Comments on: To sue or not to sue, that is T-Mobile’s question

By: TazMan

TazMan — Wed, 22 Oct 2008 12:56:51 +0000

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.

By: Likeabite

Likeabite — Mon, 20 Oct 2008 13:44:30 +0000

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.

By: Ben

Ben — Sun, 19 Oct 2008 05:51:23 +0000

@ Mbear

that was the most logical and well sid post i have ever seen on bgr

By: MikeH

MikeH — Sun, 19 Oct 2008 03:27:05 +0000

I would not be so sure the Verizon merger wont go through. I still think if will

By: Mbear

Mbear — Sun, 19 Oct 2008 01:17:41 +0000

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.)

By: BowseÃÂ®

BowseÃÂ® — Sat, 18 Oct 2008 23:31:45 +0000

@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.

By: Jimmy

Jimmy — Sat, 18 Oct 2008 22:51:00 +0000

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

By: Melissa

Melissa — Sat, 18 Oct 2008 22:29:02 +0000

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.

By: EPS

EPS — Sat, 18 Oct 2008 22:02:32 +0000

Sprint is bigger than T-Mobile USA, but does not approach the size of Deutsche Telekom AG, T-Mobile’s parent company.

By: amrcnhstryx

amrcnhstryx — Sat, 18 Oct 2008 21:46:27 +0000

sprint is bigger then t-mobile, if anything someone else will buy t-mobile no the other way around.

By: Roger A

Roger A — Sat, 18 Oct 2008 20:18:53 +0000

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.