WSJ: Sprint looking to buy T-Mobile US

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I have to be honest, I’m not entirely sure what to make of this story, but I’m certain it’s going to create a lot of conversation and debate. According to the Wall Street Journal’s sources, Sprint is looking in to the possibility of buying out T-Mobile. This would obviously create one larger carrier capable of competing with Verizon and AT&T.

Whether or not a purchase would go through is another matter entirely. AT&T tried – and failed – to buy T-Mobile from its owners, Deutsche Telekom just over 2 years ago, a plan which was blocked by the governing bodies. In that instance, it was clearly not in the best interests of American consumers. It would have essentially created a duopoly with Verizon and AT&T leaving Sprint with little hope of ever catching up.

This interest from Sprint is different entirely. According to WSJ, it’s the CEO of Japanese carrier, Softbank who’s wanting to drive the move. Of course, Softbank recently bought 80% of Sprint stock, placing the carrier under Softbank’s ownership. The Japanese firm has also purchased a $1.26 billion slice of Brightstar and grabbed a large chunk of Finnish game-maker, Supercell for $1.5 billion. Softbank are clearly not shy about spending money.

There are two big questions here. Firstly, with T-Mobile’s position in the market strengthening, is it really in its best interest to sell up? Secondly, as mentioned already, would the governing bodies allow the move? Circumstances are different this time compared to the AT&T bid. Joining up with Sprint would more than double the subscriber base, and would create a third genuine force in the smartphone market. So, when judging it purely based on the American smartphone market, it’s a good move for consumers.

However, we have to look at this as T-Mobile fans. In a financial sense, Tmo no longer needs to sell up. Its customer base has grown tremendously over the past 9 months and it’s raised $3 billion of its own cash through stock and debt sales in order to expand and acquire spectrum. Are these the moves of a company looking to sell?

As for Deutsche Telekom’s view on this, T-Mobile US has turned from being a struggling part of its empire to being one of the only bright spots in its business. Apart from in its homeland, T-Mobile networks have not had the best of times recently.

What do you guys think? Was this year’s effort just for the sake of making the company look good for potential buyers, or is it a genuine effort to provide competition to the big two?

Source: WSJ [subscription required] 

Tags: , , ,

  • Frank Rodriguez

    I don’t care what is the Sprint company name they just suck and you know it Sprint just have all those costumers and that money form Softbank they can not do anything about it and for your information T-Mobile have HD voice that you can listen better than a crappy company like Sprint don’t be crying if you see that Sprint did not buy T-Mobile

  • tonyfatex

    How is Sprint going to try and buy T-Mobile, hands down, Sprint is the worst network out there! Their plans are crap, their coverage is extremely spotty, they have a bad track record of mergers and switching technology over, and who still uses Sprint?? Really? Sprint keeps investing into the wrong technology. I give Sprint one more year to reach the bottom of the top 4 carriers. Then T-Mobile will buy them out!

  • Frank Rodriguez

    Yeah I know that T-Mobile have better speeds than Sprint on 4g than sprint on LTE on those countries you don’t have to remember me you bastard go away with your creepy sprint to other side

  • tonyfatex

    ^^YOUR INVALID like Sprint =)

  • tonyfatex

    How is Sprint going to buy out T-Mobile when they don’t even exist anymore, the article should be titled, “Japanese carrier SoftBank plans on buying out T-Mobile”

  • Alex Zapata

    I get the feeling that the DOJ will say no to this. Sprint is already building what I expect will be a very impressive network. Keep the big 4 separate so we can have more competition, and the consumer wins!

  • just me

    Cam, please save us. You need some moderators, man.

    • KlausWillSeeYouNow

      Yeah! Where’s thepanttherlady? I miss her…

      • thepanttherlady

        Just a lurker now since the new owners got rid of all the moderators without warning. Nice, huh?

        • http://pharaohtechblog.blogspot.com/ Conan Kudo (ニール・ゴンパ)

          I was surprised to find out that I lost moderator status as well. :(

        • Cam Bunton

          I’ll re-add you.

        • http://pharaohtechblog.blogspot.com/ Conan Kudo (ニール・ゴンパ)

          Yosh! Thanks!

        • Bklynman

          Wow,Lady this site going down isn’t? I wonder
          where u been hiding. Nice going phone mutt,
          now the trolls will take over. Sorry to hear that.
          Not going viste this site like I did before,there
          really no news on it like before. Once awk for me
          will be enough. Merry Christmas Happy new yr to
          you and your family Lady.

        • thepanttherlady

          Miss you guys too but it just isn’t the same around here anymore. Merry Christmas and Happy New Year to you and yours as well. :)

        • Cam Bunton

          If you’d like to be reinstated, let me know. I can add you.

        • thepanttherlady

          I emailed you.

        • KlausWillSeeYouNow

          WHAT?!

          You’re not a moderator anymore? You can’t be serious…

        • thepanttherlady

          No, all moderators were removed. I have my shiny badge back though. :)

    • pips78

      Yeah I’m probably making things worse by messing with this guy but it’s just too darn fun!!

      • tonyfatex

        LOL He’s funny!

        • pips78

          What makes even more funny is that is unintentionally funny.

      • donnybee

        It’s funny crap! Especially when you end with “a donkey says>>>” and he responds again. I’m not sure why I find it so funny… But he really doesn’t make much sense.

    • FuturePS4Gamer

      I’ll moderate

  • mreveryphone

    Wow this thread got real immature……

  • bucdenny

    Here is how it can be done. To those that are concern about CDMA/GSM. It is actually CDMA and WCDMA.

    Set up WCDMA/LTE on Sprint Network Vision sites would be pretty easy. Then shut down all redundant Tmo sites. Then convert all unique Tmo coverage sites to Network Vision to include CDMA/WCDMA/LTE.

    On the device side, continue with Sprint’s device ecosystem with CDMA/LTE and WCDMA support too on all new devices. Obviously a CDMA/WCDMA/LTE device is not a big hurdle anymore. And with 90M subscribers, Sprint/Tmo combined would have plenty of girth to get OEM’s to support this undertaking in new devices.

    Existing devices would not be affected. As CDMA customers and WCDMA customers will still be able to access all their existing coverage, and would even have it expanded as more sites are converted with the other technology. The only hindrance to this really is money and the time to pull it off.

    • pbxtech

      The real number would be 80M+ (combined T-Mobile and Metro PCS) on or about January 2015.

      By then Sprint will be around 8M subscriber left.

      • pbxtech

        edit: and dying.

  • Guest

    Are you John Legere’s personal fluff boy? I haven’t encountered the kind of fanboyism you exhibit in your posts even amongst Apple fans!

  • donnybee

    Are you rooting for or against T-Mo? The comment you replied to wasn’t saying anything about the merger, but rather Sprint will fall to T-Mo with it’s current strategy. Your comments are a little strange.

  • donnybee

    Dude you say the weirdest things.. And to be honest, Sprint isn’t that great. Tell me why they’re so great..because SoftBank owns them? Tell me what’s so awesome about SoftBank other than their deep pockets. Tell me something about either one other than “SPRINT WINS, DON’T TRY ME CAUSE I’LL DROP YOU ON YOUR HEAD”

    Maybe lay off the coffee and speed..

  • donnybee

    Dude, get off the sprint teet.

    I think there’s a way this buyout can help both sides, but if it has anything to do with Sprint changing T-Mobile, it will fail. If it means Sprint will adopt T-Mobile’s strategies, give T-Mo it’s spectrum, kick out Hesse and bring in Legere to run the entire show, now we’re talkin. And then we can start taking apart Sprint’s TERRIBLE network.

  • Jay J. Blanco

    As a former Metro PCS shareholder would never support such a deal. I love T-Mobile and I hate Sprint. Softbank is only pushing this deal because Sprint is a sinking ship. DT wouldn’t let this deal go through because they have invested extra money recently to strengthen T-Mobile. This deal would never go through. They want 4 competiters not 3

    • Alex Zapata

      I still think TMO could benefit from picking up regional carriers like US Cellular and CSpire. Maybe I’m just crazy though. Lots of A block for LTE would be really nice.

      • Jay J. Blanco

        Yes I agree US Cellular has nice spectrum holdings in the west of Mississippi river and T-Mobile definitely should buy those holdings. And build out coverage.

  • Chris

    If sprint actually bought T-Mobile (they won’t) I’d move to AT&T

  • D Velasquez

    i would only move to Sprint the day they rename to SoftBank and agree to bring some fujitsu, sharp smartphones to this side of the globe other than that i guess i would go to straight talk for my cellphone needs i guess, of course if this hapens anyway…

  • donnybee

    Well thanks for the enlightenment on why these companies are so great. You’re obviously a well educated man. I feel like we’re all talking to a kid. Well, it IS the internet, so we more than likely are.

  • pips78

    I dont care about T-mobile and Sprint merging enough to start insulting EVERYONE with an opposing opinion. This merger talk is so old. It’s been going on for years. Leave it alone until an actual news announcement is made. This is nothing we haven’t heard before.

  • pips78

    Cuz you like to come in here and insult people. Horribly at that. Need a salt lick, Donkey? It’ll calm you down. How bout a carrot? Try apoloigzing for calling people queers and losers. It’s unnecesary and immature. So now i will f with you and apparently you dont like it and can’t take what you dish out. I still haven’t seen any intelligent input from you.

  • tonyfatex

    LOL You crazy all right… Anyone defending Sprint is crazy.

  • fsured

    Hey my “Dearest Friend” UniqueDrewski85. It’s already being reported that regulators and the DOJ are not in favor of a Sprint attempt to buy T-Mobile. Go check out the article on CNET. Your highly intelligent and trustworthy insight to it’s “going to happen” just went out the window bud. The reasons mentioned are the same reasons everyone here has been telling you. Peace out.

    • pips78

      Dude.. now hes going to kill your family. What have you done???

      • Alex Zapata

        Not if I do it first

    • Freddy

      Lmao ! It’s just saying pretty much that they think it’s not in favor off the FCC & DOJ ! Just give this merger a chance

      • fsured

        The article says regulators in DC are signaling they would not allow it already. The title of the article is not their position but why the author thinks they are against it. She then goes on to list the various statements and ideas. We don’t know why regulators are already signaling no to this merger as we are not them. If you put the evidence together as the author did then it’s a pretty strong case to what would be their thinking. Key part is they are already leaning toward not allowing it.

    • mingkee

      It’s time to do a bit house cleanup to clean the poop from the troll.

  • FuturePS4Gamer

    Wow 575 comments!!

    • mingkee

      Unfortunately, most of them are from a spammer “unique***85”.

    • just me

      @Cam Bunton please, please, tell me you’re looking into getting more moderators after this article. Please.

      Note: this is not directed at OP. Just piggybacking off the first comment.

  • FuturePS4Gamer

    Your making yourself look stupid. Please stop

  • mingkee

    Your comment has been captured.
    It’s time to throw ban hammer.
    Enjoy.

  • Alex Zapata

    Oooooh, someone thinks they can fill the shoes of Andrei Chikatilo. Very cute ;-)

  • mingkee

    Off topic.
    Everybody, please cap the picture of comments from the spammer, and save them, and send these captured pictures to Bunton.

  • pips78

    case and point. nothing intelligent to say.

  • sidekicker89

    I just want to say this, if David was still running this site he wouldn’t let the disgusting language that is bring said by a certain spammer.

    • sidekicker89

      being*

      • FuturePS4Gamer

        I agree it’s pathetic

        • mingkee

          He should get a life.

        • pips78

          I’ll admit. I was really digging into the guy. I just don’t like when people talk to others like that. He used and continues to use some really harsh and unacceptable language and has no valid input. It was just so damned fun to drive him up the wall. Although I’m sure he was already up the wall and headed for the attic before I jumped in. I apologize for egging the guy on if it annoyed any of you. It was really slow at work today and I couldn’t resist. Some of you had me cracking up. ANd I honestly hope I made some of you laugh as well! :)

        • tonyfatex

          I apologize as well for feeding the troll. Let’s continue to keep TmoNews friendly and free of ignorance. Again, I apologize for my part in this whole thing.

    • D Nice

      I agree… Some of our fellow TMOERS need to stop acknowledging him by responding to the negative comments. They are just fueling the fire.

  • FuturePS4Gamer

    …..

  • Guest

    In T-Mobile markets that have Ericsson LTE, Ericsson UMTS
    and Ericsson GSM, Sprint will keep Ericsson LTE and add the technology by reframing
    the spectrum. In T-Mobile markets that have Nokia, Sprint is removing the
    Ericsson equipment and installing Nokia. These comments and questions that the
    two networks will be difficult to integrate are bogus because Sprints build out
    plan of its network is to mirror T-
    Mobile’s network which is happing right at this moment. The merger is to make
    the marriage official.

  • justmee002

    Anyone get PhoneDog’s Aaron Baker’s attention about the troubling troll and his attacks?

    • donnybee

      I’m not sure that will help. PhoneDog and Tmonews have 2 different systems for comments. Livefyre (I think that’s what it’s called) is the one on PhoneDog’s site. I think Aaron knows more about that system than Disqus. I could be wrong though..

      Personally I think Disqus is way better than the systems on the other PhoneDog sites too.

  • daphantom

    Wow i see theres someone in here being stupid damm dude settle down who cares if sprint buys tmobile if you dont like it then switch carriers thats what ill do theres no point be name calling or threating anyone in this comments area

  • Cam Bunton

    Wowsers! That got out of hand. Anyone on here keen on being a moderator to help keep an eye on comments?

    BTW – The user in question has been blacklisted and all comments deleted that I could find.

    • justmee002

      Please consider thepantherlady for that position. She has done great job moderating on TMONews!

      • Longtimecustomer

        I second that motion

      • Bklynman

        Yes Lady would do great job,plus she good looking too! :-)

      • thepanttherlady

        Thank you :)

        • sidekicker89

          I agree! she’s the bestest! :D

      • ⓜ@®!ⓞ G@®CI@ ™

        definitely

    • Thomas Czinder

      Thank you, thank you, thank you!

    • Stone Cold

      What would it take to become a mod?

    • mingkee

      Thanks, I considered his posts as spam or junk.

    • sidekicker89

      By the way, that user went on Sprint’s Facebook page announcing how he hates T-Mobile and Metro PCS even though his own cover photo on Facebook was a picture of Metro PCS… clearly he was doing this just for attention.. ugh the hypocrisy!! lol

    • KlausWillSeeYouNow

      What about the panttherlady, Cam? She was the best moderator you could possibly find.

  • mingkee

    Thanks. Such spam with attacking should not be tolerated.

  • thepanttherlady

    Pretty interesting that someone not only hacked your account but they did it right from your computer with your IP address. You really should be be more careful. ;) Buhbye!

  • John

    T-Mobile has 45 million and Sprint has 54 million. Hopefully T-Mobile can dethrone them down the road

  • superg05

    the government would not allow a foreign company to buy two major carriers

    • bucdenny

      What are you talking about. T-Mobile is foreign owned. What is the difference? Softbank is making billions and wants to invest into T-Mobile so it can be more profitable and compete against the big two. Look at the big picture, T-Mobile is not make billions in profits.

  • dduckster

    Pleeeease don’t do it!!!!!
    You(TMO) will be #1 soon enough. Why doesn’t TMO buy Sprint?!?!?!. That would make great headlines!!!!!!

    A LOYAL HAPPY TMO CLIENT!!!!!!