Analysts See AT&T/T-Mobile Network Sharing If Deal Isn’t Approved

We await the outcome of this afternoon court hearing and AT&T’s efforts to do all it can to get an early hearing date to salvage it’s proposed T-Mobile acquisition. However, if the deal falls through, collapses or is outright rejected a Reuters suggest analysts expect that both AT&T and T-Mobile will try and strike a network-sharing arrangement which would work around the regulatory heat that surrounds this deal and give each company access to additional spectrum capacity.

“They’ve done a lot of work with AT&T figuring out the network synergies. They’d be able to achieve a significant amount of that without a merger,” said Roe Equity Research analyst Kevin Roe about Deutsche Telekom and T-Mobile USA.

A source close to the case told Reuters that there has been no movement toward a settlement and that the likely outcome is a completely restructured deal to satisfy regulators and anti-trust officials.

At the time AT&T and T-Mobile struck their deal, Deutsche Telekom was currently in talks with five separate parties looking to bid for T-Mobile. Any win by the government would likely prohibit Verizon and Sprint from also approaching AT&T with a counter-offer as that deal would likely face the same additional regulatory pressure.

Deutsche Telekom would still have the option of spinning off their U.S. business as a separate and publicly traded company but analysts doesn’t see this as a viable option. A T-Mobile USA spin off would require huge operating improvements and few analysts envision Deutsche Telekom pouring billions of dollars into T-Mobile to turn around the business. Deutsche Telekom would be free to look at network agreements with alternative companies as well and was rumored to be in talks with Clearwire at the time of the AT&T announcement. However, Clearwire is likely to ask for an investment in the network in exchange for spectrum sharing that would leave AT&T as the least expensive network partner. Given that Deutsche Telekom has continued interest in working to get the AT&T deal done as is. The break-up fee that DT would earn from AT&T would provide it some short-term options but it wouldn’t resolve any long term issues with T-Mobile USA.

Reuters

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  • http://twitter.com/SParKlngCyaNide SparklingCyanide

    soooo many variables, who knows how this will turn out really.

    • Deceptivesmiles

      Tell me about it. Its like it could go either way. I would rather a sharing agreement where it could strengthen service for all consumers w/o tmo being acquired.

      • http://twitter.com/SParKlngCyaNide SparklingCyanide

        I would love a spectrum sharing agreement, would be beneficial for both companies plus T-Mobile would stay T-Mobile.

    • Anonymous

      What of T-Mobile that needs to “turn around the business”? … Seems to be doing just fine past all the negative PR.

  • http://www.facebook.com/people/James-Matthews/100000189923615 James Matthews

    Any deal that would allow me to use my phone on the subways the way AT&T customers currently do is fine with me.

  • Chatter

    nice modification of the pic!

  • Derrick227

    network sharing? with at&t?? LOL……hell nawl

    • music meek

      when you roam on Tmobile, where do you think you’re getting coverage?

      • Jcj1

        There are many possibillities other then ATT. There are aloot of ssmall companies, I wireless for example. ATT is one of them that is the largest

      • http://profiles.google.com/brooklynboiz Jamille Browne

        Who on earth uses roaming unless you travel? I don’t. 

  • 30014

    It would be better than a complete takeover.

  • fonBuzzzz

    Well, this won’t be the first time these two companies have done something like this. They did it for years in California and NY under the “GSM Facilities” partnership.

  • Anonymous

    I think I like the idea of spectrum sharing better.  It would be nice to get better rural coverage when I go out of town.

    I’m just leery as to what spectrum sharing would entail.  Making a deal with AT&T feels like making a deal with the devil.

  • Rob Reder

    Why didn’t they just work this deal out in the first place? If spectrum is what they’re after, both companies can gain from a sharing deal while staying competitive not only with each other, but with the CDMA companies as well.

    • IT Guy

      In a nutshell, because DT wants to rid themselves of T-Mobile.

      • TheWayOfThings

        And ATT wants to rid of themselves of another competitor…

  • Rob Reder

    Why didn’t they just work this deal out in the first place? If spectrum is what they’re after, both companies can gain from a sharing deal while staying competitive not only with each other, but with the CDMA companies as well.

  • Youngt82

    For some reason I am going to stand and believe this merger wont go through and T-Mobile will stay with DT for a while :) so No deal No merger!!!!!! Lol

    • http://twitter.com/Mrt1connect Mrt1connect

      hey thats a nice little chant right there….. no deal, no merger….

  • Youngt82

    For some reason I am going to stand and believe this merger wont go through and T-Mobile will stay with DT for a while :) so No deal No merger!!!!!! Lol

  • http://twitter.com/Mrt1connect Mrt1connect

    Im seeing too many att logos…..

  • JBLMOBILEG1

    I like the idea of sharing networks and still being separate companies. It would benefit both companies by sharing towers while at the same time having to compete with each other for customers with who has the better deals. Plus in order to share networks cell phone makers would need to release phones with both carrier bands in the future. While some phones could be exclusive for a time being it doesn’t block a customer from the other carrier from being able to buy the phone outright and use it to the full potential on their network. Awesome idea!!! Let’s do this!!! Not only would this make the market competitive but also allow more choices for the customer… maybe even lowering cost of phone manufacturing because they would be massed produced for both carriers minus the branding.

  • TheTRUTH

    AT&T provides much more rural coverage than T-Mobile.  I know it’s hard to believe if you never leave you city much but on a national scale they do.  AT&T also operates its cellular network which may help with indoor reception in certain places where our T-Mobile phones go to SOS especially inside large or dense buildings.

    However these things aren’t free.  T-Mobile’s network would get beefed up but our prices would also likely go up as well.  

    You can’t have it both ways.  More coverage but keep T-Mobile’s pricing isn’t a winning formula for T-Mobile USA or DT.  At some point we’ll have to concede to a better network that costs a bit more. 

  • Bill2673

    When you do a network search on my phone it looks for AT&T and TMobile. During the big power outage in San Diego County, had lots of AT&T signal, no TMobile for about 5 hours. Cannot hook to AT&T anymore.

  • Anonymous

    I rather have a Network sharing agreement, than have AT&T’s name appearing on the “from” section on my bill.

    T-Mobile could allow them to use a % of AWS spectrum, for their so called needed LTE network, in exchange for LTE access, and 850/1900MHz roaming coverage in places where T-Mobile has little to no coverage.

    • Tbyrne

      That would be a smart move!

  • BigMixxx

    Hmm…Analyst are changing their minds about this acquisition?  DOJ flat out saying, ‘hell to the naw’ on why?  AT&T not being aggressive in this takeover? Republicans pushing Obama to make a decision on this?  Spectrum sharing deal possibly ahead? 

    I don’t know how to read it, but it sounds like some plan has been laid out. It may result in  It’s now up to DT to spin off T mobile U.S.A. so it can raise capital.  There seems to be some temperature in the market for a T mobile spinoff.  If metro PCS has a market cap of 3 billion and Sprint with a market cap of 10 billion, there has to be some temperature for it…

    • Auser72

      Oh you see through that Analyst/Company P.R. bullshit too……lol. Complete 180 from a couple days ago. U.S. Spinoff and shared spectrum is the best scenario for everyone. Unless At&t real goal was to eliminate competition.

      • BigMixxx

        yup…Hell, Analysts have not clue.  Bad track records…same folks that said apple is going to release iPhone on all carriers ‘this year’

      • BigMixxx

        yup…Hell, Analysts have not clue.  Bad track records…same folks that said apple is going to release iPhone on all carriers ‘this year’

    • Brianb

      T-mobile could do what it did in the UK and create a spin-off with a different name “02″ cell company.  It is a partnership of Orange mobile of France and DT (Tmobile of Europe) that created “02″ mobile in the UK.

      • BigMixxx

        I could see something like that happening, but AT&T is too big….

      • Frustrated

        Actually, the Orange T-Mobile(UK) thing is called Everything Everywhere.  O2 is owned by Telefonica of Spain, but was the mobile phone unit of British Telecom, in a partnership with Securicor, this was called BT Cellnet.  in 2005, Telefonica purchased BT Mobile’s operation for £18Billion, which is roughly $28.8Billion. 

    • Brianb

      T-mobile could do what it did in the UK and create a spin-off with a different name “02″ cell company.  It is a partnership of Orange mobile of France and DT (Tmobile of Europe) that created “02″ mobile in the UK.

  • Anonymous

    Now we are talking business.Network & tower sharing with unlocked GSM phones. I could support this being a T mobile customer.

    It would mean only Quad band phones would work!!!

    DT wants or has gotten out of most international Markets and just be a USE(urope) company…. Pity them!!!!

    • Harrykl

      They already have roaming agreements.  Voice and Edge are completely compatible NOW.  That is why AT&T wanted T-mobile.  If you travel out in the middle of nowhere sometimes you are on AT&T and sometimes you are on T-mobile. 

      They would just increase roaming agreements.  The cause if it doesn’t go through already says AT&T has to give complete roaming agreements TO T-mobile if it fails to go through.  Thus Tmobile has a stronger network if the deal fails.

    • Harrykl

      They already have roaming agreements.  Voice and Edge are completely compatible NOW.  That is why AT&T wanted T-mobile.  If you travel out in the middle of nowhere sometimes you are on AT&T and sometimes you are on T-mobile. 

      They would just increase roaming agreements.  The cause if it doesn’t go through already says AT&T has to give complete roaming agreements TO T-mobile if it fails to go through.  Thus Tmobile has a stronger network if the deal fails.

  • Anonymous

    Now we are talking business.Network & tower sharing with unlocked GSM phones. I could support this being a T mobile customer.

    It would mean only Quad band phones would work!!!

    DT wants or has gotten out of most international Markets and just be a USE(urope) company…. Pity them!!!!

  • Daddym469

    News Flash!!!! Saturday is about building more contracts!!! Also, everyone needs to firmly understand that most if not all of these so called deals and changes are being led by AT and T.What part of 39 billion dollars do  you not understand? The owners of T mobile don’t want T mobile. What we are seeing in any format has ATT written all over it, and I really wished I would have stayed off contract. The value plan was designed to keep all the current non contract customers offering a pricing structure almost to good to refuse, and like so many I got back on contract to save some money. At this point we all should be asking ourselves….AT WHAT COST??? T mobile will suck as long as this deal stays undone and will probably suck “Even More”….beyond that!Like
    Reply

    • Carolbyr

      Anti-trust laws have NOTHING to do with what is best profit for either company.  It is what is best for the markets.  DT is a much larger company than AT&T.  They can pump a large amount of cash into the operation (which they probably won’t ) or sell to telefonica or Orange mobile (thus leaving 4 companies in the USA). 

      And how does Tmobile ‘suck’ for you?  I had Cingular and it wasn’t any better 7 years ago.
      AT&T will only raise cost and create a duopoly in the Telecom market in the United States.
      80% in the hands of the two most expensive cell companies??? 

      Have you seen an unlimited Iphone plan at AT&T?  $100 just for unlimited voice and text–add $50 more for data.  That is a CRAZY expensive unlimited plan.

      • Daddym469

        You missed it…..AAL OF THE ABRUPT CHANGES SUCK! NEVER HAS TMOBILE DID THIS MUCH CHANGING IN A MATTER OF A FEW MONTHS….BUT UNLIKE YOU AND THE OTHERS HERE….YOU DON’T SEE THAT….I HAVE ZERO ISSUE WITH THE PRICING…IT’S HOW THEY DID IT! READ….VALUE IS CHEAP AS HELL TO BE ON A DECENT CONTRACT NETWORK, BUT THEY KILLED ABOUT 4 TO 5 PROGRAMS TO DO IT, AND THE BIGGEST TRICK IN ALL OF THIS WAS TO GIVE YOU THESE LOW PRICES ON CONTRACT ONLY…..READ AND COMPREHEND.

        • the_truth

          Caps? Really?

        • Tbyrne

          We see what’s going on. We’re tired of trolls coming in here and trying to pull these smoke and mirror games to dishearten the true T-Mobile people. Question is, why are you still here? Go get your silver coins Judas! Seriously, if it’s true you feel that T-Mobile’s trying to pull a scam, either work around it by going what works for you or get out!

    • Carolbyr

      Anti-trust laws have NOTHING to do with what is best profit for either company.  It is what is best for the markets.  DT is a much larger company than AT&T.  They can pump a large amount of cash into the operation (which they probably won’t ) or sell to telefonica or Orange mobile (thus leaving 4 companies in the USA). 

      And how does Tmobile ‘suck’ for you?  I had Cingular and it wasn’t any better 7 years ago.
      AT&T will only raise cost and create a duopoly in the Telecom market in the United States.
      80% in the hands of the two most expensive cell companies??? 

      Have you seen an unlimited Iphone plan at AT&T?  $100 just for unlimited voice and text–add $50 more for data.  That is a CRAZY expensive unlimited plan.

    • Tbyrne

      If you believe T-Mobile sucks then go to Ivan or Dan Hesse and leave true T-Mobile customers alone!

  • Brianb

    Well according to the ATT agreement they have to give tmobile full contracts for roaming…it doesn’t really need to be worked out.

    • David Haas

      Roaming and network sharing are not the same, especially for customers and other end users.

      Network sharing basically means that at&t’s network would be considered a part of T-Mobile’s home network, with full use of all frequencies and backhaul (this would also be the case with at&t’s use of T-Mobile’s network).  On the billing end, a network sharing deal would mean that any T-Mobile or at&t customer could use T-Mobile’s AND/OR at&t’s network constantly without fear of losing service due to excessive off-network roaming.  (Hence why it’s not considered roaming).  Sprint, Clearwire, Time Warner and Cox have a similar agreement w.r.t. the Sprint network and their own nets.  Iowa wireless has a similar deal with T-mobile so to speak (even though they are for most purposes considered an MVNO).

      Roaming basically means that T-Mobile customers would be allowed to use the at&t network, but it would cost to do so on T-Mobile’s dime, and would fall under excessive off-network use policies currently in place.

      I’d rather have the first option.

  • BP

    Out of all the options being presented for T-Mobile, this network sharing is the least believable.  DT has stated they want out of the US.  This means DT has tried every alternative but its not working the way that they envisioned.  DT will not spend additional money without a guarantee they will win at this point.  The trial date today will give us all more insight of the future of T-Mobile. 

    • Tbyrne

      You’re not a mind reader. You & I don’t know what they’re working on. If you’re a T-Mobile fan, you’ll hope for the best!

      • BP

        No I am an article reader.  DT has stated many times that they want out of the US.  Foreign companies don’t bluff when they want out of the US.  Only US companies bluff.  This deal with Clearwire was on the table before and DT didn’t take it.  This has been a long and tough decision for DT but they feel its their best move with AT&T.

        • Anonymous

          So if it falls through, T-Mobile will likely just be shut down?

        • BP

          The trial date today will give some insight on the deal.  AT&T wants the trial date of January 16 and the DOJ wants March 19.  The 39 billion dollar transaction with AT&T and T-Mobile is scheduled to close by March 20.  The date the judge sides with has a better chance of winning.  Tmonews will have the article later on.

        • IT Guy

          I think that would be a last resort. DT wants to find a buyer that’s willing and able to take over T-Mobile as a whole, but if a buyer doesn’t step forward we could see them selling off their assets to smaller carriers.

        • David Haas

          That was my thinking.  Fire sale on AWS spectrum, first come first serve!

          I’m starting to see the merger as the last possible effort to keep a *whole* (or even a big chunk) of T-Mobile USA alive.

        • Ted

          I would just not read too much into anything BP says

        • Ted

          I would just not read too much into anything BP says

    • Ted

      Actually I agree that you are not a mind reader and you have no clue what the future holds

      • BP

        Reporters write articles to give you an insight of a company and its future.  Whether you take time to read it is up to you.

  • //BIQ

    NEWSFLASH: Netflix to acquire TMO USA and rename it to Qwikstream
    …what a mess…
    :-)

    • jajjji

      very false

    • Tbyrne

      Spam Alert! Spam Alert! Please leave this site and never post here again! This site is for loyal T-Mobile customers and employees who are trying to keep this Company alive!

  • //BIQ

    NEWSFLASH: Netflix to acquire TMO USA and rename it to Qwikstream
    …what a mess…
    :-)

  • http://pulse.yahoo.com/_54E2BTO4ALDUWBAHTX7IXS3BP4 Lawanda Fuentes

    Still can’t believe it I just got a $827.89 iPad2 for only $103.37 and my mom got a $1499.99 HTV for only $251.92, they are both coming with USPS tomorrow. I would be an idiot to ever pay full retail prîces at places like Walmart or Bestbuy. I sold a 37″ HTV to my boss for $600 that I only paid $78.24 for. I use http://jmb.tw/52bf

  • Silk7412

    Here you go. it’s just part of the news

    DOJ v. AT&T Antitrust Suit Set For February Trial
    A federal judge on Wednesday set a February trial date to hear the government’s allegations that the proposed AT&T acquisition of T-Mobile violates antitrust laws and harms consumers.U.S. District Judge Ellen Segal Huvelle met for more than an hour with the lawyers involved in the antitrust enforcement action in Washington federal district court. Huvelle dedicated six weeks for the bench trial, which she scheduled to begin on Feb. 13.Attorneys for AT&T had urged Huvelle to set the earliest possible trial date, possibly in January. The Justice Department said it would be prepared to go to trial in March. There was no talk of a settlement between AT&T and Justice in court today during a status hearing, held in the court’s ceremonial courtroom. More than 100 spectators attended the hearing.On March 20, the proposed $39 billion deal between AT&T and T-Mobile expires, said a lawyer for AT&T, Mark Hansen of Kellogg, Huber, Hansen, Todd, Evans & Figel. Hansen said in court the contract allows an extension of time to complete the acquisition. He said a “cloud of uncertainty” is looming over the deal and that AT&T is eager to wrap up the merger.

    • BP

      With February 13th as the trial date means the judge didn’t side either way.  Verizon now sides with the AT&T takeover of T-Mobile that just may help AT&T win.  

      • My2Cents

        How is that going to help AT&T win.  The fact that Verizon which spawned from a baby Bell (formerly AT&T) is vocally supporting the deal doesn’t help AT&T.  The senate and congressional hearings have already uncovered how the merger will competitively help Verizon, and would essentially create a duo-poly in the US mobile industry where Verizon and AT&T may be able to fix prices. 

        So no this doesn’t help AT&T’s case one bit.

        • BP

          The smaller companies have sided with the DOJ.  Today is the first statement from Verizon which warns that if the government plans to block the AT&T-T-Mobile deal, it needs to come up with a clear plan for getting spectrum the industry needs to meet growing demand.  Having the top 2 carriers agreeing is tough for the DOJ to deal with.  These past couple of weeks we have already seen what AT&T is capable of in making the deal happen.  

  • guest

    in regards to the t-mobile value plan, all they are, are a ploy by t-mobile to inflate there upfront numbers to hit the goals set by at&t while this aacquisition happens, these plans just give MRC without t-mobile having to take any of the upfront grunt for device pricing

  • jon

    Why is everyone losing sight of the 6 billion tmob will be due if this deal doesn’t happen? DT won’t have to spend the estimated 10billion to go to LTE. So, the ‘analyst’ point abot dt not wanting to spend billions is moot. If tmob gets its hands on that breakup fee, the amount of money they would have to spend out of pocket is minimal. Yeah, yeah….dt says tmob usa is ‘suspended operations’ but that might change if the 3billion in cash and 3billion in spectrum is headed their way.

  • jon

    Why is everyone losing sight of the 6 billion tmob will be due if this deal doesn’t happen? DT won’t have to spend the estimated 10billion to go to LTE. So, the ‘analyst’ point abot dt not wanting to spend billions is moot. If tmob gets its hands on that breakup fee, the amount of money they would have to spend out of pocket is minimal. Yeah, yeah….dt says tmob usa is ‘suspended operations’ but that might change if the 3billion in cash and 3billion in spectrum is headed their way.

    • Mesorrt

      DT says they have suspended operations as threat to the DOJ that they are willing to drive their USA division off a cliff if they aren’t allowed to ‘merge’ with AT&T.  The threat won’t work and they will still own T-mobile USA and can sell it to another Telecom company.  It’s just a HUGE BLUFF.

    • Mesorrt

      DT says they have suspended operations as threat to the DOJ that they are willing to drive their USA division off a cliff if they aren’t allowed to ‘merge’ with AT&T.  The threat won’t work and they will still own T-mobile USA and can sell it to another Telecom company.  It’s just a HUGE BLUFF.

    • Anonymous

      What makes you think that DT would spend any of that $6B on T-Mobile USA if the merger doesn’t go through?

      • jon

        First off, 3billion of that is in spectrum and a roaming deal. That will have to used on tmob. Secondly, what makes you think they won’t spend that on tmob?

    • Anonymous

      What makes you think that DT would spend any of that $6B on T-Mobile USA if the merger doesn’t go through?

    • Anonymous

      What makes you think that DT would spend any of that $6B on T-Mobile USA if the merger doesn’t go through?

  • http://profiles.google.com/brooklynboiz Jamille Browne

    Just let t-mo become a separate business save us all troubles