Sprint CEO Dan Hesse Thinks A Merger With T-Mobile Makes Sense, In Other News, The Sky Is Blue

Well I suppose this is hardly going to come as any surprise that Sprint CEO Dan Hesse has said that a merger with T-Mobile makes sense. Shock and surprise right? I think with the recent “article” (if one can call it that) of T-Mobile’s demise next years we can all admit that the carrier needs to do something. Competing against Verizon and AT&T for any carrier especially T-Mobile and Sprint is becoming increasingly difficult in light of their tremendous quarterly gains. A merger would place them right back into the game with a combined customer placing them squarely into third place, but by an amount significantly smaller than where both carriers are now. Of course, Rene Obermann, Deutsche Telekom’s CEO stated that no multi-billion dollars would come to fruition this year, but 2011 isn’t that far off.

Let’s be completely honest and say that while the concept of the combined carriers is great in terms of subscriber count, the different technologies and other incompatibilities would mean some serious long-term considerations in order to successfully merge the companies. We can only hope that if such a merger were to come to pass, that it would look something completely unlike a Sprint and Nextel debacle and that Deutsche Telekom would lead the way.

Intomobile Via Financial Times

Tags: , ,

  • Barry

    ahem in more interesting news.

    Galaxy S Root Method Works On U.S. Variants http://androidspin.com/2010/07/13/galaxy-s-root-method-works-on-u-s-variants/ :-)

  • SHAWN

    SORRY FOR THE SHOUT… BUT PLEASE NOOOOOOOOOOOOO.

    I ONLY DEAL WITH THE SPOTY T-MOBILE COVERAGE BECAUSE OF THEIR EXCELLENT CUSTOMER SERVICE. I’VE HAD SPRINT, THEY ARE HORRIBLE AND RUDE.

    I PRAY THIS DOESN’T HAPPEN, DON’T RUIN T-MOBILE WITH SPRINTS HORRIBLE CUSTOMER SERVICE, AND RUDE REPS.

    AHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH NO

    • Bruce

      stupid! seriously, is customer service that important to you? the only time i ever call them is to scam them into sending me a new phone. i prefer better coverage, faster data, and better quality phones, over “good customer service”

      • Frank

        That is because you are a D bag!!!!

    • http://tmonews dcb

      Not sure where you live Shawn but I really dont think T-Mobile’s service is “spotty” as you put it…Just because you may have been somewhere where a person on another carrier had service and you didnt doesn’t mean that it is spotty…T-Mobile works in areas where others dont as well.

    • mike meyer

      i heard that shawn

  • Stephen

    The author of this article obviously didn’t read the article…
    Mr. Hesse only said there was a logic to exploring a merger with T-Mobile in the event that they both move to LTE for their nex-gen networks… And he wasn’t even sure Sprint would be moving to LTE anyway, just that he is open to the idea and only down the road…
    I recently switched from T-Mobile to Sprint(for the EVO 4G) and I couldn’t be happier..
    There have been numerous studies showing Sprint has improved their customer service…
    Also to the person that stated that Sprint doesn’t own their network anymore…That is false…Sprint just outsourced the maintenance and network operations of the network..retaining control over it…
    Deceptive writing is not a good way to run a blog..

    • http://tmonews dcb

      Sprint owns their standard CDMA network….the new 4G was put in place by clearwire so they do not “own” that portion of their network….and it amazes me what sheep people are to advertising…..T-Mobiles HSPA+ is faster than “4G”….Just because term “4G” has been thrown around for a while doesnt make is the best…it is certainly catchier that HSPA+ but thats about it.

      • imthatguy704

        you need to recheck your sources. Last time I checked Sprint own 57% of WiMax 4G services and Clearwire, Time Warner, etc… own the rest. To me 57% percent sounds like majority owner.

      • http://tmonews dcb

        Well I don’t have a “source” but my statement is accurate….Sprint owns a 56% stake in clearwire but they do not own clearwire….Google “does Sprint own clearwire” and there is a post from June 29th that talks about whether or not they will tender an offer to buy the company…..owning a majority of shares does not mean you own the company or the technology they develop!

      • mike meyer

        haha you could never be more right!

  • what if

    If this will ever happen i hoping sprint would adopt tmobile technology. just the fact gsm has more potential of developing. Tmobile got that 21 mhgz and still in 3g and now they have 43 mhgz that’s crazy its even faster then sprint and verizon 3g and 4g..

    • Vinchenzo

      its 21Mbps and 42Mbps by the end of 2011. HSPA+ at 21Mbps kills Sprint’s 4G (10Mbps Max) and is around 3-4x the speed of either AT&T or Verizon. In other words, we don’t need to get to 42Mbps to murder the other carriers.

      • what if

        it doesnt hurt tp have a back up where verizon and att talk junk about their speed tmobile got 42 mbps..42 mbps is faster then carrier tmobile supposely coming out with a phone where it can use that 21 mbps in September cant wait until that comes out… so 42 mbps wouldnt hurt

  • En2Mente

    I think the only reason sprint is still around is because they lucked out and bought nextel.

  • thisiscrap

    If Tmobile merges with Sprint i am gonna cancel all my lines and switch. i love Tmobile and i have been with them for almost 8 years…. if they merge then i am out… spring might be the worst wireless service next to US Cellular. just get better phones….. people want good phones for cheap. Tmobile in the UK seem to have it going on. they give alway all the best phones for free as long as you sign a contract and just raise the cancelation fee…..

  • JonnyB

    T-Mobile is 4th place for a reason! They suck balls just like the person who wrote this article. Just admit it! My friend has T-Mobile and he never gets 3G! Ever! While I do and I have Sprint!:D Just face it, T-Mobile has horrible 3G Coverage! Its just funny that people say, oh our 3G is faster then Sprints 4G, Sprint will have more 4G markets then T-Mobile has 3G markets by years end! Now thats FUNNY!!

    • Frank

      One: I have gotten faster browsing speeds on TMo edge than friends who have the other three carriers 3G

      two: wtf are you even commenting/reading a pro tmo forum if you are anti (anti= D bag)

  • timdawg919

    I left Nextel after Sprint took over because of lousy customer service. I would rather tmob merge with AT&T as they have similar technology (gsm). I like the fact that I can switch phones whenever I like just by changing my SIM

  • ctk

    i think it sorta matters whom is acquiring whom.

    if t-mo is acquiring sprint (which would be the most probable) the likely scenario is that sprint users would probably get new phones because i don’t see the cdma network staying active under t-mo’s control. i see portions being sold off to smaller regional carriers and those who don’t want to move over to the merged company would be able to be released from their contracts and move over to verizon or the smaller carriers. as long as lte is the standard both would be running on what this does is open up the future phone market for t-mobile users. people here are bitching about t-mo’s crap phone lineup, well if this merger goes through sprint’s lte phones now come into play. i don’t see sprint’s customer service being retained except for the better ones. i do see a much more aggressive provider going after customers and technology.

    if sprint is acquiring t-mo usa (they don’t have the cash to get d-t) i see them getting a great customer service division and gaining customer share to get into a much closer customer numbers to at&t and would possibly take over number 2 depending on what they do.

    just because the sprint ceo is talking merger doesn’t mean that his company would be doing the takeover. i hear t-mo usa is actually valuable to d-t as it makes money. what better investment into t-mo usa than add in the carrier directly in front of you. it would be the best move for both companies should they choose to do so. just because something is popular (more customers) doesn’t mean its better.

  • TMOprophet

    guys i watched wpc 2010 today and oh my god you have to check out windows phone 7. im a android user and i hate to say it but i cant wait to switch to it. in the conference they show you how your xbox, computer, internet, phone are all conected. its sweet. you take a pic on your phone and you can view it on your xbox,cpu,internet automatically.

    • TMOprophet

      You really need to change your name, are that pathetic that you take someone elses screen name, whatever maybe I will change mine, then you can copy that one too.

      FYI, WinMO sucks

  • En2Mente

    If a merger was to happen id be ok with it, but only if they stay on gsm and keep the low plan prices.

  • Edgar

    I hope this happens, that way we can get the 3G signal here in Puerto Rico since Sprint does have one an Tmobile doesn’t.

  • TMOprophet

    I will laugh if this happens, all the lil Vibrator fanboys with trash sprint and the evo will eat their words..lol

    Whole things fine with me, more networking ability, better phone lineup, with combined resources we could see even better phones and services

  • ace

    Who wrote this article? Ever heard of proofreading something before you post it? Horrible. You must be extremely bored.

  • J

    If this was to happen, I don’t think there is any question on whom is buying whom. T-Mobile is a profitable company. Sprint is not. T-Mobile made over $300 million last quarter while Sprint lost over $800 million. Sprint needs to be gutted to stay alive. They bit off more than they could chew with the Nextel merger. I’m not sure when the last time Sprint even recorded a positive earnings in a quarter.

  • http://tmonews.com Cheech

    I just switched over to sprint after being with T-Mo for 9 years. I heard the horror stories about their customer care. But in all honesty guys, if this goes Lte, not such a bad thing. And as far as the service and call quality goes… Out here in Tucson, AZ Spint always gives me a strong 3G signal as opposed to Every single phone I tried with T-Mo ( Hd2, Blackberry bold, mytouch…etc) Could never hang on to a 3G signal. Got tired of the fact that everytime I entered a building my $500 Blackberry would say evdo and not 3G!
    IMO, Sprint would aquire T-mobile. If you look closesly at the coverage maps, Sprint has better, stronger coverage and also has more customers. Kind of a no brainer. Sorry to all of you who are super loyal, But my $69.99 unlimited plan on my palm pre ( wich webos surfs the web better than your computer )with great service just makes me a happy customer, oh and with my 10% discount it’s only $63 before taxes. Sprints not all bad and this could be great either way!

    • J

      Sprint can’t afford to acquire anyone. They are bleeding money. Sprint is more likely to be bought than to buy anyone. You can’t lose 100s of millions of dollars each quarter and buy your way out. Sprint needs to sell off the Nextel network and cut operational costs. Otherwise, they won’t survive.

  • Steve

    I became a Tmobile customer after they bought Voicestream. I became a Voicestream customer when they bought out by GTE. So I have been around since the begining. I have never been a sprint customer, but I was a Nextel customer for along time, due to the PTT for my business. I would not mind seeing a merger between the 2. Tmobile would get the best PTT out there and sprint might get better Cuctomer service. The combined companies might also get better reception. How you say? Do what tracfone does. Which ever system works the best in a particular area is the 1 sold in that area. So use both CDMA and GSM. When Voicestream bought GTE Wireless, I had to sign a new contract and received a new phone that worked on their system. Eventually which ever system worked the best, would dictate which technology (CDMA or GSM) would be the ideal choice. And Nokia already makes PTT phones. The 5140 is one. I am sure there are others. The 5140 is a GSM phone, which I have used on Tmobile in the past. Just no PTT service. So some positive things coulkd come from a merger. Both companies need to be more aggressive in their marketing.

    • J

      T-Mobile would likely dump the PTT if they acquired Sprint. I’ve heard the reason T-Mobile has not bought Sprint is that they want Sprint to dump the Nextel portion of their business. T-Mobile could have had a PTT solution on their GSM network if they wanted it. They simply do not have an interest in it.

      If T-Mobile was to buy Sprint, the CDMA would eventually be removed. The reason is T-mobile is an international carrier and CDMA isn’t used enough worldwide. The cost of running multiple networks is great. That is why Sprint is not making money even though they have a larger customer base than T-Mobile.

  • http://tmonews.com Cheech

    To correct myself from my last statement, I meant edge, not evdo. Sorry!

  • Steve

    Sure dump the iden phone, keep the ptt. It did have great potential when it was nextel only. You have to have used it for a period of time to really appreciate it. Especially if your trying to contact numerous people at once. Tmobile has ptt in Europe. Look at Metro PCS. Their ptt can contact anyone on any service and the person
    being contacted doesn’t even need a ptt phone. Now Metro PCS’s ptt is not nationwide yet, but certainly an interesting concept developed by Kodiak. I am not comparing Metro PCS’s service with Tmobile’s. It’s just the innovation.

  • tl

    the article did not say tmo was closing its doors, it basically said the t-mobile brand would go way. That just means the name, and hopefully the terrible business strategy, would change. Hence why the CEO is leaving.

  • Bill

    It may come as a surprise for some folks, but Verizon Wireless does have GSM service in the form of companies it’s gobbled up. The biggest issue between Sprint and T-Mobile is the fact that Sprint is CDMA and T-Mobile is GSM; it too may be it’s biggest asset. Where T-Mobile has no coverage and no roaming agreement, under Sprint coverage can be ascertained. The fun begins with hardware…what device…are they compatible with both networks…yada…yada…Both companies do it right, especially DT leading the way…might work…I have no idea if its in both their interests to convert either completely over to CDMA or GSM given what T-Mobile has invested in regards to HSDPA+.

  • cdd

    I had Sprint along side ATT. No Thanks!!! Sprints customer service was Cr@p as was there coverage.

    How about Google? They seem to want to wet their beak in the cell phone industry and they want coverage for the world. They have Voice up and running and I think are cooking up something with GIZMO. Would that all not dove tail nicely with a cell phone holding.. I’m thinking G-Mobile!!! Could this happen?

  • Don’t Go TMo!

    If Tmobile and Sprint merge I will leave tmobile and take my family with me! I have dealt with Sprint I vowed to NEVER EVER return! I hated everything about Sprint which is why I left in the first place to go to TMobile. I can tell over the past few months that something was brewing because the service is beginning to fall off with TMobile, a bit and that concerned me. I don’t want to jump on the AT&T bandwagon but if this merger happens I’M OUT!

  • http://offermobiles.com http://flashgameboys.com

    Really nice post with lot of info hidden, I will bookmark this for my reference thanks.

  • Sprint Executives

    You should link in your article to http://www.contact-the-ceo.com/sprint-nextel.html for the words Sprint CEO Dan Hesse so more people will get his contact information. By putting it in your article, you will give it some good link juice, thus helping EVERYONE ;=).