To sue or not to sue, that is T-Mobile’s question
The fourth largest carrier in the US (behind AT&T, Verizon and Sprint) is in the midst of putting up a big fight against the FCC. T-Mobile, along with the support of AT&T and CTIA, contends that the AWS-3 spectrum the FCC is auctioning off will interfere with the AWS-1 spectrum that T-Mobile uses. If startup M2Z networks wins the auction, it plans to use the space to make mobile WiMax nationally available - and free. The FCC asserts that the technology available will override any possible interference between the two spectra and thinks the auction should go on as planned. Kathleen Ham, T-Mobile’s VP of regulatory affairs responded to the decision to proceed with the auction by saying, “We’re disappointed with those results obviously. The commission takes all this time and effort and lo and behold, they come up with the exact same results they came up with in May.” Ham went on to say, “Obviously the chairman made up his mind but there are four other commissioners.” Burn! Ham certainly sounds a little upset, however M2Z claims that Ham, along with everyone else trying to prevent the AWS-3 auction, is just trying to block them from providing a free service. Of course Ham adds that T-Mobile is too busy competing with the big boys, making the effective blockage of M2Z of little or no importance. All they’re concerned about is the AWS interference. T-Mobile says that using a technique called “asymmetrical pairing” would avoid any AWS-3 interference but M2Z has yet to acknowledge or comment on that. We find that to be a little odd and may put M2Z’s intentions into question. It would seem as though T-Mobile is totally cool with whatever M2Z wants to do so long as they take measures against interfering with T-Mobile’s line of business. We’ll wait for the auction to see what comes of it.
Tags: 700MHz, advanced wireless systems, AT&T, aws, AWS-1, AWS-3, CTIA, FCC, M2Z Networks, spectrum auction, T-Mobile
Wouldnt it be nice if T-Mobile could just say.. “Hmm, lets BUY ALL THAT SPECTRUM too.” or if they could just buy the company putting out WiMAX, then buy Sprint too !
Makes sense… But something tells me the FCC would pitch a fit.
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sprint is bigger then t-mobile, if anything someone else will buy t-mobile no the other way around.
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Sprint is bigger than T-Mobile USA, but does not approach the size of Deutsche Telekom AG, T-Mobile’s parent company.
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Check out Sprint’s stock price. Sprint is in no shape to buy anyone anytime soon. They’re practically a steal for someone to buy right now if someone wanted a piece of that mess.
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T-mobile usa isn’t buy anybody. It was Deutsche Telekom that was rumored to buy Sprint. DT is like the european version of at&t
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@amrcnhstry your an idiot sprint is not bigger than T-Mobile. More people have T-Mobile and T-Mobile is owned by Deutche Telekom amuch much larger company that could easily buy Sprint.
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T-Mobile USA, along with all of the other T-Mobiles around the world, are owned by Germany’s Deutsche Telekom.
T-Mobile USA is the 4th largest of the US national carriers, after Sprint, but unlike Sprint hasn’t lost billions of dollars this year (& suffered from ongoing revolving-door management).
T-Mobile USA has also just completed successful integration with their Suncom purchase (expanded service in the Carolinas & Puerto Rico).
T-Mobile USA is also busy rolling out their new 3G network, with it due to get it’s first big workout in the coming weeks with their release of their “G1″ Android phone, developed in partnership with HTC & Google.
So unlike Sprint it appears T-Mobile is looking pretty good.
Sprint did have their WiMax plans - but as that has been spun off as Xohm, is woefully behind schedule and without a credible business plan, so it’s value is pretty theoretical.
There has been speculation of T-Mobile purchasing Sprint. This is unlikely as Sprint/Nextel,has very little in the way of overlapping technologies or licenses of interest to T-Mobile USA. Furthermore there is very little appeal in purchasing a company that failed due to it’s own (horribly botched) attempt at integrating two dissimilar companies. The only credible reason for T-Mobile USA purchasing Sprint would be to forestall a price war with Sprint if it were to go down in a series of fire-sales (something that appears unlikely.)
Aside from all of that US regulators might be concerned about Deutsche Telekom combing it’s T-Mobile USA with Sprint for a dominant position in the US wireless market. I can’t imagine the US being terribly enthused about such a strategic asset being owned by the former German phone company.
So unless Sprint implodes it looks like things will continue along the same.
(Particularly as it looks like the Verizon purchase of Alltel may not go through due to the tight credit market.)
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I would not be so sure the Verizon merger wont go through. I still think if will
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@ Mbear
that was the most logical and well sid post i have ever seen on bgr
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Mbear you make sense…Verizon’s the only one in any position to buy Sprint, especially since they utilize the same CDMA bandwiths. T-Mobile would have no chance but that’s besides the point, in respect to this post. T-Mobile just looks like they don’t want the free WiMax available to everyone. Their hotspot at home would be useless and them being the fourth player wouldn’t be helped by this at all. And the “assymetric pairing” seems like something that would cost M2Z money, which for a startup, they could not afford.
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The Justice Depertment will never let Verizon buy Sprint, particularly once the ALLTEL acquisition goes through (if it does) due to competitive considerations.
T-Mobile could do so, because they are #4, but I think the ante is going up given the increasing concentration of the top 3 carriers in terms of market share.
I think the GSM/CDMA issue could also be problematic, the migration costs would be enourmous and the churn caused by the migration would be huge. Sprint has already seen this issue with the Nextel to Sprint migration and I would think an already upset customer base would leave in droves.
My 2 cents.
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