn, NY

1 edit

tmc8080

Member

Definition of dysfunctional!

I don't see this happening. First of all.. for this to semi-work.. some segment of subscribers will get SCREWED on handsets... because incompatible technologies will be consolidated on combined towers. Next, consolidation of pricing, terms and plans would be more confusing. Most importantly, I don't even think DT has enough money and skill to make this work. DT is no vodafone piggy bank.. no matter how well the German government is doing.

This also would mean a further consolidation upon an industry which would leave only 3 major wireless carriers instead of 4 (down from nearly a dozen regional in the last decade). ** Anti-Trust, pricing and price hikes are in the running too for all these technology upgrades which are happening.. which look bad after fresh off the heels of consolidating.

I think it's bad timing.. let one of the two companies fail... either Sprint or T-Mobile, once they're in a position to file for bankruptcy.. could then be rescued for pennies on the dollar.

ILpt4U
Premium Member
join:2006-11-12
Saint Louis, MO
ARRIS TM822
Asus RT-N66

ILpt4U

Premium Member

Re: Definition of dysfunctional!

I guess you do not consider Alltel and US Cellular major wireless carriers...

I do, so that would be 5 major carriers the way I see it: AT&T, Verizon, Sprint/Nextel/T-Mobile (possibly), Alltel, and US Cellular.

And whatever happened to the off again on again rumors of Comcast being interested in Sprint? Is that all in the past?

Bootes
Premium Member
join:2005-01-28
New York, NY

2 edits

Bootes

Premium Member

Re: Definition of dysfunctional!

I wouldn't consider them major wireless providers, they're nowhere near the size of Verizon and the others.
patcat88
join:2002-04-05
Jamaica, NY

patcat88

Member

Re: Definition of dysfunctional!

Alltel is the largest provider in the USA.

Bootes
Premium Member
join:2005-01-28
New York, NY

Bootes

Premium Member

Re: Definition of dysfunctional!

AT&T Mobility is the largest mobile phone company in the United States and it also operates in Puerto Rico and the United States Virgin Islands. AT&T Mobility has approximately 71.4 million subscribers as of the first quarter 2008, and operates the largest digital voice and data network in the United States.

Verizon Wireless, owns and operates the second largest wireless telecommunications network in the United States, based on a total of 67.2 million U.S. subscribers. Based on revenue, Verizon Wireless is the largest American wireless company and largest wireless data provider, with an annual revenue of $43.9 billion.

Sprint Nextel Corporation (NYSE: S) is one of the largest telecommunications companies in the US. With 53.8 million subscribers,[3][4] Sprint Nextel operates the third largest wireless telecommunications network in the United States (based on total wireless customers), behind AT&T and Verizon Wireless.

T-Mobile USA is currently the fourth-largest wireless carrier in the U.S. market with 29.8 million customers as of February 2008 (with SunCom deal) and annual revenue of US$17.1 billion for their 2006 fiscal year.

Alltell has 13 million subscribers and their network consists mostly of roaming agreements with the above companies. I've never even met someone that has Alltel service.
hottboiinnc4
ME
join:2003-10-15
Cleveland, OH

hottboiinnc4

Member

Re: Definition of dysfunctional!

Alltel is the shit! And they are the largest by coverage. They have service in areas that VZW and Sprint do not cover. If it wasnt for them VZW would have coverage problems in Southeast MI and a lot of the smaller areas around the country.
iansltx
join:2007-02-19
Austin, TX

iansltx

Member

What if...

Alltel does NOT have an extremely small coverage area, neither does USCC. However they don't offer service in major markets, and their subscriber count makes even T-Mobile look big. So yeah, it'd be "big three' instead of "big four" with VZW being the only one not to run GSM and AT&T being the only one not to run CDMA.

In the other hand, USCC and Alltel aren't going anywhere any time soon. Unless Verizon buys US Cellular and Sprint (eventually) picks up Alltel.

Speaking of which, Alltel has god customer service, right? Why not merge the two companies to create a voice and data footprint that Verizon and AT&T would both envy, plus take them up to par with Verizon in terms of subscribers? For all Sprint's customer service debacles\managment issues\WiMax deployment problems, they know how to run a network and they have decent offerings plan-wise. Alltel has the network and the CS, and if Sprint and Alltel merged Verizon would be roaming on the new entity more than the reverse, making for a favorable fee situation...or forcing Verizon to allow reciprocal roaming on their EvDO network, for a footprint larger than any other single 3G provider in the world, I'd think.

Of course, at that point Verizon would probably buy up US Cellular in order to get to #1 in terms of subscribers again and to get themselves in a better roaming situation. At this point, to compete with the economies of scale afforded by the big guys, CricKet and MetroPCS would probably merge, taking the 270k+ subscriber Pocket Communications with them. SunCom is already T-Mobile's and Unicel is already Verizon's...CinBell would probably get bought by T-Mobile...

So the top 11 wireless carriers (including Dobson and SunCom), if buyouts and mergers were to take place, would end up being five:

AT&T
VZW + Unicel + US Cellular
Sprint + Alltel
T-Mobile + SunCom + CinBell
CricKet + MetroPCS + Pocket

Of course this would never happen, so VZW will still have more native coverage than Sprint, T-Mobile won't get CinBell, CricKet and MetroPCS won't be able to agree about anything, and US Cellular's network will stay its own. But if it did happen, can anyone say better coverage, and more economies of scale meaning that prices wouldn't soar?

Or am I just wishing Sprint would keep going because my plan and phone are great?

••••

RaulF
@constellation.com

RaulF

Anon

Wow

Alot of Sprint haters i see.

I guess I'm the only happy Sprint customer. No wonder the company is doing so bad, 99% of the world is bad mouthing them.

SprintUser
@bellsouth.net

SprintUser

Anon

Re: Wow

I'm with you. I'll admit I've had some billing issues (after upgrading phones), but they've always corrected them. I've been with them for about 6 years or so and love their service. I also have a VW phone from work and have to say that between the two services (multiple handsets on each) Sprint has better coverage around my area. It's so nice to be out someplace and be the only one in my department that has service!

I will also say that Sprint should have never bought Nextel. Never did really understand that move. I'm sure there was a good reason....just don't know what it was.
gaforces (banned)
United We Stand, Divided We Fall
join:2002-04-07
Santa Cruz, CA

gaforces (banned) to RaulF

Member

to RaulF
This is my second month with Sprint. I really like the network so far but I'm already having problems with the billing.
I talked to customer service and the lady was very nice but she couldn't access my bill and it took 5 weeks for my bill to show up online from initial order.
Hopefully the customer service rep can access it now and fix the mistakes ...

Cuchulainn
The Roar of the Masses Could be Farts
join:2000-11-09
Chevy Chase, MD

Cuchulainn

Member

Let's Look At This Another Way

Sprint's market cap is someting like $22.5b at the moment. With the Euro at $1.54, this makes it at least worth considering. So what if it's a different technology? So what if the company is heading downhill like a greased pig on rollerskates? It's CHEAP!!!

There have been a lot of stupid acquisitions over the last year based solely on the weakness of the dollar. Look for lots of Congressional chest-thumping in the coming weeks. It's beginning to look a lot like the 80s...

SprintUser
@bellsouth.net

SprintUser

Anon

Re: Let's Look At This Another Way

said by Cuchulainn:

greased pig on rollerskates?
LOL!
EPS4
join:2008-02-13
Hingham, MA

EPS4

Member

Deustche Telekom

Might Deutsche Telekom decide to retain Sprint and CDMA/EV-DO (or go the silly route and call it "T-Sprint" since they like the big magenta letter so much), and set a long term plan to switch over in LTE (Xohm dies, so sorry) under the single T-Mobile brand and network? Or maybe even try to sell T-Mobile 3G as the natural upgrade to CDMA/EV-DO. I agree with the earlier comment that Sprint's biggest assets are definitely the spectrum.

Nextel likely gets shut down or sold off, if they can find someone dumb enough, or perhaps gets to languish in that fun state half-dead tech companies that get bought out fall into, like AOL.

HarleyYac
Lee
Premium Member
join:2001-10-13
Allendale, NJ

HarleyYac

Premium Member

I hope not

Hi,
Sprint has much improved in my area, plus I signed up with the data service and they gave me another discount.
4 phones NO Dropped calls, crystal clear, 1400 shared min Free nights weekends, Unlimited Text ( All phones) data service (My Treo 700) $125 a month with tax. Beat that.
I hope they stick around.I never go over my allotment.

Lee
Mr Matt
join:2008-01-29
Eustis, FL

Mr Matt

Member

Sprint and T-Mobile providing nothing together.

Sprint and T-Mobile do not provide a usable signal in my home. Nextel provides a marginal signal. Combine that with the fact that each carrier uses a different technology means that the combined systems will be a Blivet. A Blivet is Ten Pounds of hot wet mixed fertilizer in a Five Pound sack.
KevinYeaux
join:2007-04-07
Hammond, LA

KevinYeaux

Member

Great

I presume if they were to acquire Sprint not only would they trademark magenta they'd trademark yellow while they're at it huh...
jfmezei
Premium Member
join:2007-01-03
Pointe-Claire, QC

jfmezei

Premium Member

This could hurt Verizon a lot

**IF** T-Mobile gets Sprint and converts customers to GSM, it would put Verizon is a very tough spot. The Qualcomm CDMA market would become much smaller and the selection of available handsets would be even worse than it is now, with T-Mobile able to offer a far greater variety of handsets.

Note that T-Mobile in the USA is a combination of many networks (Omniphone, Voicestream and a few others).

tristate
@centurytel.net

tristate

Anon

the reason for T-Mobile to buy Sprint would be....

They would do the following:

Keep:
the towers
fiber backbone
t-1 services
backhauls
1900mhz spectrum
phone numbers

they would kill/sell:
CDMA/IDEN equipment and replace with GSM
convert all CDMA users/cellsites to GSM
Sell the Sprint/Nextel name
Get rid of the color yellow
Retrain all employees, and get rid of the Kansas corporate office.

It would take some time, but everything takes time... I am an Authorized Dealer of T-Mobile and the market I am in has been in favor of this since the first rumor... gives a whole new meaning to T-1 and I would be one of the first to get rid of my DSL and switch to a T-1 because the prices would drop and be cheap just like their cellular service....

This would be the solution to T-Mobile's wireless backhaul problems with our 3g going live... rumor has it that in tests we have been seeing 10mbps on the downlink...

My market goes 3g next year, and the one next to me goes 3g later this year...