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Sprint Willing to Let T-Mobile Retain Control Post Merger

Softbank is prepared to let T-Mobile and Deutsche Telekom retain control of a merged Sprint T-Mobile if a deal gets done, Reuters reports. Sprint's Japanese owner Softbank attempted a Sprint T-Mobile merger in 2014, but the deal was blocked by regulators who feared it would only reduce overall competition in the space. But Softbank Chair Masayoshi Son has been determined to get the deal done ever since, and has been working overtime to sell the Trump administration and Deutsche Telekom on a new deal.

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But it's not clear Deutsche Telekom is still willing to sell. And if they are, it will be at a steep premium from the last effort, given T-Mobile's ongoing success.

SoftBank has been prevented from approaching Deutsche Telekom so far because FCC collusion rules prohibit their communications during a spectrum auction. But with the FCC expected to finalize auction winners shortly, Softbank is polishing up its sales pitch. Comcast and Charter are also consistently mentioned as possible suitors, which could drive up the cost of T-Mobile even further.

T-Mobile CEO John Legere acknowledged the likelihood of such a deal during an earnings conference call with the media and analysts this week.

"Sprint is clearly playing the game for the next quarter, in that they've got good spectrum, but they don't have a franchise. They're a candidate for being a part of a greater organization, either through scale, or something else," Legere said. "There certainly is an expectation and an air of less regulation... corporate tax reductions, less impediment to... innovation," said the CEO.

Given Sprint's consistent failure at crafting a brand identity that truly resonates with consumers, T-Mobile leadership of the merged company would certainly be the more sensible route if a deal gets done. Theoretically, the combined company would be better positioned than ever to do battle with AT&T and Verizon. But historically, consolidation in telecom creates less overall competition and therefore less innovation, not more (cable's abysmal customer service being exhibit A). That's on top of the job losses that result as redundant positions are eliminated.

As this week's battle over unlimited data has shown, T-Mobile's competitive impact has been indisputable. But history has proven repeatedly there's simply no guarantee the "uncarrier's" consumer-friendly behavior persists in the wake of consolidation and less competition.


Most recommended from 77 comments



karpodiem
Hail to The Victors
Premium Member
join:2008-05-20
Troy, MI

32 recommendations

karpodiem

Premium Member

Boom!

The game is on!

I would love to see Legere running the largest wireless company in the US - he would be a worthy foe to at&t and verizon.

Takuro
join:2016-10-17
Chapel Hill, NC

16 recommendations

Takuro

Member

I'm Happy

Normally, I would be upset to hear of another major merger in the telecom industry. But in this case, I definitely take an exception. I hope they continue under the T-Mobile brand and continue to erode at AT&T's business. This would put them at about 15 million subscribers away from being the largest U.S. carrier, a negligible gap that would be closed in no time. Talk about a massive upset -- going from last place to first over the span of just a couple years.

Ref:
»en.wikipedia.org/wiki/Li ··· roviders

AT&T: This is why you should not screw over your customers. Thanks.
xthepeoplesx
join:2013-10-21

8 recommendations

xthepeoplesx

Member

NO SH*T?

"Softbank is prepared to let T-Mobile and Deutsche Telekom retain control of a merged Sprint T-Mobile" haha no sh*t!
Corporate
join:2014-10-04

7 recommendations

Corporate

Member

SprinT-Mobile

With Sprint's Günther and spectrum portfolio, and T-Mobile's Legere/Ray, there is only one thing to say:

The Game Is On!

This gives #GettingBetterEveryday a whole new meaning.
techguru308
join:2016-05-19
Cincinnati, OH

1 edit

7 recommendations

techguru308

Member

I would be open to merger under T Mobile USA leadership

I would be open to this merger with T Mobile USA running the show. John Legere has demonstrated his ability to revive a dying cell phone provider. I believe his expertise will be valuable during the migration process of converting Sprint, Boost Mobile, Virgin Mobile USA and all the other Sprint MVNO's over to the T Mobile USA GSM Network. The next question is will Sprint and T Mobile join their owned MVNO's under one company or will they operate under their separate names but on The T Mobile USA network? I think their combined spectrum assets and network equipment will be a benefit and create a strong network that can compete with Verizon and AT&T Wireless. That way we will have 3 strong nationwide carriers instead of 2. T Mobile USA has improved but they need to densify their network in places they add coverage through low band spectrum. Sprint has towers in locations were T Mobile USA had no service before they got low band spectrum. Considering that Cable Companies will be entering the wireless market and they will most likely will be able to undercut the wireless companies with bundles that include TV, Internet, Home Phone, and Wireless Service.
tehkwhiz
join:2012-02-28
Columbus, OH
Humax BGW320-500
Ubiquiti Unifi Security Gateway
Ubiquiti U6-Lite

6 recommendations

tehkwhiz

Member

It looks like they heard my rant on DSLR the other day...

...and agree with the fact that TMUS leadership cannot be touched.

I really don't care for Sprint, but the benefits of a merger can't be ignored -- both in regards to the vast amounts of spectrum Sprint has, and the fact that T-Mobile suddenly gaining another 60M customers lickety-split would make Randall and Lowe absolutely shit their pants.

pcdebb
birdbrain
Premium Member
join:2000-12-03
Brandon, FL

5 recommendations

pcdebb

Premium Member

For the love of all humanity.....

PLEASE dont do this. T-mobile is awesome, has been awesome for years. I left Sprint because they sucked, and I hear they still do
etaadmin
join:2002-01-17
united state

5 recommendations

etaadmin

Member

Do you really think

that at$t or Vz will let this happen? Given the current nationalistic environment (buy American, bring back American jobs, etc) it is going to be hard to let a 'foreign' (DT) company threaten the NSA/FBI/HLS sweethearts dominant position.

Don't take me wrong, if the article's conditions are met I'm all for the merger specially if Legere stays at the front.

This is going to be very interesting.
killer68
join:2017-02-18

3 recommendations

killer68

Member

4 competitors better than 3 unless...

Can anyone comment on the frequency issues? Is there is a real technical limit that would make 3 national providers necessary?
If not, it's much better for consumers to have 4 national competitors. I don't care if evil Comcast were to buy Sprint; as long as there is a robust 4th competitor, that will push forward a better product at a lower price. Never trust companies that talk about efficiencies and how they'll have more money to expand their services by eliminating a competitor.
I wonder if Google could buy Sprint and roll it into their potential move to gigabit speed fixed wireless internet?