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That Sprint/T-Mobile Merger? Not Happening.
'Sources' and analysts think acquisition unlikely...
by Karl Bode Wednesday 16-Sep-2009 tags: competition · business · wireless
Earlier this week UK paper the Telegraph floated a rumor that Deutsche Telekom was hiring advisers to make a play at Sprint. Apparently, the plan was to acquire the company, then somehow painfully integrate T-Mobile and Sprint's vastly different network architectures to create a bigger, stronger, super carrier. If anyone was excited about that (and Sprint users probably weren't, since the carrier finally seems to be improving) -- you can apparently forget about it. According to Reuters, multiple sources seem to believe the deal isn't happening. Sprint certainly briefly benefited from the re-hashing of the eighteen-month old rumor, which drove the company's stock up ten percent on Monday.

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kapil
The Kapil

join:2000-04-26
Chicago, IL

1 edit

You don't say

The only one who ever thought the merger made sense are "analysts" who get a hard-on at the mention of mergers, synergies, acquisitions, LBOs etc.

No one in their right mind thought this was going to happen. It didn't make any sense.

Sprint uses CDMA, and is still trying to digest Nextel's iDEN network. T-Mobile uses GSM....on a different frequency than its parent company's networks elsewhere around the globe.

Sprint has some sensitive government and large corporation contract that have national security and industrial espionage implications.

There's no regulatory will for another competition-reducing mega-merger.

So, no matter how much Craig Moffett et al try to will this non-sensical merger wet dream into existence, it ain't happenin'.
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Romney2012
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Re: You don't say?

But Sprint's stock is only down 1.5% after a 10% up the day before. Maybe Sprint leaked a rumor to goose the stock price.

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Re: You don't say?

said by Romney2012:

But Sprint's stock is only down 1.5% after a 10% up the day before. Maybe Sprint leaked a rumor to goose the stock price.
What I was thinking too..

Poor stock? Lets start a merger rumor to drive it up!
rayeger

join:2003-07-05
North Royalton, OH

Re: You don't say?

Go back and see who made the most from buying before and selling the stock after, and there will be the person who "leaked" that rumor. With any luck that person will be put in jail for a long time.....
LineNoise

join:2006-06-25
Downers Grove, IL

Re: You don't say

Never say Never.

People were yelling the same shit about Sprint and Nextel merging and swearing it would never happen. Look how that turned out...

burgerwars

join:2004-09-11
Northridge, CA
If this rumor ever came true, I can't see T-Mobile switching to Sprint's CDMA technology. It would have to be the other way around, since that's the prominent technology elsewhere around the world, including T-Mobile's overseas operations.

That would leave Verizon as the only major CDMA player left in the U.S. At that point, maybe Verizon would be thinking "if you can't beat them, join them."

As far as Sprint's other corporate/government business, companies always go out of business or merge, and technologies change. Nothing is static. This would all evolve.

Anyway, since this ain't happening, no need to worry about it now.

CurGeorge8

join:2005-05-02
South Park, PA

Re: You don't say

Verizon has already announced they are transitioning their entire network to LTE ...

»Verizon Speeding Up LTE Deployment

CDMA, for all intensive purposes, is dead.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: You don't say

said by CurGeorge8:

Verizon has already announced they are transitioning their entire network to LTE ...

»Verizon Speeding Up LTE Deployment

CDMA, for all intensive purposes, is dead.
LTE is CDMA.
patcat88

join:2002-04-05
Jamaica, NY
kudos:1

Re: You don't say

said by fifty nine:

LTE is CDMA.
A. LTE isn't CDMA2000 the protocol
B. LTE isn't CDMA the modulation method »en.wikipedia.org/wiki/E-UTRA

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
Not really... its more like OFDM.
DarnellP

join:2004-10-12
Las Vegas, NV
said by CurGeorge8:

Verizon has already announced they are transitioning their entire network to LTE ...

»Verizon Speeding Up LTE Deployment

CDMA, for all intensive purposes, is dead.
Intents and purposes. Also VZW has stated that they will continue to use CDMA for voice until 2018-2020. Not so dead... They will be using LTE for data only.
EPS

join:2008-02-13
Hingham, MA

Re: You don't say

Early LTE devices will be data-focused devices like aircards... this is how EV-DO started out, too... these are usually the first type of devices that get to market due to relative simplicity.

The voice component of LTE is likely to take more time to test. Verizon will probably want the first batch of LTE-enabled phones to use CDMA for voice, too, especially considering LTE-CDMA handoffs. But how I understand it 2018-2020 is the shut-down date for the CDMA network, not when they plan to stop selling CDMA phones. (You might have meant this, the post was unclear so I wanted to clarify)

Interestingly, because EV-DO is "data only" (well, the official acronym was changed to "data optimized" for some reason), the older CDMA 1x network is still used for voice, and may end up outliving EV-DO...

Guest100

@embarqhsd.net
Plus Sprint still operates a lot of fiber, certain customer premises equipment and long distance calling for GSA. They still have a lot of backhaul services running in the background for various customers too.

Gbcue
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Haven't you guys figured it out yet?

It's not about technologies at the moment, it's all about spectrum!

Buying Spring for a piddly 10b will give T-Mobile much more spectrum it needs when it launches 4G!

GSM/CDMA/iDEN will all converge/be phased out in their 4G network, LTE!
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DarnellP

join:2004-10-12
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Re: You don't say

said by Gbcue:

Haven't you guys figured it out yet?

It's not about technologies at the moment, it's all about spectrum!

Buying Spring for a piddly 10b will give T-Mobile much more spectrum it needs when it launches 4G!

GSM/CDMA/iDEN will all converge/be phased out in their 4G network, LTE!
Haven't you figured it out yet? Buying Sprint would cost a great deal more than $10B. Their market cap is well over $11B. The shareholders would almost assuredly demand a premium for the stocks. Plus they would have to assume Sprint's debt which is @ $21B. So that $10B figure is a pipe dream as is this alleged T-Mo/Sprint union.

CTU

@74.205.127.x
said by kapil:

Sprint has some sensitive government and large corporation contract that have national security and industrial espionage implications.

You know I always noticed Jack Bauer using a Sprint phone.

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Re: You don't say

said by CTU :

said by kapil:

Sprint has some sensitive government and large corporation contract that have national security and industrial espionage implications.

You know I always noticed Jack Bauer using a Sprint phone.
Jack Bauer is also fictional, along with Sprint's coverage.
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jermoal

@verizon.net

sprint need help

people are not happy with sprint, it will be a big move for t-mobile, to be at the top with at&t and verizon,
xenophon

join:2007-09-17

Re: sprint need help

said by jermoal :

people are not happy with sprint, it will be a big move for t-mobile, to be at the top with at&t and verizon,
You might check the recent temperature... many more are liking Sprint more and more now. The Nextel side might still hemorrhage customers for a while longer but the Sprint side has really turned around lately. It's pretty clear on many fronts that they are improving.

old_dawg
"I Know Noting..."

join:2001-09-22
Westminster, MD

Re: sprint need help

said by xenophon:

said by jermoal :

people are not happy with sprint, it will be a big move for t-mobile, to be at the top with at&t and verizon,
You might check the recent temperature... many more are liking Sprint more and more now. The Nextel side might still hemorrhage customers for a while longer but the Sprint side has really turned around lately. It's pretty clear on many fronts that they are improving.
More money for Dan Hesse & senior management now that virtually all of network operations has been kicked to the curb and farmed out to Ericsson.
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fiberguy
My views are my own.
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I think, in a posting last week...

... I TOLD YA' SO!

This was never going to happen... not now, not in the future.

Fox McCloud
Crazy like a fox.

join:2006-07-23

1 edit

Hallelujah!

Thank goodness, that would have been a terrible idea anyway....

Sprint buying out US Cellular though? Great idea. It wont' happen though.
fiberguy
My views are my own.
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Re: Hallelujah!

Um, yea.. I agree with ya... let's see.. Nextel and Sprint merge a CDMA/Iden network together.. and then they'd want to mash all that into a GSM network as well?? did they NOT see what happened with Nextel/Sprint? lol
silbaco

join:2009-08-03
Fairfax, IA
Why do people always want US Cellular to be bought? They don't need to be bought out. They are doing fine on their own, and last time I checked were not interested in merging.

FBGuy
yippee ki yay
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join:2005-03-19

Re: Hallelujah!

yea us cellular is at the sweet spot. they are not huge, yet not small. If they had more open handsets I'd go back to em.
DarnellP

join:2004-10-12
Las Vegas, NV
said by silbaco:

Why do people always want US Cellular to be bought? They don't need to be bought out. They are doing fine on their own
Maybe, maybe not. Last quarter they lost almost 100K subscribers. A merger with Sprint could make sense for both parties.
DarnellP

join:2004-10-12
Las Vegas, NV
said by Fox McCloud:

Thank goodness, that would have been a terrible idea anyway....

Spring buying out US Cellular though? Great idea.
Agreed on both counts.

Fox McCloud
Crazy like a fox.

join:2006-07-23

Re: Hallelujah!

said by DarnellP:

said by Fox McCloud:

Thank goodness, that would have been a terrible idea anyway....

Spring buying out US Cellular though? Great idea.
Agreed on both counts.
MetroPCS would be another good candidate.

A long while back Sprint wanted to merge with Alltel (or buy them out). They made an offer, but Alltel thought it was too low.

Darn shame they didn't offer enough--that would have been a merger that would have likely put Sprint at the top and kept it there...no crummy switchover mess to deal with, which would have given them more time to focus on customer support.
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Re: Hallelujah!

Sprint just needs to drop the price plans to $50-60 flat rate fully unlimited and then set back. everyone that's switched from them will go back and many more will sign up as well.

You can't beat unlimited flat rate service with nationwide service for $50-$60. MetroPCS/Revol/Cricket wouldn't be able to compete.
Mr Matt

join:2008-01-29
Eustis, FL
kudos:1

Was the announcement for a pump and dump!

Was the rumor about Sprint just an opportunity for insiders to pump and dump?
Rob2647

join:2008-08-12
Rochester, MI

Good

Last thing I want to see if that redheaded step-child called T-Mobile merge with my cell carrier of choice. I left T-Mobile b/c of their crappy service. Dropped calls where a once a week event.

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