Kyodo: SoftBank’s offer to buy T-Mobile accepted by DT

Japan Softbank  to acquire Sprint

There’s a headline you perhaps didn’t want to read this morning. The morning after its chief appeared on stage at Re/code’s conference, reports are circling that SoftBank’s offer for Deutsche Telekom’s controlling stake in T-Mobile US has been accepted.

The news comes via Japanese publication, Kyodo. The site claims that Masayoshi Son proposed the move in a meeting with top T-Mo and DT executives earlier this month. Response from Magenta and Deutsche Telekom was apparently “positive”.

Of course, rumors of an offer being accepted don’t make a buyout certain. But, it’s the first step to discovering if a deal can be pushed through. So far, we’ve read multiple times that the DoJ and FCC aren’t keen on the idea, but could perhaps be persuaded to let #3 and #4 carriers (Sprint and T-Mobile) merge if the evidence for a stronger, and more competitive market was strong.

One thing is clear: Deutsche Telekom doesn’t feel precious about owning T-Mobile US, even if it’s in “no rush” to sell. From looking at the European market, DT would ideally like to concentrate its efforts overseas in its home continent, and provide stronger competition to the increasingly fierce market place there. Selling TMUS would give it some extra capital and room to do that.

Will the deal go through? Who knows.

Source: Kyodo (subscription required)
Via: Reuters

 

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  • S. Ali

    Why waste the next year in regulatory hurdles. That means T-Mobile won’t expand LTE, and Sprint will continue to falter.

    • Kidney_Thief

      They said that network improvements would continue, whether or not another company put in a bid to purchase them. Hopefully they stick to that, because being a T-Mobile customer during the AT&T buyout was a pretty awful experience.

      • kalel33

        Yeah, they said a lot of things before and during the AT&T acquisition that weren’t true. They tell you what you want to hear.

        • Kidney_Thief

          I’m not saying that I’m drinking the kool-aid, I’m just saying that in a recent press conference, they were talking about mistakes that were made during the AT&T takeover attempt, and they admitted that not aggressively improving their network during the whole process was a terrible mistake that they won’t make again.

    • turtle6988

      I think T-Mobile will continue to build. They won’t make the same mistakes they did when AT&T tried to buy us

      • Paul

        My fear is that they will halt expansion, but I hope they learned from AT&T. Otherwise they will see the exodus of customers just like with AT&T.

      • S. Ali

        Unless that expansion involves using the same towers at Sprint, it would be a colossal waste of money

        • turtle6988

          There going to deploy LTE on the GSM band and the 700 band they received from Verizon

        • philyew

          There is a considerable overlap. I posted a quote from Crown Castle a while ago which indicated the number of towers they had where TM and Sprint were colocated.

        • http://rosarynovice.stblogs.com/ Augustine

          Geographical overlap is meaningless when different radios are required in the user equipment. There’d still have to be duplicated costly tower equipment with no benefit to customers.

    • philyew

      I think one thing we can be sure of is that, if TM starts to rein in its competitiveness before the deal is even done, they will utterly fail the test that the takeover has to improve competition, rather than reduce it.

      In my view, it is even more important now for TM to give at least the appearance of pushing forward with Uncarrier – hence the announcement yesterday of Uncarrier 5.0 in three weeks’ time.

      • http://rosarynovice.stblogs.com/ Augustine

        It took a foreign company to shake up the market. A company which didn’t have as many buddies in their pockets inside the beltway. With its acquisition by an American company, TMO will become yet another predator corporation defended by their lackeys in the government at the expense of us the people.

  • Vaughn is Right

    This isn’t certain yet… but something tells me that TechHog just set himself on fire somewhere!!!!

  • mreveryphone

    I’ve said it once and I’ll say it again… The nexus 5 was a test phone to see if it could co-exist on both tmobile and the sprint network which it did just fine. It’s only a matter of time and of course… $$$

    • http://rosarynovice.stblogs.com/ Augustine

      The version sold for one carrier was different from the one sold for the other. Additionally, the GSM one was sold by at retail, and the CDMA one, only from the respective carrier.

      • IamTwone

        You are wrong there is only 1 model for the US and another model for other country bands, I know I have a sprint version and use it on tmobile when i ported over works fine on lte and hspa+

        • http://rosarynovice.stblogs.com/ Augustine

          The retail N5 doesn’t have CDMA, while the CDMA one from the carrier is both CDMA and GSM.

        • Kidney_Thief

          Directly from the Play store:

          2G/3G/4G LTE
          GSM: 850/900/1800/1900 MHz
          CDMA: Band Class: 0/1/10
          WCDMA: Bands: 1/2/4/5/6/8/19
          LTE: Bands: 1/2/4/5/17/19/25/26/41
          If you’d like an explanation of what all this means, you may refer to this page (http://www.phonearena.com/phones/Google-Nexus-5_id8148) and scroll down to technology.

          Every single US model is exactly the same.

        • http://rosarynovice.stblogs.com/ Augustine

          I stand corrected, thanks.

        • mreveryphone

          Nice! Thanks for the back up!

        • Kidney_Thief

          No problem!

        • Willie D

          Umm, the nexus 5 does have CDMA and GSM in one device and LTE support of both Sprint and TMobile. I know, I was a customer of Sprint and used the Nexus 5 and moved to TMobile and am typing on it now…

        • maximus1901

          He’s clueless about so much.

        • Willie D

          Yeah I know. He speaks using terms and ideas from 5 years ago and knows nothing of technology.

        • Guest

          You can’t activate a CDMA Phone unless its specifically intended for the carrier it’s supporting. This is not like GSM. A Sprint phone will not fully function on T-Mobile because they do not support all the bands that T-Mobile uses.

      • mreveryphone

        Nope not true at all…

  • DDLAR

    If this happens, Sprint will get two additional frequency bands that they don’t already have (700Mhz lower A and AWS). I think they will have more frequency bands than AT&T and Verizon combined. What a mess!

  • vinnyjr

    Sprint will destroy the fast data speeds we are enjoying as T-Mobile customers. Sprint was so dead against the AT&T – T-Mobile merger but now all of a sudden they want T-Mobile and their radio frequencies are so different, what a freaken mess this will be. T-Mobile is a GSM Network while Sprint is a very ancient and slow CDMA Network that just don’t mix. This is the worst thing that could happen to US T-Mobile customers. This also means any new phones that T-Mobile has or getting will not work on this new Network. This just conpletely sucks all around. I will not stay, I will be leaving, 10+ years with T-Mobile and I am just sick to my stomach.

    • Matt

      I think John Legere and the T-Mobile management team will probably be in place. I don’t think we have to worry as a merger would probably be good for T-Mo

      • Mirad77

        Given the fact that you are in the closed door meetings.

    • NYC33

      The old sprint network was ancient. The new base stations can operate gsm, cdma and LTE.

      • Willie D

        The new base stations can’t operate anything actually. My roommate is a Sprint customer has traveled to NYC, Chicago, Los Angeles, Texas and Oakland, all fully deployed network Vision areas and gets worse service today, more dropped calls, less coverage, worse speeds than she did 3 years ago before LTE rolled out. So no, the new base stations don’t support anything other than a plan of embezzlement of funds from customers.

      • mikey

        Nobody wants cdma anymore. If you pay attention to the labels on phone boxes your will notice cricket is switching to gsm also and they have a warning label saying current phones they are selling will not work in the near future once their switch is complete

        • Jarobusa

          CDMA is only used until LTE is fully deployed. Look for CDMA to fade away. Just like they did for iDen.

    • fsured

      Sprint was very vocal about ATT not buying T-Mobile. I think it would be fair for ATT to come out against this merger in the same way. Push that clause the FCC put in place that future pending transactions/purchases gives them the option to change the spectrum auction rules. It’s Sprints turn to that heat.

  • fsured

    I have never been a customer of a company that was bought by another and kept the same perks. Eventually the programs or perks get phased out. This occurred when WAMU was bought by Chase. Their free checking account went a way, started charging higher fee’s like $5 for a money order, all while sending out letters to customers that things won’t change. I forgot what bank it was, but I had free access to my credit report and score as a perk of the card. The bank sold their credit division to Citi and after a few months that perk went away and I was offered to pay into their credit monitoring product that offered credit scores. Look at what is happening now with American Airlines and USAir with the frequent flier program. It’s changed and the average customer is getting shafted.

    Nothing with the T-Mobile we like today will remain beyond a year if a purchase goes through. They will sweet talk the regulators, shareholders, and customers by tossing us a bone saying things will be the same and nothing will change. It is when this information comes out and the changes start happening that I will make the decision to either keep my lines with the new company or switch to ATT. I like my phone enough to keep it, the freedom to swap sims and use other companies if needed, and know that with ATT I won’t have to wait years to use a reliable network just about anywhere.

    • thepanttherlady

      Well said.

      • David

        That’s what I did when AT&T wanted to buy T-Mobile. I knew if it goes trough everything I like about T-Mobile will go away.
        At the end I did switch to AT&T before they cancel merger because I wanted a high end Windows Phone and tired of waiting for T-Mobile so maybe, maybe they finally offer a phone that worth having and it is not some plastic cheap looking phone with buggy OS.
        Anyway I switched to get Lumia 900 on AT&T after being with T-Mobile for 10 years. Now I have Nokia Lumia 1020 and love my phone and during these last 2.5 years I have to say so far I am happy I did (I get a better service than recent T-Mobile service).
        But when I heard the news today I felt really sad and decided to come here after long time. I do hate Sprint and they crappy services. Even tough I am not with T-Mobile anymore but this is sad news and I am afraid anything good left from T-Mobile will go away after this merge.

      • macman37

        Do you, Cam, Dave, etc. have any idea to where we can place our opposing views on this acquisition/merger like we did when AT&T tried this?

        • thepanttherlady

          I don’t but someone mentioned starting a petition on change.org. The last time I went there I found one petition but it honestly wasn’t well written with substance on why we’re so against it. Would love for someone to start one so we can get it distributed and get those signatures!

    • Mirad77

      Agree with you here. The deal goes through I’ll become a new att customer ( as much as I hate them, but hate sprint even more) asap.

      • maximus1901

        Cricket wireless. Att network with the TMO price + a little.

        • Mirad77

          Even better. Thanks.

  • macman37

    Another “Rope-A-Dope” strategic maneuver to get more money and spectrum played by Deutsche Telekom & T-Mobile USA – just like how they stuck it to AT&T (those snakes)!! Pray to God that it gives T-Mobile USA’s subscribers similar or better results!!

    • fsured

      Problem is the fee if the deal doesn’t go through is it won’t be anything near what AT&T paid. There has also been no information of spectrum being part of the break up deal.

      Those who are new here and weren’t around when AT&T made their attempt, DT took the money to pay debt in Europe. They left T-Mobile with the spectrum and the company had to find it’s own way to finance things for the HSPA+ roll out and refarm. DT may have given some of the money to T-Mobile but the lion share they took.

      I think a few weeks back it was reported that the monetary value to a break up fee would be in the 1 or 2 billion range. I think the AT&T fee was 4 to 6 billion. Far less.

      • Willie D

        AT&T paid $4 billion cash, AWS licenses worth $3 billion and a 7 year 3G roaming agreement with a few billion.

        • fsured

          Yep but the cash didn’t go to T-Mobile. It went to DT. Thats what I want people to remember or be informed of if they weren’t around originally. So people thinking T-Mobile would get to keep any cash out of this deal if it fails, could be let down. DT would probably keep the cash since they can’t use American spectrum in Europe.

      • macman37

        You bring up some great points to consider; and I just hope that with Deutsche Telekom allowing Sprint to acquire T-Mobile USA that the FCC doesn’t remove the restrictions that they had placed upon Verizon & AT&T. Someone commented a few weeks ago that if Sprint and T-Mobile USA attempts to merge that the FCC may remove some or all of the restrictions that they had placed on Verizon and AT&T for the 600 Mhz auction. Very risky maneuver by T-Mobile since they need a lot more of low frequency spectrum to expand their coverage.

  • vinnyjr

    All the hard work and success that John Legere and T-Mobile USA has accomplished over this past year and a half will come to a craqshing hault because of this new development. Not many new customers are going to want to jump into a Carrier that the future is up in the air. This is the dumbest news T-Mobile could have let out. They just shot themselves in the ass. I am just shocked that T-Mobile with all their growth just flushed it all away with this dumb ass development. T-Mobile DT just killed the future growth of their US company. Maybe it was done on purpose to push the sale and convince or change the minds of stockholders that were on the fence. Who Knows, I’m disgusted.

    • UMA_Fan

      If Tmobile US remains in control then there’s nothing to worry about. In fact its likely to be structured that way to cater to regulators over any other reason.

      • philyew

        I wish I could share your confidence, but Braxton Carter’s comments the other day about aiming to achieve a 50% margin tell me that, ultimately, Uncarrier will be trashed and the newco will start behaving exactly the same way that AT&T and Verizon behave at the moment.

        It is simply not true that economies of scale will allow the newco to achieve a 50% margin while still maintaining the Uncarrier positioning. Why not? Because Verizon’s ARPU, which significantly supports their higher margins (52% EBITDA margin at the last count), is around 14% higher than TM’s.

        It is inconceivable that a company making a 50%+ margin can do so without soaking their customers, and a three-company concentration of the market will assist them in maintaining that abuse.

        • xmiro

          the comment by Braxton Carter should be included by those of us who comment to the DOJ opposing the merger

        • http://rosarynovice.stblogs.com/ Augustine

          And such margins, boys and girls, is why cellular service is two to three times as expensive stateside than in Europe and the US rank at the bottom in speed, better only than the Philippines (v. http://www.cannongroupinc{dot}com/?p=4358 ).

        • maximus1901

          Could be the fact that all of Europe could fit inside America. Imagine if groups of 2-4 states had 3-4 carriers.

        • http://rosarynovice.stblogs.com/ Augustine

          More competition?

    • xmiro

      this news is a rumor, and the transaction is not done yet.

  • guidomus_maximus

    Read the Reuter’s Article:

    That is because T-Mobile is likely to be the surviving brand and its CEO, John Legere, is likely to lead the new combined company

    • Paul

      Certainly hope that is the plan.

  • xmiro

    From Reuters: “The sources said no decision was imminent.” So DT execs have not decided whether to accept the offer, yet.

    Another thing not to forget is the fact that a merged company will have more spectrum than AT&T or Verizon, and the potential regulatory hurdles that might entail in addition to eliminating a 4th wireless competitor.

    We might end up with two brands sharing the same network by the time all is said and done

    • http://rosarynovice.stblogs.com/ Augustine

      The spectra do not overlap, so it helps little for the customer and makes maintaining and expanding the network more expensive.

      • Willie D

        You really don’t know much do you? Both Sprint and T-Mobile heavily invested in metro areas, majority of their networks cover the same ground. In fact, Sprint has an advantage outside cities in that it covers freeways in the middle of nowhere where as TMobile may not..however 90% of their networks directly overlap. The spectrum is extremely complementary as both operate 1900Mhz (PCS) as a main band, onehas majority of its LTE and 3G on it (Sprint) and the other has shifted majority of its 3G to it and increasing LTE service on it (TMobile) this in fact compliments each other perfectly.

        • http://rosarynovice.stblogs.com/ Augustine

          TMO uses currently PCS and AWS, whereas S uses PCS, SMR, CLR and BRS. The only overlap is PCS. Therefore, 1 out of 4 is barely any overlap to make for a synergistic use of spectrum. Rather, it just makes phones and tower equipment more expensive with no direct benefit to customers.

        • philyew

          How might carrier aggregation play into that though?

        • http://rosarynovice.stblogs.com/ Augustine

          Carrier aggregation can be done best between neighboring bands without interruption in the spectrum. That’s what TMO did in Dallas after it acquired another carrier and merged two neighboring spectra into the same 20MHz stretch.

        • maximus1901

          Don’t know anything.
          There’s intra and inter carrier aggregation. What TMO did in Dallas was simply have a wider channel by taking metros spectrum and merging it with their own. There’s no aggregation.

        • philyew

          I think there’s a lot more possible than that. I read over at FierceWireless and Gigaom about VZW and AT&T plans to aggregate 700MHz and AWS. The following is a quote from Verizon’s own site:

          “Carrier aggregation allows a wireless provider to operate two spectrum bands as one so that smartphones, tablets and other devices can take advantage of airwaves on either band at the same time. By combining the spectrum of Verizon Wireless’ 700 MHz and AWS bands as well as any future spectrum as one asset, carrier aggregation increases the network’s ability to provide consistent performance along with increased capacity.”

        • http://rosarynovice.stblogs.com/ Augustine

          Read the statement carefully: “either band at the same time”. It does not say “both bands at the same time”. What they mean by that is what Sprint did with its Spark: the devices are capable of getting LTE on multiple bands, but not at the same time. That would require a lot of power from the device. Rather, the device will use the band with the best signal.

          VZW is deploying LTE on both SMH and AWS. TMO, on the other hand, only on AWS. Though it could deploy LTE on PCS as well, the problem is that it doesn’t help, as both are in very high frequencies, so it’s likely that conditions will weaken both signals similarly.

          That’s why the SMH spectrum that TMO acquired from VZW is vital. It’ll be able to offer LTE in quite distinct frequencies and thus provide more consistent performance.

        • philyew

          But the issue isn’t whether they provide simultaneous use to increase throughput, but whether they are aggregating non-contiguous bands.

          You replied to me “Carrier aggregation can be done only between neighboring bands without interruption in the spectrum”, but this states clearly that Verizon are to do carrier aggregation between 700 MHz and AWS, which are clearly not “neighboring bands”.

        • http://rosarynovice.stblogs.com/ Augustine

          No carrier currently has phones operating with two radios at the same time. The term aggregation is being abused.

        • philyew

          I didn’t actually say that they were doing it now. I interpreted that it is in their plan – “are to do”, not “doing”.

          Why do you make this so hard, Augustine? LOL!

        • Roger Sales

          because you’re wrong and you shouldn’t say things you can’t ascertain are fact?

        • philyew

          You know for a fact that I am wrong? Every day we connect various pieces of information from multiple sources, evaluate them and reach conclusions. It’s deductive reasoning and people do it without even realizing.

          In this case, I took a direct quote about carrier aggregation from Verizon’s own site and connected it with numerous reports from reasonably authoritative sources, like Fierce Wireless and Gigaom among many, which stated that Verizon and AT&T intended to implement carrier aggregation between the 700MHz and AWS bands.

          It therefore was and remains reasonable to conclude that what Augustine said on the subject wasn’t entirely correct.

          What more authoritative sources do you have to correct me?

        • http://rosarynovice.stblogs.com/ Augustine

          You were onto something. 3GPP did define aggregation of different carriers in disparate frequencies in addition to neighboring ones, though the effective bandwidth is not as wide as when neighboring channels are joined together, as part of LTE-Advanced (v. bit{dot}ly/1hjC7Q4 ).

        • Willie D

          Carrier aggregation can jump spectrum bands now.. Just saying.

        • Jarobusa

          This is the wave of the future. Very difficult to have say contiguous 100 Mhz. There will be many smaller bands being aggregated into one block.

        • Willie D

          CLR? You mean EBS spectrum? Not BRS either.. And its ESMR not SMR….

        • Roger Sales

          CLR/SMR are parts of the same thing, which is the 800/850 frequency.

      • Jay Holm

        “spectra”? Do you mean spectrum?

        • philyew

          Plural…

      • Jarobusa

        They do share 1900 MHz (PCS)

        • http://rosarynovice.stblogs.com/ Augustine

          It’s complicated. The PCS band is subdivided into 7 blocks. They frequencies for each block is in this order: ADBEFCG. S and TMO own many licenses for the wide A and B blocks, but both have sparse licenses for the other narrow blocks. S owns the licenses for the narrow G block nationwide and other carriers have the licenses to the narrow C, D, E, F blocks. This means that if S and TMO merge, their blocks will still be separated by narrow bands owned by other carriers. In some place they might merge their licenses, but only where one has one for a wide block and the other, for a narrow one. Thus, overall, they’d share the PCS band, but still be separated.

  • Nearmsp

    I hedged my bets by buying T-mobile stock a while back. I still think even though political hacks sit on the FCC (aka “commissioners”) have rubber stamped pretty much what ever their political masters on the hill have told them to do, it would be bridge too far for these industry pimps to certify that a merger would make the wireless market more competitive. I personally am going to do a heavy canvassing if this news is true. Though, seeing the stock market action, hot money is not on this deal at this stage. Yesterday WSJ had an article on this topic about how Son wanted T-mobile so he could provide internet competition to Comcast. The guy is a nut. He made a bad deal for softbank by buying a lemon and now wants to buy T-mobile to make good its investment. Legere is being offered a leg by being promised CEO of the combination. With elections this year, this is a bridge too far for Softbank.

    • TechHog

      The number of metaphors in this confused me.

    • mikey

      Now could be a good time to buy sprint. As rumors continue sprint stock will raise in value since it could do good for them but tmobile will drop since most likely it will suck for us. The debt and losses sprint is suffering combined with the costs to merge the two networks and the price of the buyout will mean longer for more LTE rollouts and higher prices.

    • KingCobra

      I agree. He probably wishes he would’ve bought T-Mobile first now. With how poorly Sprint has been performing, he might have been able to argue that he needed to buy them or else they would go out of business.

      • http://rosarynovice.stblogs.com/ Augustine

        Which says more about him than about S. How come an international entrepreneur ends up acquiring a lame duck? Did he do his homework properly? All that he had to do was to ask any American on the street to figure out that S had no future.

        • Kyle

          S does have a future though. And Son has been proving that with what he has done. I don’t even live in the US and know this.

        • izick

          The problem with your logic here is that the same thing would have been said about T-Mobile prior to the Legere era.

        • Roger Sales

          He probably saw it as a matter of scale. T-Mobile only had 34 million customers, Sprint had 55-56. He thought he was getting the company that had less issues.

    • kyle

      Son s a genius. Look at what he has done in Japan and Asia.

  • Winski

    The only way this happens is :

    1) Legere is overall CEO – Hasse gets dismissed.

    2) Sprint’s CDMA network gets TURNED OFF.. It’s a piece of junk. All cells get converted to GSM.

    3) ALL future marketing programs are developed by Legere’s team…..

    4) Son goes away as an active part of the merged companies..

    • Jarobusa

      CDMA is going to be turned off once LTE is fully deployed (may take a few years for legacy support). Just as Sprint did for iDen.

      • http://rosarynovice.stblogs.com/ Augustine

        Given that S has now thrice more customers on CDMA than Nextel on iDEN. And it took 8 years to shut down iDEN…

        • Kyle

          Well Sprint is being ran by Softbank now who has deep pockets. It won’t take that long to shut down CDMA. If Son said tomorrow he wanted CDMA shut down by 31 December 2015. It would be done. And Son would make sure of it.

        • http://rosarynovice.stblogs.com/ Augustine

          Son is human, right? I doubt that 50 million of S customers would take it lightly that they’d have to get new phones and not jump ship.

        • Kyle

          Depends on how it is handled. Maybe give everyone a free upgrade that would need a new phone. But the fact is what I said was true.

      • AK

        CDMA is going to be eventually turned off just like GSM/UMTS/HSPA will
        eventually be shut down, and not just by Sprint and T-Mobile but also by
        AT&T, Verizon and everyone else. Once 5G is out, 2G/3G
        networks will be phased out. Softbank has to decide the best path forward whether it is to continue running the 2 types of older networks until both are shutdown or start decommissioning one sooner.

      • Roger Sales

        And that all went so well for them…..oh wait.

    • Bilesha Welton

      Only way this happens is if we let it. We came together to fight the AT&T merger and we can do it again!

      • Kyle

        First off all you didn’t fight the AT&T merger. Stop trying to rewrite history. And this is different than AT&T to begin with. You see to confuse Sprint of 5 years ago with the now Sofbank Sprint. It is a completely different company. This deal would be good for a wireless industry as and good for us T-Mobile customers and Sprint customers. Research is your friend.

        • KingCobra

          How so? Who is to say that once Son has T-Mobile he won’t just raise prices up to AT&T/VZW levels in order to get back to those 50% profit margins? Or are we just supposed to all believe he’ll keep low prices out of the goodness of his heart?

          He hasn’t exactly made Sprint into a competitor yet. Perhaps he should focus on what he already owns first.

        • Kyle

          Well let’s see let’s look at Son’s history.. He has a history of merging companies and lowering prices. You see forget the size of what the customer base would be of the combined company. Meaning more profits. And by lowering prices bringing more in. Son has promised a even bigger price war.

        • KingCobra

          So why hasn’t he initiated one yet with Sprint?

        • Kyle

          He has. If this merger goes through you will see the lowest prices around and the fastest speeds around.

        • KingCobra

          He hasn’t. They’re losing money and customers and their prices are actually close to AT&T/VZW. Hell their ARPU is even higher than AT&T. Based on what he’s done with Sprint so far here in the US, I’m not inclined to take a chance on his “promises” and I’d venture to say most consumers aren’t either.

        • Kyle

          He has. Yeah they are losing money but as much money as T-Mobile is long. The prices are lower than AT&T and Verizon. Especially the new off contract plans. They may have a stupid name but that they are cheap.

        • philyew

          How does he guarantee that he will carry the promise through?

          Scaling up TM/Sprint to close to the size of Verizon and AT&T will still only generate income to the extent of Volume * ARPU. As long as Verizon and AT&T’s ARPU is significantly greater than that of the newco, their margin is likely also to be significantly higher – unless you can prove that there is significant operational inefficiency in either AT&T or Verizon at this time.

          Since Verizon’s margin is around 52% and TM’s 5-year guidance maxes out at around 34-36%, it can reasonably be assumed that the only way they get to the 50% margin is by increasing ARPU. In other words, taking more money from each customer every month.

        • Kyle

          Do some research.

        • philyew

          Really?

        • Kyle

          Yes. I hate stupid Americans like yourself.

        • philyew

          That’s obvious, but you don’t know the first thing about any of us. You have, however, been warned by the moderator to curb your abuse, so I’ll leave you to enjoy the time out step, as I’m sure you’ll be headed there shortly…

        • thepanttherlady

          Beat you to it. :)

        • philyew

          LOL!

        • myremarq

          look like i have been ban as well my discussion post are not here at tmo sorry..

        • thepanttherlady

          If you were banned, you wouldn’t be able to post.

          Is this comment from the same email and IP address as the others? Let me know and I’ll look to see if they were somehow flagged by Disqus.

        • Roger Sales

          The other problem with Son’s whole “i’m the good guy in Japan” theory is that A) their pricing isn’t as affordable and cheap as he claims it is, and he is actually the owner of the #2 telecom in Japan subscribers if you account for Softbanks ownership of the tinier #4 and #5 carriers. almost 43m customers to KDDI Au’s 38m.)

  • JBrowne1012

    Screw this if DT wants out thats ok but don’t sell us to the competition that has proved that it cant manage an effing network

    • Kyle

      Softbank has managed Sprint just fine in its not even 1 year of ownership.

      • xmiro

        right, can’t execute on strategy to save their lives. Apparently :)

        Neville Ray will be running the merged network you can be sure of that :)

        • Kyle

          You are confusing Sprint managment of the past before the Softbank take over. Look at what Softbank has done for the company since the take over. You will be shocked. Anyone who isn’t a blind bias loyalist to one company can see that.

        • vrm

          does sprint/softbank pay less than minimum wage to shills here ?

        • Kyle

          Pathetic response. Typical stupid American.

        • AK

          Sprint had Network Vision rolling out long before Softbank came into the picture. I think most people are too quick to give credit to Softbank for improving Sprint’s network, it was already happening. Softbank is having an impact on Sprint. Aside from the financial benefits, it is changing the corporate culture. I believe Softbank was directly responsible for the Framily campaign.

        • Justin Merithew

          Are you going by Kyle now, Masa Son?

      • Bilesha Welton

        Just fine?? Please tell me you’re joking.

        • Kyle

          They have been. Look into. Softbank took control over Sprint late last year and has managed to turn several things around. Improve it’s old 3G network greatly. Improve Voice. Roll out LTE to more markets and improve speeds. Begin a roll of Spark. Brought new sets of off contract plans to Sprint. Anyone who isn’t biased can see that. Everyone in the tech media is talking about the big improvements Softbank has made to Sprint. How about you stop being biased and you do some research.

        • Bilesha Welton

          Aww but I love my pretty magenta kool-aid :(

        • Kyle

          Figures. Americans have such low IQs. They don’t care about facts. I pity you Americans.

        • Bilesha Welton

          Actually I’m an expat from Britain. And perhaps I should have given that comment the bloody /s treatment so you knew I was joking ;)

        • Kyle

          Yeah I like I believe that. Your grammar is way to bad to be a Brit. And you weren’t joking. You were being serious. You only say you were joking because you were called out.

        • philyew

          “Your grammar is way to bad to be a Brit.”….which I guess confirms that you are not a Brit either…;-) *Just kidding*

        • Bilesha Welton

          It sounds to me like you’re bias. I really don’t care what you believe. I know where I was born. And I’m sorry but how can you not take “pretty magenta kool-aid” as a joke??

        • Kyle

          I’m sorry that you feel ashamed about being a stupid American that you have to lie about it.

        • thepanttherlady

          Enough.

        • Bilesha Welton

          Apologies. I’ll shut up.

        • Kyle

          Stupid Americans love to shut down debate.

        • Bilesha Welton

          “you feel SO ashamed” ….fixed it for you. ;)

        • Shane

          You’re way out of line, and making yourself look ridiculous at the same time. How are you going to diss someone on their grammar when you can’t even type one sentence correctly?

          “Yeah I like I”
          “..to bad to be”

          Not only do you do yourself a huge disservice, but you shame your own country by attacking another.

          I don’t even read this site, but clicked a link for news. I just felt compelled to reply because of how ridiculous you are.

          Grow up.

        • thepanttherlady

          Thank you for stopping by, Shane. Debate is welcome as is difference of opinion. What is not welcome is someone being a douchebag which this poster was. He’s now gone. :)

        • Alex

          Then if they need to research more I would suggest you do as well. Is SoftBank trying to make changes? Yes. But, Sprint started rolling out their current LTE technology in the Chicago area back in 2012. April if you want to know the month. This was well more than a year when SoftBank took than reigns. Also, SoftBank took over in July of 2013 which last I knew wasn’t the end of the year but, I digress. They also have lost more customers than any other carrier do to the terrible coverage they are having with their new LTE. Customers that had no issues inside their residence now have issues with coverage and signal strength along with dropped calls. Just ask anyone in Texas, Louisiana, Georgia, North Carolina, and Florida just to name a few.

    • Jay J. Blanco

      DT is going to hold a minority share in the company

    • Jay J. Blanco

      DT is going to be minority share holder their not completely exiting

  • KingCobra

    Immediate Beneficiaries of this proposed merger:
    DT – Will receive a massive payday from Softbank
    Softbank – Eliminates a dangerous competitor, immediately becomes almost as large as AT&T/VZW
    AT&T/VZW – Annoying competitor in T-Mobile is eliminated, will receive divested spectrum from the combined Sprint/TMO. Will no longer face 600 mhz auction restrictions and can freely buy up the majority of that spectrum

    Longterm beneficiaries of the merger
    Softbank – Can raise prices back to near AT&T/VZW levels due to no alternative low cost carrier in the market
    AT&T/VZW – Continue their duopoly on low band spectrum and no longer have to be concerned with the price war initiated by T-Mobile. Back to 50% margins.

    Losers of the merger:
    US consumers – no alternative low price major carrier in the marketplace. 3 company marketplace will shape up to be just as “competitive” as the Canadian wireless industry. Get your wallets ready if this goes through.

    • Kyle

      Your facts and predictions are wrong.

      • HeatFan786

        Actually, he brings up valid points. M&As just reduces competition and centralizes wealth within less companies. Lawyers also profit because they have more work w/ acting as bargaining power for both sides. The fact that you didn’t offer anything to support your notion shows that you’re not as familiar with the subject.

    • http://rosarynovice.stblogs.com/ Augustine

      What consumers will get is a triopoly. Grand! Not.

      • Kyle

        Better than the Duopoly with 2 smaller carriers who can’t compete with the big boys like we have now.

    • xmiro

      actually we might end up with a 4th carrier if spectrum is divested, Dish perhaps who just finished buying PCS spectrum and who might be in the running for this year wireless auctions, and who already own 40Mhz of AWS-4

  • steveb944

    Wow this came through quicker than I expected. Here we go AGAIN.

  • James

    Thepanttherlady is homophobic. Why do you have a homophobe as a mod? She is nothing more than a bully.

    • thepanttherlady

      Nice try, Kyle. :)

      ETA: My job is to maintain peace on this forum. When you distract from the topic at hand by trying to insult people with “stupid American” etc. you are the bully.

      • philyew

        Well said.

        The joke is that at least one person he insulted that way definitely is NOT an American….

        • Cam Bunton

          Shocking.. Only Americans should be allowed on these forums. ;-)

        • macman37

          Any news on which URL we can put our opposing views of why this merger/acquisition should be blocked by both the DoJ & FCC like we did when AT&T tried this a few years ago?

    • just me

      I lol’d.

      > I hate stupid Americans
      > I don’t even live in America but I know their industries and infrastructure the best
      > You’re all stupid Americans
      > In case I didn’t mention it, Americans are stupid
      > OMG Y U BAN ME HOMOPHOBE

      Thanks for the laugh, buddy

      • http://freedomisthedream.com Wesley

        It sounds like somebody has Amerophobia! :p

    • PapaSmurf

      There is nothing wrong on having a certain phobia.

      • thepanttherlady

        The only phobia this woman has is of heights. :) Actually, that’s :(

  • izick

    I think that people on here are discounting M. Son as a CEO/owner. Any new ownership/management takes on years of contracts and past mistakes that cannot be fixed in a matter of months. Sprint’s network isn’t even built/managed in-house, but it is contracted to a third party, making it more difficult to control what has already been set into motion. Any new major ownership/management takes at least 2-4 years to see the full benefits of new management. Framily is potentially a HUGE cost savings vs. any other carrier out there ($45/month for unlimited TT&D, yearly upgrades, on a no contract/no etf plan. Even at it’s highest cost for unlimited TT&D for a single person, it costs $5 less than T-Mobile’s $80 unlimited plan.*) AND it brings more customers on to the network. (Attempting to cut cost for consumer and grow user base.) How could this be bad?

    A new owner like Softbank coming into TMUS (along side of DT) which has a lot more flexibility in build and upgrade compared to Sprint could be very advantageous for coverage/network upgrade and therefore growth. This is especially true in a buyer who is specifically interested in shaking up the US market paired with a CEO who is interested in shaking up the US market (Dan Hesse already said he’s not all that interested in running any new company and is looking forward to retirement). According to Son, the US wireless industry (in terms of technology) is on-par with or slightly above that of second world countries, and he wants to change that.

    Disclaimer: I’m both a former Sprint customer and a former T-Mobile customer. I left T-Mobile for coverage/roaming issues, and I left Sprint before that for speed issues. If T-Mobile offered unlimited (or an increased allotment of) domestic data roaming and continues to cover up some of the 2G gaps, I’d be happy to come back (thus the reason I follow this site so closely). I’d also be happy to return to Sprint if their LTE coverage grows immensely and more quickly and their Network Vision 3G fallback offers an experience consistently above 1 Mbps. I have a Nexus 5, so the choice is mine.

    *For the average consumer.

    • Alex

      Actually if you knew the information for the Framily plan on Sprint versus Tmobile with the same Tmobile is cheaper and better. Let me explain it all so everyone understands. Sprint Framily is unlimited talk, unlimited text and unlimited data that is throttled after 4.5 gb of use. This is $55 a month for the talk and text and 1Gb of data with the add on of $20 for unlimited data. If you opt for ANY data less than unlimited you pay an extra $15 a month if you upgraded after 1/10/2014 on the Framily plan. You also pay overages for any data amount less than the unlimited data amount. So, that is $75 a month with upgrade every year and Installment Billing for the phone. Sprint has insurance for a Samsung Galaxy S5 at a whopping $11 a month with a $200 deductible and if you want the lookout app it’s $13 a month. Now, T-mobile has unlimited talk, unlimited text and 5Gb of unlimited high speed data before throttled for $70 a month. They have the jump program that costs $10 a month that includes lookout app, upgrades whenever you want after you pay half the price of phone and the deductible is $175. And if that doesn’t tell you who truly is cheaper, T-mobile includes Free texting and calls to 120 international countries. T-mobile also has no overages for less data plans. Sprint to text and call same countries it’s $15 a month. Their list is only 60 countries. Let me know if you want any other explanations on cost. We will not even discuss the track record of Sprint dropping the ball.

      • Laststop311

        i guarantee nobody is following that

      • Chad Dalton

        Nicely said…facts plain as day!

      • izick

        I’ll get to it here in a bit. I’m at work.

      • drtish

        Go back to work in the sprint store. Also the name ‘Framily’ sucks!

    • Roger Sales

      Framily is more expensive because overages are tied to that 1GB plan – not everyone needs unlimited. On Simple Choice no matter what tier you fit into, the end result on your bill remains the same no matter how you end up using the phone over that month.

  • http://freedomisthedream.com Wesley

    If this happens, I’ll only stick around if the prices and services stay competitive and they don’t make people switch to CDMA. If the costs and services change to match Verizon and AT&T, then I’ll switch to AT&T. I would rather join the original duopoly and see the new merged company fail than to have a third major carrier that jumps onto the price fixing bandwagon and succeed. That would force governing bodies to split up the big guys again to bring back competition. Paying more for less is not in the best interest of the consumers.

  • HeatFan786

    Sprint will cause a clusterf***k because their lousy service dilutes products.

  • james

    Nonono sprint t mobile is way better sprints customer service horrible

  • james

    Nonononononono

  • Regulator

    Been in wireless for many years and chances are IF this goes through (probably won’t) sprint will migrate their base over to T-Mobile. Two main reasons are T-Mo has a better name right now and a much better network that is GSM which has more potential than CDMA long term.

    • RLB63

      My guess is that TMO structure still survive, especially since the CEO of TMO has pushed that he stay in charge. I also see TMO phones staying because NOT using SIM cards is a consumer pain point that I don’t see him allowing. However, I see the Sprint name surviving for a few reasons.
      One to differentiate themselves from TMO in Europe.
      Two they have a MAJOR investment in NASCAR. I don’t think the contract zipped them to change the name nascar uses again. Plus the Sprint cup sounds much better from a racing perspective than the T-Mobile cup. For those that don’t know NASCAR is a major sport if you like it or not, and a major coop to be affiliated with
      Third, if TMO management tasks over and plans change to TMO type plans it would be a small way to keep current Sprint customers somewhat comfortable. There would be a lot of Sprint customers unhappy with a major shakeup as it is. They will want to limit customer churn as much as possible.

      • Jabbathewocket

        I doubt the Sprint name will survive.. they are bleeding subscribers like crazy.. and have the worst network by far in America.. a merger and rebranding would likely HELP them keep sprint users rather than have them continue to defect in droves..

        Keep in mind that they can do away with sprint, force all post paid users onto tmobile type devices and just use the sprint network and parts of metro PCS bands for prepaid and tmobile bands for post paid in the short term

  • JBrowne1012

    Man I do not want to see T-mobile go, what the hell is DT thinking in relation to these moves anyways they have just recently started turning a profit again, this is not a smart move even if t-mobile is confident they’ll come out on top again. This move will effectively slow down new subscriptions and more people might even leave. Nobody wants an unstable carrier!

  • Todd_the_Hunn

    Gees . This would be so much worse than the AT&T merger . The networks aren’t compatible . This is basically the Sprint – Nextel merger all over again . LOL only over 50k jobs were lost and Sprint has been a financial mess since . If this merger was approved there really would be no need for the FCC to exist . This is a hail mary play by Softbank who has been bleeding since they over paid for Sprint . When Son is saying he loves America what he is really saying is he loves our corporate welfare system .

    • Jabbathewocket

      As I said above.. this is not quite the same as Sprint Nextel.. there are 2 distinct groups here both of which are largely on the same bands.. IE Virgin/Boost/MetroPCS are on the same bands in the US (other than the few areas of Metro that are using Tmobile network atm) leaving basically just the Sprint Postpaid users and Tmobile users to merge..

      Given that the Sprint Postpaid customers are the smallest group, and are on the legacy dead end handsets (even without the merger this group needs new handsets going forward due to the mess that is the sprint post paid network after wimax fiasco) most of the sprint users will need new handsets going forward as they build out network anyhow.. its not hard to picture a short term world where Sprint users are pushed over to t-mobile network and handsets while the network is refarmed for the future.

      In addition its been common knowledge that DT has been looking for a buyer for Tmobile for ages, the big question is will the FCC allow sprint and tmo to merge or not.. they have said repeatedly they want 4 carriers in the US.. and even when DT told them that without merger they would likely be forced to wind down operations of Tmobile.. the FCC didn’t budge on approval of merger.. it will be interesting to see if they look more favorably on T-Mobile/Sprint than they did on ATT/Sprint

    • xmiro

      the CDMA network will be turned off in a few years anyway

  • Cam Fas

    They just won’t go away less competition equils higher prices remember all the good that happened when the AT&T merger fell thru AT&T and Verizon sprint included had to offer lower prices for more service because tmobile began to eat market share

  • jdubb2600

    I seriously don’t understand this move. they just purchased metro last year which helped move them to the number 3 spot. someone please help me understand this

    • Jabbathewocket

      there are several possible positive outcomes from this if it goes through, as well as lots of “unknowns”

      Positives:
      1) The combination of Metro with Virgin and Boost Mobile gives T-Mobile/Sprint/Softbank the 3 largest prepaid vendors in the US

      2) the combined companies are alot closer to Verizon and ATT in terms of US Subscribers which when combined with 1 above allows them to exert alot more pressure on the Big 2

      3) Lots more bandwidth nationwide (not so much short term but long term it would allow the new company to use the old sprint bandwidth for all 3 prepaid imprints, and allowing all the metro pcs spectrum to be used for postpaid.. the reason this makes sense is that while its unlikely that the new company could convince all of the prepaid users to switch to “tmobile compatible” handsets.. the bulk of exisiting metroPCS compatible devices are already on the same bands as Sprint/Boost/Virgin)

      Unknowns/Negatives

      1) Uncarrier and aggressive buildout.. will this continue or will Softbank force them to revert to old school model.. it would largely depend on who comes out on top in management going forward.. but even if Sprint management stays on board.. they where the first to play at changing the rules of the game (unlimited everything etc started at sprint)

      2) rebranding which names survive into the future.. Will the new company be Sprint or Tmobile or something else entirely? Do they Dare rebrand the entire company? the resurgence of T-Mobile lately means this is a very precarious time .. too much of a shakeup could revert much of the recent positive mindshare that T-Mobile is currently enjoying

      3) what will happen with bandwidth and current plans etc.. all up in the air long term.. though short term they probably would not be able to change very much

  • Big Bossman

    SprinT-Mobile

  • josephsinger

    It’s not a “done” deal by any means. It has to go through regulatory approval and that’s not a given either.

  • G-Wiz

    t-mobile is earning revenue but they are not turning a profit, they are still digging out of the hole from 3 years ago. Yes they have growth, we get that indeed, they need to stop the bleeding and selling the company is they way out of this profit sinking ship. Uncarrier is a great idea, but if you are not carrying cash profits to the bank who cares.

    • xmiro

      they aren’t turning a profit because they’re investing billions in the network. Amazon is barely turning profit too because they take the profit and re-invest it in the business

    • Singleweird

      all true but i think q3, 4 well see the higher revenue from growth without the huge aquisition costs and probably rake in some dough.

  • Eric

    Sigh. I am going to Verizon if this deal goes through. I will never again in my life have anything to do with those bastards at Sprint.

    Fortunately my phone is paid for, so no early termination fees.

    • Startswithaj

      I feel exactly the same way. Although I’ll probably go to AT&T. I hate Sprint.

  • Jorgen_Henreksen

    Will the combo platter of WTF that this likely to become, be called Sprint Mobile, or T-Sprint? Then again, they can always eliminate both company names and come up with some other name. Which of the two CEO’s (Sprint or T-Mobile) gets to run the combo or will they both Golden Parachute out and someone from Softbank get promoted to run the company? The whole thing could end up just being called, “Softbank Wireless”. If the combined company maintains unlimited everything plans, I’ll wait and see. This hasn’t successfully passed regulatory approval, much less been officially announced by either company, so we’ll have to wait and see.

  • james

    Nonono

  • james

    My mother in law. Has sprint after 9 you can’t get anyone there website stinks I hate this I love t mobile and hate sprint