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Sprint, T-Mobile ink $26.5 Billion Deal to Take On AT&T

Discussion in 'BBS Hangout' started by Sajan, Apr 29, 2018.

  1. Sajan

    Sajan Member

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    https://www.bloomberg.com/news/arti...-in-26-5-billion-deal-to-take-on-at-t-verizon
    • Legere is CEO of combined company, with Masayoshi Son on board
    • Deutsche Telekom to end up with 42% stake, SoftBank with 27%
    Operating as T-Mobile, the company would have about $74 billion in annual revenue and 70 million wireless subscribers. Verizon is the largest U.S. carrier with $88 billion in 2017 wireless revenue and 111 million subscribers, and AT&T would be No. 2 with $71 billion in wireless revenue and have 78 million regular subscribers.

    T-Mobile’s Mike Sievert will be president and chief operating officer. The German company’s chairman, Tim Hoettges, will serve in that role at the combined company, and the board will include SoftBank Chief Executive Officer Masayoshi Son. The companies said they expect synergies of about $43 billion based on net present value, with more than $6.5 billion on a run-rate basis.
     
  2. Two Sandwiches

    Two Sandwiches Contributing Member

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    Hopefully Sprint doesn't suck the life out of T-Mobile because T-Mobile has been on a hot streak lately. Sprint is downright awful.
     
  3. RedRedemption

    RedRedemption Contributing Member

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    What does Sprint have that T-Mobile would want?
     
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  4. Sajan

    Sajan Member

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    Spectrum. And customers.
     
    TMac'n and OmegaSupreme like this.
  5. KingCheetah

    KingCheetah Contributing Member

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    I guess it's time to say goodbye to my old Sprint unlimited plan i've been grandfathered into for the past decade.
     
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  6. KingCheetah

    KingCheetah Contributing Member

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    Supposedly they have a strong 5G backbone in place (their 4G sucked but whatever).

    Edit:
    The two carriers have complementary wireless spectrum that may be a strategic advantage as the companies build a faster fifth generation or 5G network. T-Mobile controls a large portfolio of lower-band airwaves that can travel long distances and pass through walls and windows. Sprint has the largest U.S. holding of higher-band, 2.5 gigahertz spectrum that can handle more data capacity but over limited distances.

    https://www.bloomberg.com/news/arti...-in-26-5-billion-deal-to-take-on-at-t-verizon
     
    #6 KingCheetah, Apr 29, 2018
    Last edited: Apr 29, 2018
    Uprising likes this.
  7. Space Ghost

    Space Ghost Contributing Member

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    This is a merger that has been talked about for a decade. Sprint/Softbank is giving up. Over twenty years of running this company into the ground has finally taken its toll. This merger only helps ATT and Verizon.
     
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  8. A_3PO

    A_3PO Member

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    I completely agree with everything here. This is a gift to the "Twin Towers of Evil" ;) (Verizon and AT&T) and definitely does not benefit consumers.

    The consolation prize is Softbank finally surrendered to sanity and allowed T-Mobile to be in charge of the combined company.
     
    Sajan likes this.
  9. KingCheetah

    KingCheetah Contributing Member

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    I really don't understand how Sprint has even stayed in business over the past decade the company is just bleeding money, but I guess when you are one of just four providers you are provided with unique opportunities. Since they got rid of wi-max about 7 or so years ago the LTE service has been excellent in metro areas -- rural coverage is still poor.
     
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  10. Sajan

    Sajan Member

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    Sprint should have been dead years ago. They botched the Nextel acquisition. Then rolled out WiMAX when everyone did LTE...
    Shitty customer service..
     
  11. moestavern19

    moestavern19 Member

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    Spectrum and customers sure, but this is also about T-Mobile using Sprint's Qualcomm connections for 5G.

    T-Mobile is really betting it all on trying to get to 5G supremacy.
     
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  12. TMac'n

    TMac'n Contributing Member

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    This makes sense. Really hoping this works out for T-Mobile. Been a customer with them since 2005, and have nothing but good things to say (expect bad reception early on and no IPhone initially).

    Had Sprint from 1999 - 2001, never again! So really hope this works out
     
    A_3PO likes this.
  13. Uprising

    Uprising Contributing Member

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    Yep I've been in the same family plan since 2008

    Granted today's deals might actually be a little cheaper. . Unlimited everything ~$50 a line (including all fees and taxes)
     
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  14. Space Ghost

    Space Ghost Contributing Member

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    Usually I do not support the consolidation of networks like this. However ATT and especially Verizon have gotten a stranglehold on the industry. For me, I would never do Sprint. Tmobile is fine in suburban areas. And I hate ATT's customer service. I find Verizon a bit pricey, but I'll happily pay an extra 15 bucks a month for a superior network and great customer service.

    Both Sprint and Tmobile are beating each other up for the bargain customer. Neither can afford to expend their network to rival ATT and Verizon. However with the merger, they can reduce costly churn and raise their prices a bit to the point where they are now forced to expand their coverage in rural areas. We need a third option to force Verizon and ATT to lower their prices.

    I haven't followed the spectrum holdings for each company in years. However if Sprint and Tmobile doesn't hold significant licenses in the 700-900Mhz bands, they will continue to struggle. One of the biggest reasons ATT and Verizon are on top is because they hold the vast majority of the 850Mhz spectrum. Its a good balance of wireless penetration and data throughput....which is why it was set aside for cellular use decades ago.
     
  15. CCity Zero

    CCity Zero Member

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    I just switched from AT&T to T-Mobile.. So far it's been great, cheaper and better service in my house. On AT&T I had to use a microcell in my house, and I live just outside of Austin. It was only in my house though, in the driveway it was great (on at&t haha), but with both on corporate discount t-mobile was significantly cheaper. I'd been with AT&T forever too.

    It was getting old paying nearly $100 more for about the same service, hopefully this Sprint deal doesn't screw things up.
     
  16. Felixthecat

    Felixthecat Contributing Member

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    This applies to me except I was with Sprint a little longer. I signed up with Tmobile in 2012 and never looked back. Love their service.
     
  17. Air Langhi

    Air Langhi Contributing Member

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    Sprint is carrying 35 billion in debt. Until recently Tmobile wasn't doing so well. Just trying to service that debt will hamper Tmobile.
     
  18. geeimsobored

    geeimsobored Contributing Member

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    True but wireless carriers are also always chasing a finite resource in radio spectrum. And Sprint has the optimal spectrum portfolio for 5G. They own nationwide 2500 mhz licenses which is perfect for a dense high speed network. They own 100+ mhz of spectrum in that area across the US. That stuff is only going to appreciate in value. TMobile now has a strong low frequency portfolio thanks to the 600 mhz auction so absorbing debt in exchange for customers and a key set of spectrum is probably worth it. The FCC will probably auction some more 2500 mhz that isn't being used today but no carrier will gain the quantities that Sprint has.
     
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  19. Scionxa

    Scionxa Contributing Member

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    I predict that AT&T and new T-Mobile dethrone VZ and become 1 and 2. Verizon will be the #3 carrier in America unless they acquire some low-band and midband spectrum for 5G. They're putting all their eggs in the "DSS" basket and that technology isn't ready. The amount of spectrum AT&T and "new Tmobile" have is going to make it hard for VZ.
     

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