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T-Mobile CFO: Merger Talks with Sprint will Definitely Happen

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About a week ago, Masayoshi Son, the chairman of Sprint, had stated that a merger with another major US wireless carrier, T-Mobile, would be a priority for Sprint. This week, T-Mobile has now chimed in regarding the potential merger. During a recent conference held in New York City, Braxton Carter, the chief financial officer officer of T-Mobile, said that merging with Sprint would be a very sensible decision. Carter went on to say that merger talks would be all but inevitable.

Among the Big Four carriers in America, T-Mobile and Sprint currently sit as the third and fourth largest, respectively, behind industry leaders Verizon Wireless and AT&T. If a merger happens between T-Mobile and Sprint, they would effectively join forces to form a third player that would challenge Verizon and AT&T in the US mobile market.

Carter has suggested as much when he said that a T-Mobile-Sprint merger would allow the combined entity to reach the margin potential that both Verizon and AT&T possess. Moreover, it is no secret that Sprint holds a considerable collection of 2.5 GHz spectrum, something that T-Mobile, or the resulting merged entity, could take full advantage of in trying to improve network quality and coverage. According to Mike Sievert, the chief operating officer of T-Mobile, there is a good possibility of a merger happening between the two carriers, but T-Mobile will only agree to such if it can raise its shareholder value.

President Barack Obama’s administration had discouraged industry mergers, like that potential one between T-Mobile and Sprint, preferring instead to keep the Big Four carriers as they are. But now that President Donald Trump is in power, that could all change.


Source: TMONews

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52 comments:

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  1. Watch SPRINT​ drag it all down Tmobile has way better lowband spectrum. High band spectrum has always been garbage outside the cities. It just doesn't have the penetration and coverage bang for the buck that lowband has and it never will. A big reason why Attand Verizon has always dominated in coverage traditionally vs T-Mobile and Sprint is because not only is their Network bigger they also have had lowband primary channels for years . SprinTmobile s primary bandwidth​ has always been the weaker highband frequencies. T-Mobile has loads of newly purchased 600 mhz lte lowband which in the near future will allow them to offer Verizon like coverage nationwide. Sprints weak highband offering really adds little.

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    1. It'll help reduce network congestion in populated urban areas, but I don't see the point in merging with a carrier so toxic that the head honcho is begging them to take it over.

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    2. All of this merger talk is already a drag on TMO.

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    3. THE HIGH-BAND WILL BE PERFECT FOR THE TOWER CABLE BACK-HAUL THAT T-MOBILE HAS AND ADD THE 800MHz SPECTRUM WHICH SPRINT CONTROLS WOULD GIVE T-MOBILE BETTER COVERAGE IN LTE ALONG WITH 600 AND 700MHzs. WILL SPRINT MERGER DRAG T-MOBILE IT DEPENDS WHO IS AT THE HELM OF THE COMBINE CARRIER. MOST LIKELY JOHN LEGERE WILL BE RUNNING THE SHOW SO I WON'T BE TOO WORRIED ABOUT BEING DRAGGED DOWN.

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    4. Americans use T-Mobile and Sprint for cost effective bandwidth. Improving the network is good, but not at the cost of good competition. Today, if customers want good network coverage they use Verizon or ATT. If they want cost effective bandwidth they use T-Mobile or Sprint. We do not need a merger to fix whats not broken!

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    5. stop thinking in the present! with the forthcoming 5g services, a merger would both use t-mobile low bands for coverage , and sprints high bands for delivering 5g services in congetsed urban areas. it will be a win-win.
      and, there is nothing stopping a cable company like comcast from merging ith dish, which has tons of spectrum , to form a 4th carrier. and, that carrier could also merge with us wireless, the large regional 5th carrier.

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    6. "but not at the cost of good competition"

      You're forgetting one thing:

      Sprint isn't good competition.

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    7. I don't think this would be a win. It would be a loss. It would be better to have both T-Mobile and Sprint in competition for the 4G and perhaps the 5G customer. Without competition, price will put 5G out of reach for the typical T-mobile or Sprint customer. Comcast is irrelevant to this discussion for numerous reasons.

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    8. AT&T and Verizon use the size of their network as the reason for their high prices. In some places, especially rural areas, you get T-mobile or Sprint. A T-mobile/Sprint merge would create a third large network. Give the big boys a run for their money. Consumers would benefit from this competition. 800mhz and extra 850mhz from Sprint; 600mhz,700mhz from Tmobile and the combined towers, they would cover the country. Sprint has 40 Billion in debt, 79 Billion in assets, some of their spectrum is leased out to other entities - which could be inconvenient. Now we wait.

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  2. Wait for the next churn results to come out, everyone i know left tmobile cause their signal is sucking badly now. They got a lot of new customers and they cant handle them, their network cant. tmobile always offers pie in the sky but it never seems to get here. I moved on to att.

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  3. This is bad news. No matter how lousy each of the service is, less choices always hurt the consumers in the end. My $30 T-Mobile secret plan is good while it last : (

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    1. The 100 minute plan was never good.

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    2. The $30 T-Mobile Secret Plan is available on eBay for only $69. You must fund the plan, so it's $99 for the first month.

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    3. eBay also has a 2nd T-Mobile $30 plan/SIM for sale for $100.75. Free shipping. First month cost to you is $130.75.

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    4. One of the $30 Secret Plan SIMs sold for $79 on eBay May 15.
      eBay item number: 122495350440

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    5. This plan is not that great anymore. How stupid would you have to be to now pay these high prices for it.

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    6. The $69 eBay item, Tmo secret plan will sell quickly. All the speculator-activated SIMs are time limited, and the one guy dropped his price $10 after selling the first one. After these are gone, you will only be able to buy it from a customer who is walking away from their phone number. Very small group of people, and the price may go higher since the plan will be funded.

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    7. Somebody would have to pay at least $45/month to get 5GB full speed data on a current T-Mobile network plan. At that price they would not have roaming off the Tmo network. $50/month on MetroPCS gets them roaming.
      So if 100 minutes (+10c/extra minute) works, the $69 eBay SIM/plan pays for itself in less than 4 months.
      It would be stupid for someone to pass it up just because they can't do the math.

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    8. Correction: US Mobile costs $37/month for 100-Unlimited-6GB, plus about 10% tax, $41. No roaming though. $4 SIM.
      eBay $30 plan @69 pays for itself in less than 5 months.

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    9. I can do math, but I had now idea T-Mobile plans have become so expensive. How is this company adding customers at these prices? Why not just look elsewhere?

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    10. forget about getting the secret $30 plan. just head over to mint sim, a division of ultra mobile, for an even better deal.
      and, you don't have tp pay an uotrageous fee to buy a sim card from ? on ebay. could be sombody running a scam.

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    11. New division of a company that can be dumped at any time cause it could not make it on ultra-thin margins; pay 12 months up front and it still costs more than the Tmo $30 plan; give up voice and sms roaming:
      No Way.

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    12. what? so the $30 plan is so secret that it is not offered by tmo anymore? hahahaha

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    13. The longest running plan in wireless, 5+ years. And people are paying a premium on eBay to grab it. This deserves some kind of award, since no current individual plan can beat it.

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  4. What would a merger between Sprint and TMobile look like? Would it be combined bandwidths for TMobile and Sprint spectrum for new handsets? Would the companies remain separate, but under one owner? Would current Sprint, TMobile handsets become obsolete? Would current TMobile/Sprint MVNOs still exist? If it happens, I hope this doesn't become a major disruption for current customers of each service provider.

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    1. I'd bet it will be like the MetroPCS takeover... Sprint/Boost/Virgin will be an empty brand name, with slightly different plans and pricing, using TMo phones on TMo's network. The customers are what they want, to hell with the network or their assets. Sure, maybe they'll get some use out of the spectrum, as one more LTE band on their handsets, but those are trivialities and not what's driving the deal.

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    2. 1. T-Mobile CEO would be in charge of the combined company, which could also be structured as a partnership like the old Verizon Wireless.
      2. Old handsets will continue to work, at least for a few years. New LTE phones will eventually aggregate bandwidth from combined spectrum holdings. Spectrum will be redeployed as needed to maximize coverage, capacity and speed.
      3. 5G will eventually make all handsets obsolete. Most current ones will be supported during a transition period. Expect new interim handsets with support for different aggregation of LTE bands. 2.5GHz spectrum is ideal for 5G, and the antennas are much smaller.
      4. MVNOs will exist, at least until their contracts must be renegotiated. There will be changes. Marginal MVNOs may not accept new contract terms.
      5. No major disruptions. The combined company will have about the same number of customers as the other 2 major carriers, and they will want to grow, not shrink.

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    3. It would be smarter to not combine the companies until true 5G is deployed, otherwise many previously T-Mobile customers would defect to [email protected]

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    4. It would be dumber to wait to merge until after 5G is deployed. They would have to redeploy using different network equipment/antennas/software/handsets and spectrum. A waste of time and money for both Sprint and T-Mobile.

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    5. They would have to redeploy for 5G regardless, and would then use common hardware. If they wait to combine the brands, they would retain more customers.

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    6. Sprint and T-Mobile are testing different solutions for 5G, and they have different strategies. They are not going to agree on common hardware, software and solutions before they merge, and they can't wait to test and finalize 5G plans. They will push for a merger ASAP while the regulatory climate is more favorable, or go their separate ways.

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  5. I think that the best thing that could happen is Sprint is wiped off the face of the earth and its customers get (generally) better Tmobile service and coverage. One thing is fact. Sprint has been promising for YEARS and NEVER deliver. It's always Next year, next time, next quarter. It's worse then waiting for Godot. It NEVER happens. Tmobile on the other hand has gone from a weak anemic 30 plus million last place network into a beefy robust middleweight that can move like a lightweight (prices) and hit like a heavyweight (metrics, money, buildout , 600 MHz LTE bandwidth purchase). Oh , and they have John Legere, MR. Tmobile. lol. Granted, Tmobile is far from perfect but every network has its haters.. except Sprint which is lucky to have a few likers.. lol

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    1. Wrong! The best thing to happen would be for the FCC to proactively torpedo this merger.

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    2. Highly unlikely given the FCC stated preference for a light regulatory touch. FCC says they will focus on likely benefits to customers, not just the number of competitors. Wheeler's FCC rejected merger benefits out of hand based on stated desire to maintain 4 major competitors. Pai's FCC will give merger benefits the consideration they deserve.

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    3. I am not seeing any benefits to customers if this merger is allowed. I believe rejecting the T-Mobile merger attempts was Wheeler's most beneficial action for the customer.

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  6. You can look at the Charter / Time Warner merger to see what will happen... Cheaper plans will be eliminated, lots more fees thrown in, service will actually be inferior, less profitable customers will be summarily dumped, many thousands of employees will lose their jobs, resellers will get screwed over. It's all a shareholder bailout for SoftBank, who bought a struggling company and ran it further into the ground. No one else stands to benefit, we all lose.

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    1. Correct! I could not have said it better.

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    2. This is exactly what I see happening. I will port to Verizon at the earliest opportunity.

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  7. Wishfull thinking from someone who wants to keep 4 major competitors - Sprint Merges with US Cellular . Not gonna happen.

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  8. Will Sprint eventually merge into Sprint or stay it's own company?

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    1. My guess is that TMO will be a sub-brand of sprint until it goes away in 1 or 2 years.

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  9. If you can tell the future what will really happen rather then just speculation, you'd be in Las Vegas or Wall Street, not wringing your hands over what may or may not happen in Wireless (or anything else). At least I would be. My guess is that the experts know no better then any single opinion here including my own. Who knows what will happen? Que Sera, Sera, whatever will be will be. Like the rest of life.. lol

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  10. Let's hope that Sprint's terrible network finally dies the rapid death it deserves and all it's spectrum gets transferred to expand T-mobiles existing network. Sprint's PCS Band 2 LTE literally runs out 1 1/2 miles from the tower then its either back to EVDO, [email protected], or their severely overloaded 5 mhz wide channel LTE channel cobbled from the their meager former Nextel spectrum holdings. Meanwhile you've still got LTE on AWS band 4 with AT&T,T-mobile and VZ the same distance away. Sprint's engineers were never able to get their network to work right.

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  11. We need more competition, not less.

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    1. You won't have any more nation-wide carriers with their own network for full-service cellular. Dish will probably just build a cheap IoT network so they can keep their spectrum.
      It would be much better to have a strong #3 that can really kick the duopoly in the butt, rather than the weak and moderately competitive national carriers we have now. Merging is the only way to have the extra $billions needed every year to make the network truly great nationwide and keep it that way. And at the same time the revenue to keep offering disruptive plans and innovation that draws more customers.
      It's the effectiveness of the competition that counts in wireless, not the number of companies. And with Legere in charge, the combined company will deliver.

      Delete
  12. Legere is reason enough to jump ship he is not saving anybody!

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  13. Huh, yet another comment deletion.

    Must've been too optimistic.

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  14. $30 "secret" plan had 5gb of tmobile data which is enough to watch 1 hour of youtube for 20 separate days. Is that worth carrying around a heavy smartphone for 17 hours a day for 20 days for that one hour of actual usage?

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    Replies
    1. No; I prefer to carry a light smartphone. So do a lot of other people. ACSI's smartphone satisfaction survey polled 36,194 customers randomly selected between May 2016 and April 2017. The iPhone SE hit the top spot with 87 points.
      http://appleinsider.com/articles/17/05/23/apples-iphone-se-iphone-7-plus-take-top-spots-in-customer-satisfaction-index

      Delete
  15. Sprint should buy US Cellular. T-Mobile finally has enough spectrum to build a real national network and does not need Sprint.

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    Replies
    1. Sprint doesn't have money to buy anything. If they don't merge, they'll just go under.

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    2. People who use USC seems to like it, and it is a profitable company. Sprint would turn it into a failure.

      Delete
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