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Update: Agreement Reached - T-Mobile-Sprint Merger Could be Finalized Over the Weekend

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Over a couple of weeks ago, there were reports that T-Mobile and Sprint were continuing merger talks. This report follows last year's announcement that the two wireless networks have ended discussions after not being able to agree on mutually beneficial terms for either party. And now it looks like those merger talks may be coming to fruition in the next few days.

As reported by Reuters and The New York Times, it looks like Sprint and T-Mobile are already in the final stages of its merger agreement. The report shows that T-Mobile, under Deutsche Telekom, will own over 42% of the combined entity. In addition to this, the company will have 69% voting control so that it will be able to consolidate the company on its books.

The source, who requested anonymity, disclosed that the this union will have a value merger of around $24 billion. This means that Sprint shares would cost $6.10 apiece compared to their current $6.50 close in New York Friday. While talks of a merger were still ongoing, Sprint's shares spiked by up 14% to $6.62 in late trading before falling to $6.05 after hours. T-Mobile's stock price, on the other hand, increased by 2.5% on the news.

This is the third time the two companies attempted to form a merger. If it becomes successful this time around, the combined company would have 127 million customers, close to AT&T's 144 million and Verizon's 150 million.

 
If everything goes well, the merger agreement could be signed by the two parties over the weekend. Of course, there is still a possibility that talks could fall apart while they iron out long-contentious issues. The deal is also subject to regulatory approval by the FCC, FTC and DOJ which is by no means a sure thing especially because both companies have majority foreign ownership. SoftBank Group Corp., a Tokyo-based company, owns around 85% of Sprint and Germany's Deutsche Telekom owns 64.78 % of T-Mobile USA.

Both companies have not commented on the topic.

Update April 29, 2018. T-Mobile and Sprint announced today that they have agreed to merge. It's an all stock deal that values Sprint at $59 billion, T-Mobile at $87 billion and the combined "New T-Mobile" company at $146 billion. Deutsche Telekom will own 42% of New T-Mobile, Softback will own 27% and shareholders will own 31%.  The combined company will acquire Sprint's $32 billion in debt.

T-Mobile's CEO John Legere will be the CEO of the combined company and T-Mobile COO Mike Sievert will be its president and COO. SoftBank’s Masayoshi Son and Sprint’s Marcelo Claure will get seats on the board and the board chairman will be Deutsche Telekom’s Tim Höttges.

The deal is subject to approval by Deutsche Telekom and Softbank and by all four companies' shareholders. Those approvals are virtually a sure thing. Approval by multiple federal agencies is also required and that is less certain.

I expect the approval process to take nearly a year. It will probably take several years after approval before the two companies' operations and networks are completely integrated. Expect business as usual at both Sprint and T-Mobile until the deal is approved. The companies have not announced what will happen to their many brands, including Sprint, MetroPCS, Boost Mobile and Virgin Mobile. I think that the Sprint and Virgin brands will eventually be retired and Boost will be folded into MetroPCS, but that's just my uninformed guess.



Source: Bloomberg

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88 comments:

Comment Page :
  1. Don't think it will happen. I don't think the Justice Department will allow the compitition to be reduced charging customers more for service. I could see Sprint merging with Combat or Charter Communications.

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    Replies
    1. good bye cheap tello plans

      Delete
    2. Hello to cheaper Tmo plans in more coverage areas.
      Goodbye Duopoly for millions who have been suffering for years.

      Delete
  2. Bad for customers w less competition. Prices will.go.up.

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  3. Don't want to see prices go up.
    Need competition in the market.

    ReplyDelete
    Replies
    1. It sounds like you have zero grasp on how business works.

      Delete
    2. Anon 7:43 seems to have a good grasp that less competition leads to increased prices.

      Delete
    3. "less competition leads to increased prices."

      'Fewer competitors = increased prices' is only true when the market is for commodities, or virtually identical services.

      Wireless services are not interchangeable across the whole US. A strong competitor can afford to build broader, faster coverage and provide an additional carrier's competition in rural areas. Besides, Legere is going to have all the ammunition he needs to win more subscribers from the duopoly. Do you really think he would STOP competing, or compete less? He and Claure say they will be able to offer lower price, not higher ones with all the savings from combined operations and increased buying power for equipment and devices. Makes sense.

      Delete
    4. http://money.cnn.com/2018/04/30/technology/business/tmobile-sprint-wireless-rates/index.html

      Deals like this have not helped reduce prices in the past, warned Bill Menezes, the principal research analyst covering mobile services for Gartner Research.

      "I can't think of another market where consolidation has been beneficial to consumers in that respect," Menezes told CNNMoney.

      "I don't see the benefits for consumers in a marketplace where Verizon and AT&T and new T-Mobile would be calling all the shots," said Copps, who was appointed to the FCC by President George W. Bush and also served during the Obama administration.

      Delete
  4. I don't think Sprint is in it for the long term either way. Would you rather they donate their assets to T-Mobile or would you rather they fade away?

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  5. SPRINT = DEATH
    I would only pick their dead carcas clean rather then absorb such a TOXIC SLUDGE

    ReplyDelete
    Replies
    1. They have 59 million syscribers and tons of spectrum. TMobile would be wise to purchase both these assets.

      Delete
  6. This seems like a great deal for Sprint, but a bad decision for TMo. They really don't need to add a big load of debt to the balance sheet.

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    1. Tmo needs a HUGE load of spectrum, and they aren't guaranteed that in auctions. They only have an average of 30 MHz of 600 MHz nationwide, and they need 100 to make effective 5G channels. Sprint is the answer.

      Delete
    2. See Figure 3 on page 5 for a comparison of spectrum assets of the 4 carriers.
      This article also does a good job of explaining the benefits of massive MIMO for improving both 5G and LTE networks.

      http://www.samsung.com/global/business-images/insights/2017/Massive-MIMO-Comes-of-Age-0.pdf

      Delete
  7. Sure, let the two junk carriers merge!

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  8. I've always been against this merger because I believe three national carriers is too few and we're all better off with more competition but I'll admit when I'm shopping for wireless service I look at AT&T, Verizon, T-Mobile and their MVNOs because all three have the coverage I need. I don't even consider Sprint as a choice, partly because their coverage has too many gaps and partly because it's too much trouble trying to find compatible phones that are also allowed by Sprint on the MVNO I want to use. It's always been easy with AT&T and T-Mobile and has gotten easier with Verizon but Sprint hasn't changed. Sprint has changed CEOs but little else. I would rather see some other company take over Sprint and actually try to turn it into a competitive carrier. The problem is there doesn't seem to be any company willing to take over Sprint. So this merger might be the best we could hope for.

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  9. Sprint's spectrum is far more valuable than its stock price represents. We need more competition not less. I hope the FCC blocks this sale.

    ReplyDelete
    Replies
    1. Huh? Sprint's market cap is $26B. The current deal reportedly values Sprint at $24B.
      For reference, TMUS market cap is $55B.

      Two relatively weak competitors can't afford to deploy separate nationwide 5G networks. They need savings and scale from consolidation to be strong competitor(s). Many readers here criticize Tmo and Sprint coverage and Sprint speeds. I'll bet most of them are against the merger, even though it would solve those problems.

      Does anyone think Legere will cut his hair, put on his old AT&T 'suit' persona, ditch the magenta shirt and Sidekicks and stop competing when he is in charge of the combined company? Hard to imagine that.

      Delete
    2. @Anon 10:03 --- a t-shirt and haircut does not equal a business plan. Legere can easily keep the outward trappings of being a "rebel" while gradually making T-Mobile more and more like Verizon and AT&T. In fact, for the past couple years, that's exactly what's been happening.

      TMo prices go up, there are more and more lock-ins through billing credits, they start swallowing up smaller regional carriers, and prepaid customer service gets shifted to India/ Philippines.

      Delete
  10. I wonder if all the Sprint MVNOs will become T-Mobile MVNOs?

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    Replies
    1. if it happens, Sprint will probably be treated like metroPCS i.e. marketing etc would be separate..

      Delete
    2. For a short while only I suspect.


      "AnonymousApril 28, 2018 at 8:14 AM

      if it happens, Sprint will probably be treated like metroPCS i.e. marketing etc would be separate.."

      Delete
    3. Anon 10:36 -- and then what? You think the entire Sprint brand is eliminated after a short while?

      Delete
  11. I hope this merger goes through soon. A combined company will be the only US carrier with enough spectrum to deploy mobile 5G nationwide. Verizon and AT&T don't own enough spectrum to do this, which is one of the reasons why they are experimenting with fixed 5G and limited mobile deployment using 'pucks.'

    The combined company, with by far the most spectrum will provide much more EFFECTIVE competition to the other two carriers. It is not affordable for T-Mobile and Sprint to field two mobile 5G networks across the whole US. T-Mobile doesn't own enough MHz spectrum or capacity for effective 5G channels, and would have to borrow heavily to buy it (3.5GHz), greatly slowing deployment. Sprint needs the 15,000 extra small cells to fill in gaps, and access to excess spectrum in the education band of 2500 MHz in rural counties. They can't deploy quickly enough with the $6B/year CAPEX in their current plan.

    Together T-Mobile and Sprint would have the best 5G mobile network speeds and capacity, fielded the fastest. I hope the gov agrees and gives them a speedy approval.

    ReplyDelete
  12. FCC Chairman Ajit Pai doesn’t appear to be as much against a reduction in U.S. carriers.
    “I don’t think any regulator who embraces regulatory humility and intellectual honesty about economics can say whether three or four or five is the optimal number,” Pai said in a Recode interview last year.
    As for the Justice Department, we'll see whether they argue that three major carriers constitutes a "monopoly." Oligopolies are not illegal.

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    Replies
    1. Interesting answer from Pai. The conflict between being a pro-industry--as opposed to pro-consumer, the public he supposedly serves--guy and a Verizon guy is real.

      Delete
    2. I guess you forgot that Wheeler was an industry guy too. But then, you agreed with him so it didn't matter.
      The FCC always wants people with industry experience. It's a complicated industry to regulate.
      Pro politicians (for FCC) are not the answer. They mostly look out for themselves. They don't understand much of anything related to business than what the lobbyists tell them. Making decisions that affect businesses (our economy) based primarily on ideology is a very bad idea - it hurts people.

      (See, there is more than enough cynicism balance to go around, from both sides ;-)

      Delete
    3. @Anon1213: If you were implying I might support Tom Wheeler because of some congruent political ideology, you'd be wrong. I know of him more as a CTIA guy, didn't even know of his political affiliation/background.

      I'll give you that these positions are hard to fill. That being said, I was surprised when Wheeler was picked to succeed Genachowski.

      Delete
    4. No, you're conflating para. 1 and 3. The latter stands on its own, and obviously doesn't apply to Wheeler or Pai.

      Delete
  13. Another twist on this, regarding those of us who use Twigby, a Sprint MVNO that roams on Verizon: If and when T-Mo merges with Sprint, would Twigby still be able to roam on a competitor's network? I sure hope so, as that's the best of both worlds.

    ReplyDelete
    Replies
    1. It's impossible to predict what will happen to roaming and MVNO agreements until after a merger occurs and the two companies networks and systems and networks are integrated.

      Delete
    2. I think you can say good bye to Sprint CDMA. So..... you will either see these Sprint MVNOs morph to GSM/T-Mobile or go away and I would say that many of the Sprint only MVNOs will just go away.
      I don't see where T-Mobile will be under any pressure to negotiate competitively priced contracts with these or down the road with any of their current MVNOs and IMO will significantly reduce competition, especially between MVNOs.
      This also puts less pressure on AT&T/VZw MVNOs to compete, look to see prices rise or at best stagnate.

      This will also relegate a lot of handsets to the trash bin, this will be at a cost to the consumer.

      Delete
    3. It depends on the roaming agreement. As long as Verizon or Sprint did not have a right to cancel the agreement (e.g., if Sprint is sold or merges), the deal would continue until its term or until one party chose not to exercise any option periods.

      T-Mobile could also allow Sprint customers to roam on their network if they have a compatible phone.

      Delete
    4. Verizon says it will shut its CDMA network in Dec 19, although it might extend that a little if too many legacy customers don't migrate to LTE.

      Delete
    5. A quick Google search says Verizon plans to shut down 2G at the end of 2019 and 3G in 2020. Where are you getting your information?

      Delete
    6. By "in Dec 19", I think he means "in December, 2019" which is consistent with the reports I've read that put the proposed 2G shutdown data as December 31, 2019.

      Delete
    7. @ Anon 12:58

      I think when Anon 11:38 said "CDMA network" he was referring to voice calling. Remember, Verizon's 3G network is data only, not voice, like Dennis said a couple years ago:

      https://www.prepaidphonenews.com/2016/07/verizon-wants-to-shut-down-2g-in-2019.html?showComment=1468537662022#c2432119686936469732


      So customers with non-LTE voice devices will be SOL by 12/2019, unless Verizon extends the cut-off (unlikely).

      Delete
    8. That's right. Twigby only roams for voice and sms on Verizon.

      Delete
  14. I am against a merger. Sprint coverage is fine for me. If it isn't for someone else, they already have the choice to pay more and go with att or Verizon. A merger does not mean the new entity is going to start adding lots of coverage to sparsely populated areas and giving people new carrier options. Att and Verizon didn't necessarily choose the coverage they offer, they are merely taking advantage of assets they bought from other carriers. Carriers who went out of business by the way. When att and Verizon act as essentially one carrier when it comes to pricing, the loss of one of the other carriers would be horrible for pricing.

    ReplyDelete
    Replies
    1. "A merger does not mean the new entity is going to start adding lots of coverage to sparsely populated areas and giving people new carrier options."

      This is not true, according to the Sprint and T-Mobile CEOs.
      They say they will invest $40B near term, extend coverage to rural areas faster, and open hundreds of new stores with thousands of new employees there.

      "..the loss of one of the other carriers would be horrible for pricing."
      No; prices will go down, according to the two CEOs. The new T-Mobile will be a strong competitor, and force ATT and Vzw to spend $Billions earlier than they planned in order to keep up.

      Go to the new website and hear the message for yourself. Your government will hear this message loud and clear.

      Delete
    2. Anon 4/29 @ 1:10 PM
      You think all Sprint & T-mobile stores will stay open AND open HUNDREDS of new stores AND hire THOUSANDS of new employees.....

      ...you're math is fuzzy

      Delete
    3. You really should see the CEOs' video.
      Their plan to open hundreds of stores in new rural coverage areas, not mine.
      I guess you missed the 'rural' bit.

      Delete
  15. I love it.

    Instead of two redundant networks, they can shutter useless stores and equipment in order to fully focus on expanding coverage, deploying 5G and paying off debt.

    Rather than less competition, we'd actually see more after Sprint's transition to GSM puts both it and its MVNOs back onto the competitive landscape.

    Sure, T-mobile will be a Cthulu-esque mess of self cannibalization, an Ouroboros like entity that constantly eats its own tail, but competition is competition no matter who it's with or against.

    The only downside would be if Sprint assimilates T-mobile and turns it into just as much of a mismanaged shit show.

    But hey, I'm on Cricket and have Verizon as a fallback, so I don't really care either way.

    ReplyDelete
    Replies
    1. "Rather than less competition, we'd actually see more after Sprint's transition to GSM puts both it and its MVNOs back onto the competitive landscape."

      That's like saying there's competition between Straight Talk and Tracfone.

      Sprint and T-Mobile become one entity, 'Sprint,' 'T-Mobile,' 'Metro PCS,' 'Boost,' 'Virgin Mobile' brands all come under one umbrella, number of nationwide MNOs goes from 4 to 3.

      "But hey, I'm on Cricket and have Verizon as a fallback, so I don't really care either way."

      Perhaps you should. Don't think the entire industry won't become less competitive (and more expensive, for consumers) if this goes through.

      Delete
  16. End of times...they are a coming, a merger with Sprint, will send us running. There's not much left, on the horizon, except AT&T, and Verizon. I not sure, what this will, perhaps two cans, and a string.

    ReplyDelete
    Replies
    1. Pay attention, and Count Again.
      It's not 'big 4;' it's big 7 or big 8.
      AT&T is now the #1 TV provider in the USA.
      Google offers TV and wireless.
      Comcast added more customers than AT&T and Verizon combined last Quarter.
      Charter is starting wireless service.
      Apple will sell TV service, and has been exploring a wireless network for a couple of years.
      DISH has to deploy their spectrum very soon or sell it; look for them to partner with a wireless carrier for 5G+TV.
      Competition has changed, and industry mergers just reflect the new market realities.

      Delete
    2. @1:04pm
      You don't know what you're talking about. There are in fact only four soon to be three nationwide wireless carriers. Comcast and Charter don't have their own wireless network and they won't be building one either because it's way too expensive to do so. Comcast runs on Verizon and Charter will run on either Verizon or AT&T. They're both just MVNOs. Google isn't a wireless carrier either, they're a T-Mobile and Sprint MVNO so they just lost one of their carrier partners. Dish won't be deploying anything and will almost certainly be selling their spectrum, probably to Verizon since Verizon and AT&T will now be trying to catch up to the New T-Mobile in terms of spectrum.

      Delete
    3. Get your head up and look around. Don't be stuck in 2016; do your research.
      Wireless+Video content combos are all that will matter. And there will more than "4." Wireless carriers can't afford to be just a dumb pipe or exclusive partner, and content providers need profitable wireless in the bundle to retain customers and make enough money to pay for their original content.

      If T-Mobile's video acquisition plus free Netflix doesn't work out, they will buy more. Sprint's Hulu deal isn't enough to complete the picture.

      Verizon and AT&T will get into a bidding war over Dish, yes. The loser has to buy more video content.

      Comcast, Fios, Dish and DirectTV are bleeding subscribers.
      DirectTV Now isn't making up for DirectTV cord cutters.
      Comcast and Charter have MVNO agreements now, but these are probably not the ultimate, profitable solution for them (Xfinity Mobile will lose money for years). Charter talked to Sprint a couple of times.
      Amazon will make the most of their new deal with Dish to partner on future “wireless projects,” including an internet of things network and a subscription cellphone plan, according to the WSJ. Their annual price $20 increase shows confidence in a Prime+wireless future.
      We can't rule out Google, with all their content, TV and Fi experience.

      Most customers don't buy wireless anymore. They buy combinations of wireless and video. Legere deserves credit for really kicking this off with Unlimited and Binge On. How many combinations will thrive? We don't know, but it's definitely more than 2, 3 or 4.
      The name 'prepaid phone news' is starting to sound quaint.

      Delete
    4. Your vision of massive integration of telecom and content companies sounds like a disaster for consumer choice and pricing.

      I want the companies that deliver data to my devices to act like dumb pipes because that's what they are.

      I want to be able to pick and choose the video content I want to watch on an open market and not have to pay for an overpriced bundle of unwanted services to watch a basketball game or a movie.

      Comcast, Fios, Dish and DirectTV are bleeding subscribers because customers are voting with their wallets against constant price increases on already overpriced bundled services, and in the Case if Comcast and Fios, lousy support and dishonest billing practices. Cable companies and mobile operators are already among the most disliked companies combining them will not make things better for consumers.

      Delete
    5. Not a 'vision' when it's happening now and the industry press has written hundreds of articles about it. More choice is good, and consumers will vote with their wallets. I prefer a-la-carte pricing, too but when you only have a choice of only one broadband ISP and they give away Unlimited TnT plus 100MB wireless (a data bucket to share costs more) for $2.08/month/line taxes, the choice was obvious for us.
      5G is going to shake up everything. My ISP better worry unless they have a better plan. I would gladly dump them for a 5G wireless+content bundle that offered the internet and video I want on any device, anywhere for less than I'm paying now.
      That is the 5G vision, and why the new T-Mobile is so interesting. The merger should help speed up everyone's US 5G deployment, and that sure won't be your fathers' wireless networks any more (RIP, Olds).

      Delete
    6. @4:28pm
      "Most customers don't buy wireless anymore. They buy combinations of wireless and video."
      Actually, yes most people do in fact buy stand alone wireless service because just about everyone needs wireless service while as you pointed out
      "Comcast, Fios, Dish and DirectTV are bleeding subscribers.
      DirectTV Now isn't making up for DirectTV cord cutters."
      A lot of people aren't paying for TV or bundles with TV anymore. It sounds like you are and so am I but that's not most people.
      And, yes Comcast and Charter did talk to Sprint but as you may have noticed neither bought Sprint which would have been much cheaper than building a wireless network from scratch.
      "Xfinity mobile will lose money for years"
      And they aren't going to lose any more building a wireless network.
      As for Amazon and Dish, as neither has a wireless network, the only way they'll be launching wireless services is as an MVNOs running on one of the remaining three wireless networks just like Comcast and Charter.
      So again, the very simple and easy to understand (for most) fact is that the US has gone from four nationwide wireless networks to three. Meaning we lost one and gained nothing.
      Would Sprint have survived as a national wireless carrier on their own? Probably not. But someone would have bought Sprint before they went out of business preserving the fourth nationwide wireless network (possibly under a new name) and with it the competition it provides.

      Delete
    7. Some are living in a small world here, apparently. The vast majority of wireless customers have a postpaid plan. And the vast majority of those people's plans bundle or heavily discount access to video services.
      Hint: Zero rating just means it is not separately priced.

      Delete
    8. Carriers bundling content; no more 'dumb pipes' when they control the content.

      https://www.wirelessweek.com/blog/2018/05/new-package-mobile-content-delivery

      Delete
  17. The latest from the WSJ as of 12:04 PM EST
    The boards of T-Mobile US Inc. and Sprint Corp. have voted in favor of a merger of the two companies, which could be announced later Sunday.

    ReplyDelete
  18. Apparently the deal is now done. No debt will be incurred as it is an so stock merger. Now we have to see if the gov approves

    They will certainly need to shut some stores. T-Mo had four in my small City. Sprint has five or six. Metro has three, boost three.

    I wonder what will become of their whole opened mvnos metro, boost, and virgin. It seems to me they will have to consolidate those.

    ReplyDelete
    Replies
    1. "No debt will be incurred as it is an so stock merger."
      Mergers don't make debt vanish. The combined company will acquire Sprint's $32 billion debt.

      Delete
  19. the old verizon can-you-hear-me-now guy who became the sprint guy will now become a tmobile guy.

    my guess is tmo will let the whole string of sprint mvnos keep on going but letting only the strongest stick around depending on however they creatively change their arrangements. and all us folks on sprint mvnos will probably eventually get less while paying more. but when the sprint cdma side of the merged company finally is phased out and dies, then a whole bunch of sprint mvnos will die also.

    haha it will be a little whimpering reluctant shock for my old sprint cdma iphones if they let this merger actually go through.

    ReplyDelete
  20. "T-Mobile and Sprint are using 5G to push their merger, launching a 5GForAll.com website. “The new company will be able to light up a broad and deep 5G network faster than either company could separately,” the announcement claims. Using Sprint’s 2.5GHz spectrum, T-Mobile’s 600MHz airwaves, and other assets, the two companies claim that they’ll be able to create “the highest capacity mobile network in U.S. history” that’s expected to offer 15 times faster speeds on average nationwide by 2024.

    The two companies also say that their merger will be good for U.S. job growth. The combined T-Mobile-Sprint will employ more than 200,000 people out of the gate, and the new T-Mobile intends to invest up to $40 billion in its network and business in the first three years. “This combination will also force AT&T, Charter, Comcast, Verizon, and others to make investments of their own to compete, driving billions more in accelerated investment,” the companies say."
    -Tmo News today

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  21. "Only the New T-Mobile will be uniquely able to accelerate the country’s position and quickly deploy a broad and deep nationwide 5G network that will deliver better service and lower prices to consumers across all parts of the U.S. We will supercharge the pro-consumer, Un-carrier strategy to bring sustainable competition into the marketplace and create new jobs starting day one. As the 5G era accelerates, this consumer obsessed company will deliver innovation that customers demand and bring its disruptive nature to adjacent industries to force change for consumers everywhere."

    “This combination will create a fierce competitor able to deliver lower prices, more innovation, and a second-to-none network experience"
    – John Legere, CEO of the New T-Mobile

    S: allfor5g.com

    ReplyDelete
  22. Before making more dire predictions, you better watch the message from the two CEOs on the new website. It's populist, directed straight at the gov.

    https://allfor5g.com

    ReplyDelete
  23. a couple of important points: first, t-mobile isn't really buying sprint/boost/virgin mobile, they are actually buying a boatload of valuable data spectrum.
    second, both lte and 5g are a form of gsm. hence, cdma will die within a year or two anyways.
    third, there is nothing to stop a cable company like charter or comcast from getting together with dish network, which has a ton of the same type of spectrum, to form a 4th national carrier.

    too many posters are prematurely hitting the panic button. they want to compare a post-merger market here with canada, completely ignoring the vast area/size and sparse population of that country. comparing apples to oranges.......

    ReplyDelete
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    1. Think the stock price of VZ & T go up or down on Monday and also when/if the Tmobile -Sprint merger is approved ? Less completion leads to higher prices for the consumer and is generally reflected in higher stock prices. It's not panic, just economics.

      Delete
    2. Anyone who didn't sleep through Econ knows that it is the quality and effectiveness of competition that matters, not just the number of competitors.
      That is even more true when mobile networks cost $ Billions/year to build, operate and modernize.

      Delete
    3. @ Anonymous April 29, 2018 at 7:24 PM Still will lead to higher prices. Not all products (cell providers) need to be exactly equal to be competitors.

      I'm on VZ, as I travel for business, my wife and kids are on Sprint, at 1/2 the price I pay for VZ. Their Sprint service performs just as well as my VZ service in our home community and all the places we vacation around the country.

      I'm willing to pay a premium price for my service, but there is no need to pay Double for the other three lines of service. In this instance, and I'm sure many others that read this blog, VZ does not provide any additional value above Sprint or that of a Tmobile-Sprint merger.

      Delete
    4. It's about the future, not the present. There are not enough of 'you' to pay for a nationwide 5G wireless network, let alone a great LTE net.
      Weak competitors don't move the duopoly out of their Lazyboys.

      Delete
  24. GET READY FOR THE INVESTMENT ARMS RACE, BITCHES!

    NATIONWIDE GIGABIT 5G HERE WE COME!

    ReplyDelete
    Replies
    1. I am not going to drink that Kool-Aid, my guess is the Feds will not either. I want to see this blocked.

      Delete
    2. The merger in one picture. Verizon and AT&T MHz spectrum maps look pathetic in comparison. Hint: You need 100 MHz to make a 5G channel work effectively.

      https://www.fiercewireless.com/5g/it-s-official-t-mobile-and-sprint-announce-plans-to-merge?mkt_tok=eyJpIjoiWW1NeE9UTmxOemswT0RJeSIsInQiOiIxUHd0ODZiNERweHJ3NEhYeEJBc1ZpMmhwaVEzUzVQbGdYN3RDSGNjVU5FYml5Q0JkYmpaXC9QNmRcL005RmtLN1czaktrbVwvUFprR1NmYk92QVRsNGJTQnk5WUwxUytZUk85bkxtcytwT3JVVmIrZVhFRzh5eXNsVTNZMnlWRzY0RSJ9&mrkid=6195616

      Delete
    3. Anon April 30th @ 1052 made a good point.

      Is this true about needing 100 MHz to make 5G work effectively?
      Where can we find maps comparing Verizon & ATT's 100 MHz maps to the proposed Tmo/Sprint merger map?

      Delete
    4. Yes, it's true.
      You can see spectrum maps for all the carriers on FierceWireless.

      Delete
    5. http://wireless2020.com/media/articles/2017-Spectrum-Strategies-for-5G-12262017.pdf
      This is just one of several whitepapers and reports I found in a quick search that recommend 100 MHz spectrum for effective and efficient 5G channels. See pages 3 and 4, which also discuss carrier strategies and spectrum shortfalls. For example, T-Mobile has an average of 31 MHz low-band spectrum, but needs about 70 MHz for wide-coverage, low capacity 5G use (e.g., IoT).
      Samsung and Qualcomm also recommend 100 MHz spectrum for fast mobile 5G channels. AT&T recommends 200 MHz/channel.

      Delete
    6. Thank you Anon 835 & 941. You are very helpful. Thanks for holding my hand for a bit. Very good reading. Thanks again!

      Delete
  25. Play this video to see their sales pitch

    https://www.youtube.com/watch?time_continue=420&v=1nsbmtwMrgY

    ReplyDelete
  26. "Get your head up and look around.... Most customers don't buy wireless anymore. They buy combinations of wireless and video. ..."

    blah blah blah

    bundle bundle bundle

    blah blah blah

    what a bunch of hogwash. this bundled services nonsense is vertical marketing to keep you within one company. goes against the á-la-carte cut-the-cord mentality that consumers have. just give me only my cable internet from my only cox cable internet in my area, but let me separtely get my at&t prepaid for my main phone, my other dirt cheap tmo mvno & sprint mvno plans on my other family phones, and my OTT "tv" app services of hulu, hbo, cbs, amazon prime. that integrated bundle crap whether bundled channels or bundled services has always been a big money suck. yeah great for convenience if you only want to deal with and pay into only one company. but that's one big behemoth to lock all your services into where you are stuck with only what they offer.

    ReplyDelete
    Replies
    1. I think most people would bite if they could get a 5G phone/broadband-TV-video bundle that cost significantly less than their cobbled services.
      Everyone has their price, as the cable boys have found.

      Disclosure: I bundle TV+Broadband, and buy mobile and Vonage separately, for easy cable portability. Every two years I switch to a bargain cable bundle from a competitor.
      I can't save anything with broadband+streaming TV+video service.
      I would gladly pick a single 5G bundle if I could save 10% and avoid all the games.
      I think 5G and industry partnerships and mergers will make this possible. But the cable companies will fight back and compete.

      Delete
  27. Sprint and Tmobile leadership teams are in DC this week. They have already talked to Pai and other FCC commissioners, and are walking Capital Hill to explain their agreement and its benefits.

    Massive MIMO on both Tmo and Sprint towers will happen very fast, using equipment that can be upgraded to run both LTE and 5G from the same box.

    https://www.fiercewireless.com/wireless/massive-mimo-to-play-role-t-mobile-sprint-5g-combination?mkt_tok=eyJpIjoiWW1NeE9UTmxOemswT0RJeSIsInQiOiIxUHd0ODZiNERweHJ3NEhYeEJBc1ZpMmhwaVEzUzVQbGdYN3RDSGNjVU5FYml5Q0JkYmpaXC9QNmRcL005RmtLN1czaktrbVwvUFprR1NmYk92QVRsNGJTQnk5WUwxUytZUk85bkxtcytwT3JVVmIrZVhFRzh5eXNsVTNZMnlWRzY0RSJ9&mrkid=6195616

    ReplyDelete
    Replies
    1. The Massive MIMO radios Sprint and T-Mobile are deploying can be upgraded to provide 5G with just a software upgrade. Nobody needs to climb a tower to run 5G along with LTE from the same equipment.

      Delete
    2. Dennis can you do anything about this URL? It's killing the page render.

      Delete
    3. The theme should handle long urls better than it does. I look at fixing it when I have the time.

      If it's your comment repost it without all the tracking garbage in the URL (everything after the question mark).

      Delete
  28. The date on the update seems odd :)

    ReplyDelete
  29. AT&T and Verizon Wireless will always offer much better coverage in the rural network areas. T-Mobile and Sprint will be a great merger for data network model mainly in the "road more traveled" areas.

    ReplyDelete
    Replies
    1. Maybe the CEOs are both lying in their new video when they say they will definitely build out rural areas faster under the merger. But look at these three facts, not just cynical hunches:
      1. Tmo owns 600 MHz spectrum across the whole country now. They built 2500 new stores last year, mostly in new markets opened up by fielding 700 and 600 spectrum. They say they will build a couple of thousand more this year as 600 is deployed to new areas.
      2. Sprint has petitioned the FCC to expand education band of 2.5 GHz spectrum to rural county boarders, and allow the schools to let carriers use excess spectrum they are not using now. Much is just sitting there, not used at all. Sprint wants to use that to fill in coverage holes in rural areas. FCC agrees, and is studying how to do this.
      3. The combo of Tmo's avg 30 MHz of 600 across the whole USA and Sprint's massive amounts of 2.5 GHz in more than 160 major markets and the edu plans give the combined company what it needs to field very fast mobile 5G nationwide. They will do this because they can field quicker than Verizon or AT&T plan to do, and steal millions of their customers. Verizon and AT&T have nowhere near the spectrum they need for an effective 5G mobile network. It will take them years to buy enough spectrum, or they will have to do the unthinkable and agree to share a 5G mobile network. That won't happen.

      Delete
    2. Can rural sites even backhaul 5G NR? I did not see them address this on their website. I consider myself lucky to get 5 Mbps of LTE. No wired options exist. Is the "New T-Mobile" going to install fiber to my cell tower? Unless they start running fiber where ATT has not, I think the only thing many rural customers will get from this merger is higher prices.

      Delete
    3. 5G makes much better use of spectrum. Carriers will also rent capacity on cable systems and deploy their millimeter wave spectrum for backhaul. Sprint will designate some of its 2.5GHz spectrum for backhaul.

      Delete
  30. People T-mo is doing fine without Sprint. There is multiple options besides this that are better. And T-mo acquiring Sprint's 32 billion in debt on top of their own is not what's best for us. Keep that in mind for people that are getting fool into thinking this is good. Also, keep in mind that Boost Virgin and Sprint Prepaid plans are going to fade off thus meaning those companies would compete with current metro pcs which help competition we will no longer have those.

    So yeah the New T-mo probably will be cheaper than Verizon and ATT but won't be anywhere as near cheap as now. And remember 1 2 years after merger when Uncarrier becomes more Carrier there won't be no more Boost Virgin Sprint Prepaid on the lower end to drive back competition. Y'all really think ATT Prepaid and their Cricket will strive hard on the low end to keep prices down? Nah and watch Verizon Prepaid go back to being less competitive again and their MVNO's. Other options could be T-mo plus Dish perfect match less combined debt. And Sprint plus Comcast or New Charter. Just keep this in mind people less companies and a lot of combined T-mo Sprint debt. So, in conclusion Tweet trump he likes to tweet, tweet DOJ tweet FCC tweet white house tweet file arguments with congress senate. We need to let them know early this is not what we want or need.

    ReplyDelete
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