Analysts Say AT&T Will Have To Divest Part Of T-Mobile, Possibly To Sprint

The T-Mobile AT&T news just keeps on kicking with analysts from Citadel Securities proposing that not only would AT&T have to make major concessions for FCC and DOJ approval, that Sprint could wind up a major winner as part of any deal passage.

Citadel Security analysts are suggesting that AT&T executives are downplaying the scale that will be required in order to receive government approval.

“AT&T has said it expects to have to make some concessions to get regulatory approval, but its initial working assumption is that no divestitures will be required,” states the report. “We think this is likely an exaggeration, and that AT&T may, in fact, be ready to make very significant divestitures.”

AT&T’s Stock Purchase agreement filed on March 21st shows that the carrier is ready to divest up to 40 percent of T-Mobile’s subscriber base. It was suggested that AT&T may be prepared to divest even more than the suggested 40% in order to see this deal through.

“[T]he eventual outcome of this deal could be that AT&T does successfully acquire T-Mobile, but is required to divest perhaps up to half of T-Mobile’s subscribers,” stated the report. “We would view this outcome as positive for Sprint, which we believe would be a likely bidder for the divested operations. Although not as favorable as a straight Sprint/T-Mobile merger (at a fair valuation), Sprint’s ability to acquire some portions of T-Mobile would help it achieve better scale.”

Unfortunately, T-Mobile and it’s subscriber base will be the victims in all of this. Danish Research firm Strand Consult said in a report earlier today that T-Mobile USA was a victim of poor management from parent company Deutsche Telekom who “didn’t apply lessons they’d learned elsewhere to their American undertaking.”

Many of the problems T-Mobile was struggling with “could have been eliminated if they had just been a little better at identifying and utilizing the experience and information”—such as from carriers KPN and Telfort in Holland and E-Plus in Germany—”that they already had access to within their own international corporation,” the report said.

Going a step further, Strand Consult said in the report:

Deutsche Telekom’s American T-Mobile venture, the report concluded, “has been scrapped; those that ought to be held responsible for this sad turn of events will not be accused of anything, and the shareholders will once again realize that they have invested in a company that despite all their experience and knowledge could not perform.”

In the end, the FCC and the Department of Justice will determine just how much of T-Mobile AT&T will actually acquire and how much will be passed out to the competition.

eWeek

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  • http://twitter.com/luke911 Jeromy L

    So where can i sign up to be part of the customer base going to sprint? :)

    • http://ashn.myopenid.com/ Ash

      Uhhhmmm, just sign up with sprint?

      • MordyT

        I just left them for horrible data speeds… T-Mo gets 26 MBPS in the same area..

  • BAS1

    Exactly, how would it be decided which customers are “divested” and who goes to AT&T? This is a mess.

    • iLama

      If they’re looking for volunteers, I’ll get in line.

    • http://twitter.com/PaulHarrisonPro Paul Harrison

      This is actually worse than if we all are forced to switch to AT&T given Sprint doesn’t have a network that’s compatible on any level. Forget “All your 3G and 4G phones will go EDGE only”, it’s going to be “Your phones aren’t going to work any more.”

      Indeed, even Verizon might make more sense. Verizon has lots of spectrum and is in the process of switching to the 4G version of GSM, LTE. Given they’re going LTE anyway, it might even make sense for them to do a limited roll-out of 2G GSM to support their “new” customers.

      This is a horrible idea, and Citadel Securities are horrible people for even bringing it up.

      My counter proposal? T-Mobile merges with AT&T, but AT&T is then broken up. I suggest they split their mobile operation into two competitors, one could carry the AT&T name, and the other could, I don’t know, keep the “T” from AT&T, and maybe add the word “Mobile” to reflect its role as a mobile operator. “T-Mobile”, has a kinda ring to it…

      • J1

        I hope the deal goes thru and then as At&T is rejoicing the SEC and DOJ come back with concessions. One of which is for At&T to split into two companies, of which they can longer acquire or merge with. That will teach ‘em!!!

    • Dmcclure68

      I’m guessing people who are flexpay and Even More Plus customers would go to Sprint. I believe a employee on Hofo fourms said 30% of tmo customers are flexpay , not sure about even more plus. AT&T would want to keep the contract customers.

  • T-MoAndroidExpert

    This roller coaster is getting really old. First they let the employees just find out that they were selling the company. Then they provide no information about us employees keeping our jobs other than a brief sentence in the press release. Now half of our customer base might just go to Sprint? And there is still no information about what is going to happen to all of our employees. It’s just getting to be way too much of a circus…..

    • Chris

      There is no information because there is no merger yet. The government has not approve yet. Do I need to say more?

      • T-MoAndroidExpert

        I would hope that if your going to be playing with the careers and jobs of ~30,000 people, you would at least be able to come with some hard facts and plans BEFORE you announce the merger….Just food for thought….

  • Anonymous

    SA&A has gone way too far.
    Do they want 7 billion customers from the entire Earth?!

  • Anonymous

    Wow, I feel like a child in a divorce settlement! Thanks for conjuring up old memories, T-Mobile.

  • Carl

    So I guess there is a 60% chance that I as a customer may end up on the sucky ATT network, and there is a 40% chance that I’ll end up on the sucky WiMax network. GREAT! Which is better of the two evils?

  • SayWhat??

    T-Mobile is like that one smokin’ hot chick that everybody wants dibs on lol

    • http://twitter.com/stevensteve steven

      Or the filthy whore that everyone has slept with.

      • omog

        too true…..lol

  • Trapper

    Ew. Sprint is even worse than AT&T. We’ll be gone, gone, gone.

  • heybobitsme

    So how exactly is that going to work? Are AT&T just going to send letters telling people “ok your going to Sprint. Buh bye!” And also, how is Sprint going to handle that if it comes to fruition? It’s not as easy as a credit card company taking over your account and giving you a new card. There’s expensive hardware involved. For instance, I have a G2. Would they just give me an EVO Shift? BAS1 is right; this is a mess!

    • Thereugo67

      Exactly said I have A G2 well four of them how does that work for a family plan.

    • Jonathan

      That is exactly what I was thinking as well. How WOULD they divide up the customers (IF AT&T had to give some of T-Mobile’s customers to another wireless operator?) That would be an even BIGGER mess.

    • Anonymous

      I think Sprint would purchase airtime wholesale on AT&T at first. As subscribers dwindled and AT&T was ready to take T-Mobile’s 3G AWS network offline and bring it up as a LTE network, AT&T would probably make it worth Sprint’s while to provide low cost smartphones and similar terms under a Sprint network and contract.

  • Anonymous

    This is sad news. I am sticking around to hear what happens through summer, but unfortunately T-mobile only offers GPRS where I am staying 9 months out of the year so I might be leaving them. Then again I really love them, but this whole selling/splitting stuff is really a mess.

  • http://pulse.yahoo.com/_RKOFXGTD7JPYHD4RM4DIPRFBDM J

    Did Sprint not just say that they oppose the merger?

    • http://twitter.com/munale ed lanum

      they are opposed unless they get a piece of the action

      • For It

        15 Million subs will shut sprint up.

        • Maginot

          How do they control subscribers…in the end, we are free to walk.

        • Deff

          thats where you are wrong. in the end, we still have to fulfill our contract obligations.

        • Lastmilefire

          When tmobile bought out suncom. All suncom customers were legally allowed to switch service within 45 days of the actual transistion…. so basically the day our stores started greeting with welcome to tmobile instead of suncom……… you could have left, Again it was a legal obligation to give them teh freedom…. however alot of suncom customers never got the letter telling them about that lol

        • Bambam

          Wasn’t suncom part of AT&T one time or another? I can’t remember

        • Lastmilefire

          they swapped territories…. they were still seperate though

        • Anonymous

          If you are off contract, you can walk. If you are on-contract, Sprint could buy your contract and assuming they don’t change any terms, you are obligated to complete the term of the contract.

          Sprint would probably purchase airtime wholesale from AT&T to provide service to their former T-Mobile customers. AT&T could offer Sprint incentives to get smartphone customers in particular off T-Mobile’s 3G AWS network that they want to convert to LTE. Sprint might facilitate this by offering T-Mobile subscribers a comparable smartphone on their network for free along with almost identical or better contractual terms.

    • Dewey Cox

      yeah…before the talk of possibly getting a chunk of T-Mo’s customers.

  • SprinT-MoGuy

    It’s so sad when a company you grow up with gets bought out. No matter how many problems you had with them I mean 1,000′s of people will loose there jobs it’s a sad day I don’t have tmo anymore I have Sprint but I love this blog and the Tmo community.

  • BAS1

    Last year I switched over to one of the “no contract” plans. I love T-Mo as well but when all of this shakes out I have a feeling I am pulling the ripcord entirely.

  • Veteran

    I was part of the Verizon/Alltel purchase and divesting will be inevitable if the two purchases are anything alike, especially where ATT has alot of subscribers and stores. At least that seemed the pattern that was taken with the Verizon/Alltel purchase. In the south we surely sweated that fact and Verizon closed the smaller stores in my area (8 of them). The FCC and DOJ won’t let ATT flood the market in a given area.

    • http://twitter.com/munale ed lanum

      so how did it work on the customer end? were customers asked there preference or just assigned to a ner carrier?

      • Veteran

        First it took a long time for the divested stores to be bought and re-branded to the company who bought them (believe it or not most in were bought by ATT) Customers who lived in the divested area went to whatever company bought the divested stores until their contracts ran out. Thats where it stinks. You don’t get the option to terminate you still have to fullfill your contractual obligations.

  • lattelady

    Well you know they sometimes break up siblings in foster care!!!

    This just keeps sounding worse each day.

    • Claudine Gandolfi

      I want to know if we can contact Deutsche Telekom and get them to reconsider this move? It’s HORRIBLE for current TMo subscribers. I’ve been with TMo since it was Voicestream! I had AT&T before that and don’t want to go back. I had Nextel for a few months in the middle and couldn’t stand them so I can’t see liking Sprint/Nextel. They’re leaving me no choice but to move to Verizon and that’s not fair! I say we all petition DT and the FCC/DOJ.

      • Jonathan

        Why? It’s obvious that Deutsche Telekom doesn’t want to stay in the US market. I hope the DOJ and the FCC DOESN’T block the AT&T/T-Mobile USA merger because if they do, then Deutsche Telekom will have to reluctantly hold onto T-Mobile USA until they find another way to get rid of it. Then in the meantime they’ll probably put as little money into T-Mobile USA (less than they already do.)

      • Dewey Cox

        They do not care about you or any of us.

  • angeldevilboy

    I just think it was bad management on Deutsche part as soon as they saw no growth and cash , they sold out to get out of the US market. Personally I would much rather be a part of AT&T than Sprint. I hate Sprints coverage, customer care, there lame attempt at 4G and overall pricing. At least with at&t I can stay on a better built technology GSM over CDMA speeds, that t-mobile built out. In the end T-Mobile USA will RIP. (Rest. In. Pieces)

    • Anonymous

      After coming from Houston Cellular and leaving when they got brought under the Cingular banner, and then going to AT&T Wireless and leaving when Cingular bought them and rebadged themselves, and then coming to T-Mobile, I feel exactly the opposite. I wish Sprint had bought T-Mobile, or perhaps in a perfect world Google. Admittedly I prefer GSM for several reasons. But that isn’t enough for me to be willing to be a long term customer of AT&T. I’ll probably land on Sprint or Virgin in the not distant future.

  • veteran

    DT Saw no growth and cash because they didn’t sink any into the US. I believe the US DT was used as a tax write off,, now they need to get rid of it and ATT is willing to pay more than it should to get it and be back at the TOP DOG status in the wireless world. Its all about the almighty dollar in the end…to all parties concerned.

    • Jonathan

      Unfortunately, I agree with you veteran. I think from one angle, this is a good thing (the divestiture of T-Mobile.) Not an immediate good thing but hopefully over time we will look back and we’ll be glad that it happened.

    • Anonymous

      I think it has little to do with AT&T megalomania, though I really dislike the company. What it comes down to is they got caught with their pants down not having enough spectrum to roll out a national LTE network. Purchasing T-Mobile and recommissioning their 3G AWS network as LTE will immediately fix that problem. Everything else is gravy. I seriously doubt they will be willing to price their service competitively enough to keep very many T-Mobile customers after their contract is up.

  • BigMixxx

    NO, the statement is “the precedence is divestiture, but the do we as consumers lose the spirit of competition?” Orange and O2, while not in America set the standard.

    AGAIN, With the same DAMN face, sprint is salivating at the opportunity to pick up some of the subscribers. they may have started this to get T mobile subscribers really thinking. Being a part of a major merger was a huge learning for me as when my company took over other areas in which we dominated, we had to give up “stuff” during large acquisitions to continue to keep up the spirit of competition.

    Again, the term per the Department of Justice and in this case the FCC is spirit of competition. there is no SEC involved, so that hurdle is already gone. (T mobile is not a publicly traded company, so 33% of all of the hurdles in America is just not there.) It’s not GSM technology vs. CDMA it’s the fact that us consumers have choices, albeit very limited ones. ( thusly killing the Department of justice and a portion of the FCC) For example, Altel had penetration in markets that Verizon did not. Very good acquisition. They did not give up much of the subscriber base.

    Like it or not (I swear I don’t), where ever there is AT&T there is T mobile and in 90 to 95% of the cases, there is competition from Sprint, Verizon and the likes. Remember, Verizon with the altel acquisition did not receive a lot of flak. The government will push this thing through, no matter how you look at it.

    Please don’t be alarmed by the acquisition as consumers. If we leave, guaranteed our phone bills will go up significantly. I really hate it for the employee’s of T mobile at the same time the ATT ones in the stores are in DEEP trouble.

    NET NEUTRALITY ISSUE MUST BE ADDRESSED! Don’t fall for the smoke and mirrors. Let me use the Internet the way I want!

  • Jayla

    What is this a joke? I have an even more plus plan and i will NEVER GO ON SPRINTS NETWORK. There is no way that they would be allowed to just pick and chose WHICH network i can go on. ITS MY CHOICE. Id choose att over sprint. This is a big damn joke

    • Anonymous

      It is your choice if you are off-contract. But if you have a signed contract with T-Mobile, and Sprint or AT&T is willing to buy your contract out and commit to not changing the terms otherwise, then you have no choice in who purchases your contract. If they inadvertently change terms, you can then declare the contract void.

  • Levin49

    Please sign my petition to help stop the AT&T/ T-Mobile merger. Please help!!! http://www.change.org/petitions/stop-the-att-t-mobile-merger#?opt_new=f&opt_fb=t

  • Anonymous

    My money is that AT&T is prepared to give up some AWS spectrum and $3 billion cash plus cheap LTE roaming because that’s a little more then what they will give up if the merger doesn’t go through.

    This isn’t two foreign companies trying to take control over a nations cell system (Orange and T-Mobile UK) where the competition had similar networks.

    This is AT&T (apple pie, baseball and AT&T and not in that order) which has Congressmen and Senators in their pockets. After divestiture SouthWest Bell swallowed Pactel, Ameritech, Bell South, Cingular and finally what was left of AT&T. Have they ever been turned down or forced to divest some huge part of those networks?

    Anyone ever read a history of Ma Bell? When they first started there was competition all over with multiple lines run on the poles for each competitor. AT&T had goon squads that torched competitors central offices and beat their employees with clubs. They still play hardball just with lobbyists now.

    The end result will be a minimal divestiture of bandwidth and cash because Sprint doesn’t want to run an AWS network or watch customers switch as their contracts come up. I also don’t see Sprint giving customers new EVO 4G phones on the chance that they may stay.

    • Anonymous

      I don’t see them willing to give up almost any AWS spectrum. I believe that is the single most valuable thing to them and the reason they were willing to pay $39 B, to convert this spectrum from 3G to LTE. I believe they’d be willing to divest some EDGE spectrum where they already have good density or significant overlap with T-Mobile, along with providing LTE wholesaling and LTE roaming if that will be technically feasible.

      I can see Sprint becoming a MVNO for any divested T-Mobile customers they might pick up, along with hoping they can move those customers to their network by providing them free or very low cost handset upgrades and substantially the same contract terms if they convert their contract from magenta to yellow.

      • Anonymous

        Well if the merger is denied they agreed to give up some AWS spectrum, $3 billion cash and favorable roaming to T-Mobile.

        So they are willing to give up some spectrum just to get the chance at this. That clause was apparently the kicker that made the deal work for T-Mobile. AT&T may have already had talks with the FCC over what they need to do to make this work. The AWS that AT&T holds has some big gaps in it so it wouldn’t be of much use to Sprint but for the regional carriers yes. I don’t think they would give up a national piece of AWS.

        There is also no guarantee that Sprint gets the leftovers from this – should it happen. Metro, Leap and some others may want in on some good deals also never mind Verizon or as I have seen conjectured maybe a new regional carrier comes out of this.

  • Lundgren_holly

    i would like to be one of the TMobile customers that ATT “divests”. Where do I sign up?! Please, please pick me! I will not give even one penny of my money to ATT, who is by far the worst company I have ever dealt with for any reason.

  • http://pulse.yahoo.com/_6BZWRJOKVCUIZWHMEWABAUBLHQ gfam

    AT&T will be forced to make concessions with T-Mobile’s 30+ million customer base, what they will be I have no clue but there will be some significant ones made. Why you ask? Well, it’s simple, T-Mobile is measurably cheaper than AT&T and there is no way AT&T can prove that this buyout is better for customers as far as the price they will will be forced to pay with AT&T’s current rates. As far as the actual network, with what AT&T has got planned, they won’t give up much, watch.

  • Joey

    I may not be a fan of AT&T, but why should they be “forced,” to divest their customers? That’s one thing I don’t understand.

    Sprint has had their fair chance (for years and years) to compete. Poor management decisions have led to their demise not a lack of competition.

    I for one do NOT want to be a Sprint customer.

    Besides Sprint can’t afford to purchase any divested customers. I bet you Verizon would outbid Sprint for any divested customers.

    • Anonymous

      It doesn’t have anything to do with Sprint other than the fact US regulators may not allow AT&T to complete the purchase without ensuring their isn’t an obscene concentration of customers with the top carriers. Right now, if AT&T got all of T-Mobile, AT&T would barely eclipse Verizon as the largest US carrier, and between the 2 of them, they would account for 75% of all US mobile customers.

      US regulators would have little interest in AT&T selling anything to Verizon. They’d want it to go to another party. The only other national network operator, and the only one with significant resources to acquire customers is Sprint.

  • MSalam11

    What does it mean divest customers?

    • Anonymous

      divest – 2nd meaning – to sell off or otherwise dispose of.

      They’re saying AT&T may not be allowed to keep all of T-Mobile’s customers or frequencies. They may be required to sell some of those customers or frequencies to another party. Given the landscape of mobile telephone networks, the only operator that makes some sense to do this with is Sprint.

      • ghostnik

        so basically they are treating tmobile customers and network as cattle (no one on this site doesn’t see that as a problem), its like we are a commodity on the stock market, but the thing I don’t get is how the hell would the FCC approving this deal b/c they force at&t to sell some of us, make it any fairer? Shouldn’t the tmobile customers if anything have a voice in this deal since in the end, it will be us that feel the pain of this deal. In fact I think the FCC should have a representative for tmobile customers or have all of the tmobile customers who can make it to the hearing when they are deciding this deal to be there and give reasons why they deal should not go through, better yet the FCC should have the tmobile customers vote all 39 billion of them wether this deal should occur, since it really only involves the customers and tmobile network b/c we are the prize. At least let the tmobile customers have a say in if they can be sold like cattle, which is crazy when you think of it, how can you sell people (tmobile customers) and say that will make a deal fair. What is this slavery all over again?

        • http://www.facebook.com/colin.gebhart Colin Gebhart

          I hate that T-Mobile is being sold because I love them as a customer. But their management made plenty of serious strategic mistakes. Capitalism isn’t a democracy. And customer’s don’t have any reason to get a say in this further than the fact they are a citizen of the US and may petition their government to not approve a regulated industry transaction.

          T-Mobile surely has in their contracts a clause granting them the right to sell our contracts to another carrier. Any other carrier that purchases this contract must abide by T-Mobile’s original term, or you as the counterparty are free to declare the contract null and void.

          The only reason selling some T-Mobile customers to Sprint makes it “fairer” is because without doing this, between AT&T/T-Mobile and Verizon, 2 companies would have 75% of the US cellphone customers. Deconcentrating this would give mpre competitive pressure against those 2.

        • ghostnik

          You say customers don’t have a say, but i think they do b/c if all of tmobile customers where to leave today, then I don’t think AT&t would still want to buy tmobile b/c they would have just lost all there potential profit from this proposed acquisition. I mean yeah they would still have tmobile network, but what is a network with no customers paying to use that network, as all of tmobile customers would not be there to use the network, so AT&t wouldn’t be making any money off of that network.

        • Guest

          Actually that would make AT&T very happy and more motivated because they only want the company for the spectrum, not for us. They only want our network so they can make their shitty network better.
          And douche telekom did do a horrible job managing this company because our company wouldn’t be in this position if it had been managed better and had a better marketing team paired with a better phone selection like it has been in Europe.

          Someone else explain to everyone now why all of a sudden our company is getting three good phones in the coming months (G2X, HTC Pyramid, and Sidekick 4G)? Why all of a sudden the go-getter attitude it’s been lacking for at least two years?

        • Guest

          I’m not saying it’s because of AT&T. I’m anti-AT&T.

        • omog

          if you feel like a commodity it’s because YOU ARE.

      • Brian

        AT&T doesn’t want to keep customers that are paying much less than standard AT&T customers. They sell us off to one of the little vendors: Boost mobile, Virgin, MetroPCS, and maybe some to sprint.
        It means you get a whole lot less customer service and less coverage.

  • http://twitter.com/jdevenberg jdevenberg

    oh man I hope I don’t get divested. Or if I do I hope Verizon or someone else outbids Sprint. The only company I want less than I want AT&T is Sprint.

  • Anonymous

    lol not really, this makes no sense – beyond that – Deutsche Telekom is in charge of the agreement of this acquisition, if it came down to it – they’d pull back from this deal. It would make no sense whatsoever to have Customer Care handling AT&T, T-Mobile, and Sprint customers – it’s not even feasible.

    Retarded Analysts.

    • Anonymous

      T-Mobile is no longer in the driver’s seat. Their directors have agreed to the transaction. Anything they do to submarine the deal could be seen as a setup to invoke AT&T’s commitment to pay them $3b and preferential roaming if the deal fails for any reason. Their customer care would not be covering customer’s from 3 different networks. As of close, most of the T-Mobile customers would get their customer service from AT&T’s new subsidiary T-Mobile until they could bring the customer service all under their flag. Any subscribers that were divested to Sprint would quickly have their customer service provided by Sprint, who would probably wholesale minutes from AT&T and operate those former T-Mobile customers as a MVNO.

      • Aarontant

        Colinnwn – even though T-Mobile may not be in the driver’s seat, parent company, DT, looks to be able to call the shots, overall. http://news.cnet.com/8301-1035_3-20045184-94.html An 8% stockholder share could very well comprise a majority stakeholder share. Interesting twist of fate down the road for us T-Mobile customers (and T-Mobile employees…)

        • http://www.facebook.com/colin.gebhart Colin Gebhart

          I see no evidence in that story that DT is able to call the shots. DT directors approved the deal with the breakup conditions. I don’t believe DT shareholders will get to vote on this. I haven’t seen it quoted AT&T shareholders would either. But I think you are alluding to the fact that AT&T shareholders might get to vote on it because of the considerable dilution of their shares. Either way I don’t see how DT or T-Mobile are either in the driver’s seat going forward. Now DOJ/FCC and AT&T have the power.

  • http://twitter.com/mcasao ManwellC

    No way I would go to Sprint. It’s Verizon or AT&T once/if T-Mobile goes the way of the Dodo.

  • Derrickps3

    i’m like a child lost at the mall………..i want my mommy :(…..lol

  • Chris_4life87

    i REFUSE to go to sprint. There is no way on god’s green earth I will sign with them. WARNING sprint will s**t you out your money. Trust me I use to work for them!

    • noeallstar3

      T-Mobile is already doing that to me 103, 1000 mins, grandfathered android plan

  • http://ashn.myopenid.com/ Ash

    Ha, I told you yesterday in another post, this might be good for sprint…lol

  • Carmen Diva

    What exactly is MVNO? I read it down below in some posts

    • http://twitter.com/mlococo Michael Lococo

      “A mobile virtual network operator (MVNO) is a company that provides mobile phone service but does not have its own licensed frequency allocation”

      http://en.wikipedia.org/wiki/MVNO

    • Anonymous

      read–> http://www.mobilein.com/what_is_a_mvno.htm , You will understanding what MVNO means.

      Hope this help..

    • MM

      Mobile Virtual Network Operator. Virgin Mobile, Boost, etc are MVNO’s. They handle billing, sales, customer service, but they use someone else’s network as a wholesaler.

    • http://twitter.com/LTEstyles LTEstyles

      Remember Helio? yea, that was an MVNO

  • Jeff

    I think it is scary that the Federal Government has the authority to decide winners and losers. This is supposed to be America. Hard work and success are supposed to pay off. When companies fail they should fail, and whoever can afford to buy them should be able to buy them. The American business owner’s hands are tied down by so many regulations our Founding Fathers would be disgusted.

    A free market system should determine what wireless companies succeed, fail, merge, disband.

    • nero

      I dunno. I think that history showed us (spending millions to lobby, aka graft, politicians to influence legislation is a prime example which pervades almost all industries) that big business only cares about the bottom line and not a robust, competitive free-market system that you, I and the founding pops covet so much. To that end, I think it’s responsible to have a sort of checks and balances entity (the government) to act in the better interest of its constituents so we don’t get fucked in the name of profit.

      ‘Cause in the end, let’s be honest, the big wigs up top will still make off with huge pay days; the “big bad, boogie-man government” isn’t stopping that.

      • Jeff

        I understand your point Nero, but like I said before, I choose freedom and liberty over tyranny (cheap wireless plans mandated by the government through anti-trust laws which are used to take private property and “divest” it in the name of fairness). Who’s to say that big bad boogie-man government won’t decide you make too much money and mandate you sell parts of your growing business in the name of fairness?

    • Aaron514

      You stupid tea bagger. Are you familiar with the term “monopoly”? How about “price gouging” or “insider trading”? I can go on and on. Can you really not understand why government regulation is good and necessary for YOU, the simpleton citizen?

      • Blacksheep427

        You sound like a Democrat, you talk just like one and like AT&T as well. Name calling the constituents won’t work ALGORE. :P

        PS: I am anti-monopoly in the sense of unfair and anti-consumer tactics, but otherwise, business is just that, a business.

        • Jeff

          Wow this turned into a fun post.

          I think you summed it up Blacksheep. Business is business. Businesses don’t exist to give their workers healthcare, vacation, sick days, or cheap wireless plans. They exist to make a profit.

          And why is profit such a dirty word!? Where would be without a capitalist system and the oh-so-evil profit margin? Afghanistan? In the dark ages?

          I will choose freedom and the free market (not the rigged market, or the crony capitalist market) over cheap wireless plans any day. If you don’t like the plans, go start your own wireless company and stop begrudging successful people.

    • craigers

      What an idiot. People like you are the reason this country is in so much economic trouble. Keep your idiotic political ideas out of our blog.

  • http://twitter.com/mlococo Michael Lococo

    The problem here with any “divestiture” is Sprint and Verizon are not compatible with either towers or customer equipment (at least to my, admittedly, limited understanding.) AT&T and T-Mobile are GSM and the others are CDMA… What use would GSM towers and / or equipment be to either CDMA carrier? That is why I think this thing makes absolutely NO sense. There will no longer be any competition in the market and regional carriers will not be able to take up the slack. This I feel will put a target on Sprint so that Verizon will be forced to leap frog AT&T by acquiring them… Then you will have only 2 choices… Maybe Sprint sees this as well…

    • Anonymous

      AT&T picked up Alltel customers in the Verizon deal and they don’t have compatible technologies. If i understand correctly. AT&T had to send alltel customers out free phones.

      My guess is sprint would do the same thing.

  • Jonny

    HA!!! SO MUCH FOR “TMONEWS.COM”! Time to think of a new name for this crappy site. LOL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    • http://tmonews.com David

      Crappy site? I take offense to that.

      • anon

        Don’t take offense to that, he is just a troll.

      • http://twitter.com/LTEstyles LTEstyles

        Never take that as an offense, this is the best site for tmobile on this planet! I get very excited to see your tweets than tmobile themselves! Jonny is just upset because he still probably has the SHARP TM150 phone..lol

    • TMoChris

      then why are you on here… Idiot lol

      • http://profiles.google.com/piawpos Canesha C.

        Exactly, why go to a site you don’t like and take the time to make a comment? Weirdo.

    • Rayen321

      I like this site, maybe you are just a crappy human being.

  • Anonymous

    I’d say this is a bit more fair analysis of the condition of T-mobile USA. DT mismanaged the company and we’re the one’s to pay the price. T-mobile USA customers are likely to get screwed in the long run if we’re not sold as DT is incapable of running the company properly. Think higher prices, etc so that they stop losing money every year.

    That leaves T-mobile usa being sold to AT&T or Sprint. We all know what happened to Nextel when Sprint took over (they’re bleeding Nextel customers in droves).

    It’s all about making the best of a terrible situation for T-mobile USA customers. At least there’s some chance of being treated ok with AT&T after the merger.

  • BigMixxx

    That is foolishness. if this were 2003, ok…but it’s 2011…AGAIN, having been part of several large mergers, I have NEVER seen the Gov’t step in and say ‘you have to give up part of your consumer base to a competitor’ vs. sell it. I have seen where licenses have been given up to derail the spirit of dominance in markets. Check the coverage maps. Not much will be given up. Time has played against everyone in the cellular market today.
    That’s where this merger has the upper hand. In Verizon’s Alltel acquisition, they had to give up licenses in areas where they dominated, 105 of em, in remote areas like ‘lake of the woods, MN’. AT&T would have the option to Sell part of it’s offering in particular markets, for example, Elko Nevada, population unknown, but ATT bought Alltel up there. ‘othersideofthestate, TX’ is another area. However, the playing field has changed tremendously and those circumstances are far an away almost gone. As networks have matured, so has far reaching voice AND DATA coverage.

    These analysts continue to look at the consumer base of T mobile. Very valuable and loyal. “In the spirit of competition” Phone offerings, and service is available with Sprint and Verizon and other smaller companies. Look at the bigger picture. SPECTRUM. AT&T will have a lot, and lots in reserve. They have AWS spectrum and a lot more with T mobile (it doubles) They have PCS bands, now a lot more and hold some valuable 700mhz spectrum. With John W. Stanton elected as chariman of Clearwire, and they are desperate for money and AT&T has a lot of it…to “badly quote” the article I read ’8 to 10 billion is hard to ignore for some spectrum’. ATT is spectrum rich and the Gov’t really won’t be able to do anything about it as they sold it to them. so there is some spectrum they can give up and not miss a beat….

    I firmly believe what they won’t give up is that 21 billion in revenue. 21 billion dollars a year. Acquisition, in shear revenue, will almost pay for itself in 2. In profit, if things remain the same, in 5…

    And a potential reduction in operating expenses, but most of all a very good position in the Net Neutrality debate. PLEASE DON’t MISS THAT! Imagine that’s the potential of another 34 million ATT DSL subscribers, Uverse subscribers. Additonal iPhone customers, android footprint increases, etc. they may pwn us good…

  • Punisher2all

    Why didn’t DT merge its Tmo-USA with Sprint ( I know I know, they’re different technologies) and make a Everything Everywhere USA sorta thing, much like it did when it was struggling in the UK and it merged with Orange. That way we still have T-mobile in some way.

  • http://cosmicbreeze.tumblr.com/ DtheArtist

    Just wake me up when FCC disapproves this deal.

  • Wjholm1

    Interesting looks like I’m going to sprint one way or another

  • Naterapan

    I use to work foe ATT wireless and they have never had the best interest in mind for their clients. Sadly I thought T-mobile was a good company. I am out of contract and wiil sit this way till the deal goes thru or not. However I live in a market whete 4g lte is avail by verizon and I have currently been looking into that.

  • Anthony Cross

    i was a T-Mobile customer from 2007- early 2011…i am now with AT&T i believe this is a good idea overall…i didn’t hear people speaking up so much when Sprint combined with Nextel…I had a problem with Sprint doing that and i made a small small impact…i had 35 friends and family leave Nextel in the same day…once the merger happened…small pennies but Sprint should keep quite period point blank…they wanted T-Mobile themselves…that would be the biggest bomb/failure just like with Nextel

  • Dog

    Stop streaming videos on a BLOG. It completely slows down the entire page, constantly transferring data.

  • Anonymous

    As of today im on sprint. Its been real Tmo ill miss you had you for ten years but it was time to move on. just picked up my EVO, What a sweet phone. Just to share with others, $109 gets you unlimited text, web at 4G speeds ” speedtest.net test comes in at just over 1 Megabyte, that’s RR premium speeds.” also wifi hotspot/ tethering and 400 min of calls to landlines and free to any carriers mobile phone plus free nights and weekends. This is in NYC.

    • http://www.facebook.com/people/Bassam-El-azzeh/1057698400 Bassam El-azzeh

      Wow thats garbage! 75 dollars gets me 6.5 megabytes down on speedtest with unlimited anything.On T-mobile.

    • bossz

      thats horrible tmobile gets more speed and i live in the bronx and go to school in manhattan

  • Ari

    Switched back to AT&T iPhone 4 … couldn’t be happier see majority of you guys on big blue in 12 months =]

  • bossz

    been wit tmobile for 9 years and if this deal go threw and my service sucks im switching to verizon …i think its funny at&t has to buy another company to beat verizon but ill bet you in the end verizon will end up having more customers again because of this

  • craigers

    I won’t sit back and be a victim of anything. I’ll be leaving as soon as iPhone 5 is released. As sad as it is to say, T-Mobile is dead, whether AT&T buys it or not.

  • Guest

    as the great one said

    Bend over rover and let jimmy take over

  • i420BBerryBum

    I am definitely leaving T-Mobile if AT&T AND/OR Sh*tty Sprint acquires it. I dont care if they are not the “best” carrier, I like T-Mobile the way it is. If anything, T-Mobile USA should buy its independence from half-witted German numbnuts DT and keep doing what they’ve been doing. I knew something was awry when Dotson and Nokes disappeared. As soon as they brought in Phillip “The Feuhrer” Humm, I know DT aka the 3RD REICH was up to something. Either way, if T-mobile is acquired, I am taking all 10 lines to Verizon or maybe even US Cellular. At least they arent sellouts.

  • i420BBerryBum

    at&t is just awful. and Sprint shouldve sold out a decade ago but NOBODY wants to buy their outdated joke of a network. DAN HESSE: you’re a b*tch