With
T-Mobile UK and Orange now having to (potentially) learn to play nice, Deutsche Telekom is already looking ahead to its next big target:
Sprint Nextel. According to a
Telegraph report, the telecom giant, with an estimated value of $60.45 billion, has called in advisers from Deutsche Bank as it reportedly prepares to submit an offer to the $10.6 billion-valued Now Network within the next three weeks. The assimilation of Sprint and Deutsche Telekom subsidiary T-Mobile US under the same umbrella could give second-place AT&T a fight with a 78.2 million-strong customer base... but that said, we wouldn't anticipate any quick or smooth merger given the US carriers rely on substantially different bands (CDMA vs. GSM) for service. Hey, there's always WiMAX might come into play. Obviously there's a lot of unanswered questions here, but at this point it's all speculation given no actual offer has been thrown on the table -- and we bet
Hesse will have some choice words on the matter. Keep an eye out on this one, things could very quickly get very, very interesting here.
[Thanks to everyone who sent this in!]
posted Sep 13th 2009 5:19PM
That would be nice... all android devices on the same cairyer?
Eye Eye, Cairyer.
I believe it's spelled douche.
How cute. The two last place providers (Sprint and T-Mobile) have to merge because the big CDMA and big GSM carriers (Verizon and AT&T) are killing them.
Would be nice to have Android and Pre on a real network, like Verizon or AT&T.
With the FCC currently investigating all major US carriers for anticompetitive practices, will further consolidation really be allowed?
Still, something needs to happen to Sprint. It'll be fun to watch...
If I'm not mistaken the last time talk of Deutsche Telekom (or any foreign company for that matter) controlling such a large piece of our telecommunications infrastructure there was also talk of some laws on the books that our government would cite to block such an acquisition. Then again the head of our government (through his actions, words, and ideas) appears to himself be the head of some foreign outfit.
Yep @Dave. Don't you wish Obama was as "American" as W? Dave=FAIL
Ugh, I hope now. It seems like Sprint is FINALLY getting their crap together. Pre, Android, unlimited to all mobiles. I'm afraid they'll get bought out and all that will disappear. That or they'll stop progressing at the speed they are. It took them a LONG time to come as far as they've come.
This give them the final piece of the the puzzle: industry-leading customer service.
I know a lot of people will could come on here with CS horror stories from the t-mob, but there's a reason they've been stacking JD Power awards for customer service.
If they do this, and move manufacturers to make wi-max/evdo/gsm phones they could have something going.
Don't worry; this "report" comes from the Telegraph. It's as reputable as a blog.
If you actually read to article, you will see words like:
"T-Mobile and Orange are expected to..."
"DT will probably..."
"It is understood that DT has been..."
"It is thought DT will also..."
"DT, Sprint and Deutsche Bank all refused to comment."
These are just rumors and speculation. There is no news here.
@ drumwiz86
youre right, there ARE horror stories about TMobile, and im sure they only won JDP&A surveys is due ot other CS being even more awful. When I requested to speak to a supervisor due to rude CS.. the CSR actually did laugh and tell me Tmobile won some worthless JDPA award. never going back.
I worked at an outsourced customer service center for Sprint ... then we were turned into a T-Mobile center. I left shortly after that, but everyone there was an idiot, and I'm not surprised that people had such horrible complaints about Sprint considering the low threshold for hiring.
It's always (tele)kom before the storm. Let Deutsche Telekom buy-up Sprint Nextel and turn that loser over. Sprint had a history of poor management decisions. The Germans will fix-it for us now.
Customer service my butt...I left T-mobile because a CSR basically started yelling on the phone at me and threatening to hang up. The utterly worst service I've ever gotten-their goof up and they have the gall to be yelling at me and threatening to hang up on customers? Seriously T-mobile and their lawsuit happy pink bullcrap can go shove it. And if T-mobile buys Sprint I guess I'd be forced to switch carriers because I absolutely refuse to be a T-mobile customer ever, ever, ever, again.
Tony:
"Don't worry; this "report" comes from the Telegraph. It's as reputable as a blog."
Some funny thinking there "tony"...
@ Dana: Apparently you have the same level of confidence in German management as Vince "The Germans Always Make Good Stuff" Offer.:)
HA. As if the merger of Sprint with Nextel wasn't complicated enough. A GSM/iDen/CDMA network would be one massive clusterfuck.
“IF” this happens, it will be like peeling back the worthless old CDMA network layers like an artichoke to get to the “magic middle” the subscriber base. Problem is like an artichoke there is no magic in the middle since Sprint subs generate some of the lowest ARPU. That plus what “Scooby” say above.
PS If DB is willing to give a low-ball offer (since they will have to gut and transition the network to GSM/LTE) then I can see it. Besides, aren’t DB’s pockets Deeeeep?
Agreed. I think it's very telling that the arrow in the picture is pointing straight at a discarded cigarette butt, stuck in the cracks of the sidewalk. This whole attempt at further cell market consolidation is just disgusting.
T-Sproble!
But yeah, GSM + CDMA + iDEN + WiMAX? And maybe LTE too? Good luck, Deutsche Telekom... you're going to need it.
I think the idea is to gain access to additional resources in order to accelerate the rollout of WiMax.
TMO still hasn't gotten 3G rolled out properly, so if they partner with Sprint then they can just skip 3G and go straight to using and expanding Sprints WiMax network.
The consolidation is an issue, but then again if Sprint and TMO partner up they can provide real competition to VZW and ATT.
In that case, wouldn't T-Mobile be more likely to just buy a stake in Clearwire, which is deploying the WiMax network? Though, since this is all rumors, maybe that's what will actually happen.
Sprint owns 51% of Clearwire so they do retain the ability to veto any deal that is not in Sprint's best interest.
What Deutschebags........
Finally, now T-Mobile will get the 3 cities Sprint has 3G in! :D
All kidding aside... Sprint and T-Mobile? T-Mobile Nextel? S-Mobile Nextel? I don't know.. and I don't like it.
Nice job Hesse, you've driven away enough customers with messed up phone firmware, sprint-only phones, horrendous customer service that the stock is so devalued Sprint is ripe for a hostile takeover. My guess is that was your plan from the beginning as few could rape a company the way you butt pirated Sprint and still draw a salary.
On the plus side Sprint has a reasonably good wireless infrastructure thanks to the previous Sprint CEOs. Hopefully if DT takes over Sprint we won't be locked into Sprint phones only. Verizon phones would be nice but CDMA phones from other countries that are years ahead of the crap we keep getting on Sprint after they sit in someones drawer for "testing" would be fantastic. Clean firmware without Sprint crapware that mucks them up would be wonderful.
That has got to be the dumbest most uninformed comment I've ever read in regards to Sprint. Hesse didn't start the cluster**** but he has been kicking ass getting it fixed. Gary Forsee's tenure as CEO was a disaster, the Nextel merger was a mistake. Sprint has some of the most open firmware in the US and exposes many features to third party applications that *cough* *cough* Verizon does not.
Oh no... just no... HELL NO!!!
Yeah, I'd rather KDDI or SK Telecom buy them out.
Doesn't Sprint rent their air from Ericsson now? What if they just... quit? At this point, Sprint is just a brand since they don't actually own any of their towers anymore. Boost is getting so big, also. What if they spun Boost/iDEN off as it's own thing and consolidated Sprint's subscribers into T-Mobile? It reminds me of when Cingular slowly phased out TDMA, giving the subscribers crazy incentives to upgrade to a GSM phone...
The Sprint-Ericsson deal means that Sprint maintains ownership, but Ericsson takes care of network maintenance and day-to-day operations... Ericsson doesn't actually own the Sprint network.
Sprint still owns their entire network and the Ericsson is managing the network at either breakeven or at a loss in order to get a foothold on network management in the United States. Basically Sprint let them manage it because it was a great deal for Sprint and saves them a ton of money, they didn't give up any ownership rights or anything-it's just that Ericsson has to deal with keeping things running and fixing broken stuff.
I don't think this rumor makes any sense though...another CDMA carrier making a bid for Sprint would make a lot more sense than T-mobile attempting to create a GSM/CDMA/iDEN nightmare.
That said I wish I had bought my shares of Sprint earlier since even stupid rumors are sure to drive up the stock price.
Actually, this idea of phasing out CDMA/EVDO wouldn't necessarily be a bad idea - it would leave market leader Verizon all alone in the US with that kind of network, with no backup or second customer for those phones. I think that would lessen Verizon's power among device mfrs, and also scare off some customers. However, even if the combined entity supported both networks, it wouldn't be a bad thing, as long as they dumped the nextel network.
T-mo has the best (and most polite) customer service (I know, it's not saying much given the other 3 carriers, who set the bar real low), it would be great if they extended it to the Sprint business. I have phones with both Sprint and T-Mo, I wouldn't mind getting just one bill (although would take years for them to get that act together).
I won shares in DT, which owns T-mobile, and I wouldn't mind this merger (but they have to dump nextel). But it probably won't happen, unless maybe the $ continues to lose value against the euro, in which shares of DT are valued. Then Sprint becomes even cheaper.
Ken,
To clarify (UNFORTUNATELY) Verizon would not be the only one left. We have new players on the market.. Cricket, even though it's small, it also operates as CDMA carrier (yet on AWS band..1700 Mhz...but their phones still can roam on VZV, Sprint).
@Maciek, They have towers in a few cities, but for most of the country, they re-sell service, from VZ I believe. Go on their website and try buying a phone in zip codes for major cities, and they will say they don't offer wireless service in that area (I would love to get unlimited 3G data service for $40/mo).
If it would give them better service
Does this mean they will cancel my SERO Plan?
Or will it mean they will allow it on any new phone?
anything you got under contract would grandfather in
haha that's my only concern.... as long as i get to keep SERO and new winmo phones don't require getting a different plan, i couldn't care less.
I need some clarification please.
Sprint has 3G in only 3 cities? where? The moon? Antarctica? I've been to 5 midwest cities and have 3G in all of them...
And Hesse has done wonders for Sprint. Gary Forsee was the CEO that ran Sprint into the ground.
Maybe do some research before you troll.
I was kidding. I know Sprint has 3G in more than 3 cities, I was just joking.
Gilbert, you weren't funny.
According to Wikipedia,
T-Mo USA = ~$17.1 billion revenue
Sprint = ~$35.64 billion revenue
Someone mind enlightening me?
T-Mobile USA is a subsidiary of Deutsche Telekom, which I believe is Europe's largest telecommunications company... Wiki gives ~61 billion euros in revenue, which is about $89 million if Google is to be believed.
Billion, not million, the exchange rate doesn't work that way... (as an American, it might be nice if it did :P ) I'll just edit that comment... oh, wait.
I think you mean $89 billion, Epsilon-Not. But yes, T-Mo USA is owned by DK (the other T-Mos of the world).
This would be very, very interesting. Anything to push AT&T along with faster 3G would be helpful though (this is assuming T-Mo would jump to WiMax right away).
lol
But seriously, that's be one easy way for T-Mobile to expand their US market, compared to the lame service and coverage they have in the states, not to mention the crappy 3G.
Here I'll just pray Sprint don't even look at them.
Mega-Japan.. what? Crappy 3G network? If you mean the coverage, yes, but the 3G itself is godly. My G1 constantly beats out my father's iPhone 3GS and my cousin's Palm Pre, both having 3G network in New Jersey (one of the best, 3G everywhere coverage states).
@Gilbert:
That's nice to hear, but here in New York (right next to New Jersey), T-Mobile is probably the worst of the 4. In terms of coverage, I would be right in the middle of the city and get only 2 bars. Wut? And when I traveled to Long Island, boy say hello to the call drops.
Sprint has the fastest 3G network in this city, constantly beating my friend's iPhone and Blackberries.
@Mega-Japan - T-Mobile clearly has the least amount of coverage across the US (both 2G and 3G), they'll admit that. Sprint is generally next in terms of shear coverage, but their 3G is generally the fastest and most consistent (T-Mo's is also quite good as Gilbert mentioned, but the coverage is almost non-existant). Both AT&T and VZW have massive amounts of coverage, most of which is 3G on VZW while AT&T is catching up (slowly it seems).
Combine T-Mo US and Sprint and throw in the resources of DK and you could potentially have a huge, fast, and reliable WiMax network.
That's kind of hard to believe, considering NY is a key 3G and voice market for T-Mobile. Maybe karma has you beat?
Eh, I have no idea, I left T-Mobile about a year ago because of said coverage problem.
And I just couldn't be happier with Sprint in BOTH speed and coverage.
T-Sprint? I just can't like the idea of Sprint being under T-Mobile. At least I hope, if this happens, that the current Sprint plans (best out there), don't even get touched.
Well, I have been to NYC 2 times for trips and I traveled through half of the city and many different points, my 3G was just as strong as in my home town. Long Island is up for debate. Of course, you left T-Mobile last year. You probably haven't experienced 3G yet since they started rolling out the time the G1 came in, almost at the end of the year (late October).
@OsoOto:
Experience as in use it 24/7, no. But I've used my friends' G1 a lot, as well as some SideKick LX 09 a few times. Speed wasn't nearly as fast as the speed on my Touch Pro. It could be because several factors though, signal strength being one of them.
Then I honestly don't get it... why is it fast for me and not for you? Well.. no matter. Not the company but the 3G, and if Sprint is better for you, than so be it :P
I don't get the synergies in any potential acquisition. T-Mobile US customers won't be able to expand their service area, given that they're on GSM and Sprint is on CDMA, right? Unless Sprint goes GSM, which would be amazing, but unlikely, given the millions of customers on CDMA phones. Could somebody explain this to me? It's kinda confusing.
T-Mo USA uses GSM and is currently deploying HSPA 3G (their behind a generation pretty much). Sprint uses CDMA with EVDO 3G and is deploying WiMax. Nextel uses iDEN, which is a Motorola technology.
It's very confusing, but combining the 4G networks (LTE/WiMax) could be very beneficial. The combined company could run an all-WiMax network, and the resources of DK could really speed up the deployment of that. Both AT&T and VZW are committed to LTE, so T-Mo/Sprint would be the only WiMax network.
CDMA is superior to GSM, so why would Sprint want to do that?
Hopefully they won't bother until they go LTE.
CDMA may be "superior" (I personally disagree), but the world is moving towards GSM for 4G (LTE is a GSM standard, VZW is moving to it - Sprint will be the only CDMA carrier left). Europe is already almost (if not all) completely GSM anyways, that's why VZW always puts out "World Phones."
Sprint has already committed to WiMax anyways, so you won't be seeing LTE from them. I highly doubt T-Mobile/DK would want to dump the WiMax network anyways since Sprint is going to be the first carrier with a national 4G "network."
@MRCUR:
Sprint can go for both WiMax and LTE.
http://gizmodo.com/5167321/sprint-testing-lte-equipment-whither-wimax
Hopefully that is true and Sprint can just have both.
Instead of thinking about current wireless technologies like GSM/CDMA/iDEN think about the future which will WiMAX and LTE. Clearwire is currently building out the WiMAX. However one interesting tidbit is the equipment selected for the WiMAX network is also designed to run LTE, so while the company is deploying WiMAX technically they are not locked into having a WiMAX only network for the long term.
GSM/CDMA hybrid phones please
@Mega-Japan - Ah, forgot about that. So really, this merger could be fantastic for both companies. Combined with the resources (like I keep saying) of Sprint's current 4G network and the $$$ of DK, T-Sprint could have a fantastic 4G network much faster than the other guys. I'd definitely go for a carrier that really pushes 4G quickly and inexpensively.
Well, with Verizon proving that CDMA to LTE hand offs are possible and T-Mobile heading to LTE, and LTE and WiMax being shown to operate on the same network infrastruture hardware with the right software... its possible...
There is more network potential here than Sprint and Nextel ever had...
That being said, I don't know that its still a good idea... but... we'll see.
Well, it's being said that Sprint is testing LTE, so who knows...
http://gizmodo.com/5167321/sprint-testing-lte-equipment-whither-wimax
finally, it will be nice to have a signal at my own house
As long as they don't touch my SERO plan, my super fast 3G connection with 4G around the corner, my roaming agreement with Verizon, then they can do whatever they want.
O hell yes!
While working for Sprint last year, I heard lots of rumors similar to this. This wouldn't be the first time that T has submitted an offer.
I just don't get why Sprint can't pull itself outta the hole... decent phones, good plans, good coverage (at least where I've been)... all this seems to be going for them
maybe it's because they, historically, have been the "we'll accept anybody" carrier. in this case, quantity does not equal quality
Hmm, this could be the upset we need to get 4G up and running ASAP.
cell phones companys should just become a monopoly
all of them to be one
i would like that
You mean the old AT&T?
no i mean everyone
att sprint tmobo
and all thoes lil ones
that ways its not so hard to get good service
That's what he meant by the old AT&T.
But you know the consequences of that happening right?
$130/month for unlimited minutes + $40 for unlimited data + $20 for unlimited texting... yeah...
oh ok i was confused for a sec.
but ya except thoes high prices
just look at metro pcs
they suck but got good prices
so imagine an iphone with unlimited all for only 50$
are you high? combining ATT, Sprint, T-Mobile, and Verizon would be a complete clusterfuck with all of the network problems, billing, etc, etc...
And also, it would mean that you would have no cell phone service because then you would have one cell phone company that could do whatever the hell they want with no consequences and no competition. competition is what drives most every industry, especially the wireless one.
ugh i hate competition...
it should just be cheap and great
@old man horton
i dont see your little rant about competition applying to the text messaging rates, they are all the freaking same across the entire industry
So where's the UK screaming about monopolies? Oh that's right its not an American company that's doing the buying this time.
*coughs* That should be the EU.
Does Sprint have any European operations? I was under the impression that they were mostly a US-only company. (Though, maybe I'm wrong)
Sprint only operates in the US, with no international partnership as far as i know (like the Verizon/Voda deal)
@Epsilon-Not - I believe John Doe was talking about Deutsche Telekom (of which T-Mobile is a subsidiary). THEY are the ones planning on purchasing Sprint.
I think it's a good point as well. When I was in Canada last week, some guy kept trying to tell me that "'the States' have the worst monopolies in the world (for telecommunications)." While I would normally agree, in terms of cell carriers - we really aren't that bad. Rogers wireless in Canada has a pretty tight hold on the market. The only big time competitor to them is Bell, and on occasion, Telus. I believe FIDO is subsidiary of Rogers, which makes Rogers the ONLY big time GSM player in Canada, since Bell and Telus are CDMA (if I'm correct).
Stateside, we have had T-Mobile since the early days of VoiceStream, AT&T of course, Verizon, Sprint, and a great abundance of smaller carriers scattered around the country (MetroPCS, Virgin, TracFone, Alltel, US Cell, ect.) Now with the T-Mobile/Sprint-Nextel merger, it would create another powerhouse, but the way I see it - that would be creating MORE competition between Verizon, AT&T and T-Mobile. For the longest time, it seems T-Mobile was regarded as the little guy, with the least amount of customers, and coverage in the U.S. (Don't get me wrong, I am a T-Mobile customer and will continue to be -they're just so damn good!)
If this merger completes, I think it just may make big red (VZW) and AT&T sweat a little. I only hope that it will not effect T-Mobile's already awesome customer service, pricing, and call quality - they're the reasons I have stayed with them for so long.
But I mean, what authority could the EU have if one of the two participants in the merger isn't in any EU country? I mean, it's the US's job to regulate competition in the US domestic market, not the EU's.
You're right, ultimately it is up to the U.S. government to allow the merger. Bear in mind T-Mobile USA is not the same as T-Mobile. T-Mobile USA is U.S. company (we don't say "USA" when we talk about it, but it is the company's name), and T-Mobile is also company in the EU. They are both owned and managed by Deutsche Telekom (HQ'd in Germany), but from a technical standpoint, they are separate companies (subsidiaries). Although the oversight to purchase Sprint would be coming from DT in Germany, T-Mobile USA would be making the actual acquisition. In short, Sprint = U.S. company, T-Mobile USA = U.S. company that is a subsidiary of a foreign company. Two U.S. companies merging.
Even if I thought this was a good idea, which I don't, I can't see this deal being approved by the DOJ, FCC, FTC, and whichever else US government agencies have to sign off if the Germans actually make an offer. I also assume the EU would have to approve the deal also.
Why would it make a difference where the money comes from???? We're talking about a purchase of a US carrier which would be fused into T-Mobile US, not T-Mobile DE. T-Mobile US is a subsidiary of a German parent company, which obviously at some point was approved by FCC and others to buy VoiceStream, Powertel and merge them into one company called T-Mobile US. If the government approved such ownership at some point, I don't think there was a clause that said "It's ok for Verizon to bid on Sprint but it's not ok for T-Mobile to bid on Sprint". If the US government would suddenly say that T-Mobile US can not bid on Sprint but everyone else can, then T-Mobile could file a complaint with WTO regarding an unfair treatment and uncompetitive practice.
Below is a little excerpt I found on the web..
Full article.. http://www.rcrwireless.com/article/20081103/WIRELESS/811039989/t-mobile-usa-foreign-ownership-dust-up-145-much-ado-about-little-or
"The FCC has the discretion under the more relaxed statute to actually allow 100% foreign ownership in a U.S. wireless carrier, with deference given to acquiring firms located in countries — like Germany — that are members of the World Trade Organization."
The issue with the cellular telecom market is that service varries by reigon. All the carriers excel at one thing and suck at the rest. I detest Verizons crippled consumer phones. You need to spend quite a lot to get a good phone with them (Blackberry.) I hate how AT&T charges insane 1980s amounts for data. Sprint and T-Mobile are OK service and price wise, but go into coverage, and they loose.
The merger if it goes through would be a good thing.
Verizon is not into crippling their phones anymore, get over it already. And every blackberry for Verizon is now $49.99 except for the tour which is $149.99. That's just about the same (or less) than you'll pay at any other carrier for their own blackberries
this sucks,in a way cause sprint has the best plans out their. if this happens, the sprint name and its plans will go bye bye. this means i will have to give up my pre and its awesome plan. so when we are forced to stupid t-mobile i will probally have to get a cheap phone since it would cost more to have a my touch with its data plan i would have to get. i hate it when this crap happens. i would rather them phase out the t-mobile name and make them switch to sprint with its wimax tech. or do something like its t-mobile with a combo of sprints everything data and simply everything plan.
if i remember the government would not allow foreign companies to buy sprint because they own land lines. unless they don't anymore. this was a while back that i read about that.
Sprint's sold their landline division (spun off as EMBARQ, now part of CenturyLink), however, they do still own a nationwide long distance / backbone network.
However, if that was really still an issue, Deutsche Telekom would probably just look for a US buyer of those operations and keep the cellular ones, which is presumably what they want anyway.
DT has a lot and I do mean lot of money....the thing here is, if that does happen, that is a significant investment in America. With a potential, high potential of an MVNO in NTT Docomo....It would put T mobile in a good position, as far as aquisitions and other investments. Boost then would not be driven by iDen, just all types of cool stuff would come...
Didn't ATT do this a while back in the infancy. ( Suncom, ATT, Cigular )...
I firmly...believe this is a most positive move, despite the technology differences. In fact, I think T-Mobile, to increase their footprint, should merge.
Doesn't this rumor keep coming up every year? I swear this is the 4th time I've heard this since the Sprint/Nextel merger.
This rumor must be written and spread by people with brain damage. Like Hesse just admitted in the latest interview, merger with Nextel was a mistake. Can there be a sane person dare to imagine a TMO USA with GSM-UMTS/CDMA/iDEN/WiMAX network under one umbrella?
more imprtantely when ever it happens it will be the t-mobile cup or some other crazy name.
I think some may miss the best part of T-Mobile buying Sprint. Sprint is a backbone carrier. If T-Mobile owned those backbone connections, their costs wiring towers to local switches go way down and bandwidth at those towers go way up. In fact, T-Mobile could just eliminate the entire Sprint wireless division, and it'd still be a great purchase.
T-mobile, Sprint, Android and WebOS... ooh the possibilities!
This is not new to me. Back in 2007 (Fall) their was a article about Deutsche Telekom thinking about acquiring Sprint-Nextel. I even told one of the T-Mobile employee about it and he told me it was just a rumor. It was funny to me, their was a woman who wanted to get service, when she overheard what I said, she was hesitant about joining, because she said she owes money to Sprint-Nextel and was afraid that T-Mobile would be asking for a deposit. So who do I believe?
Hopefully this would help my purchase of Sprint stock! Thank goodness my Palm stock doubled in 4 months...........Sprint......not looking too healthy lately!