SoftBank USA moniker chosen for merged T-Mobile, Sprint carrier?

softbank usa

Over the weekend, further rumors were published detailing virtually all the speculation we’d already heard last week. Deutsche Telekom has agreed a deal with SoftBank to sell its majority stake in T-Mobile US. As part of the deal, DT – it’s rumored – will have a 15-20 percent share in the new, merged company.

One thing we’ve never been sure of is what would happen with the company name. Clearly, it was never going to be a hideous Frankenstein job combining parts of the two different monikers. As much as I like the sound of T-Mint (makes me thirsty for herbal tea), I always assumed that one of the names would prevail, and the other would die. In my Magenta-colored brain, clearly T-Mobile was the best choice of the two. Its brand has become the cool kid of all the carriers, and is making moves that the other major network operators can only poorly imitate. But, that’s not going to happen either. At least, that’s what YouTube channel, TK Tech News claims.

The channel’s sources – who seemingly know the ins and outs of the deal – claim that the company will take on the parent company’s name. SoftBank will buy T-Mobile, and merge it with Sprint to create its own US presence – SoftBank USA. If true, it would see the brand we know and love disappearing, presumably along with the Magenta livery. On the plus side, John Legere is heavily touted as being the number 1 choice for the CEO role of this new company. News we’ve heard repeated many times in the past.

But before we get ahead of ourselves, and cry ourselves to sleep at the disappearance of our favorite brand, there’s still the hurdle that is the Department of Justice. It could still seek to block this merger on anti-competitive grounds. Something – we know – it has done in the past when AT&T tried to buy out the company in 2011. That said, it is worth noting that this isn’t exactly the same. If AT&T had been successful, it would have created a huge monopolizing carrier. It would have – at the time – been the only major GSM network operator, with both VZW and Sprint using CDMA. It would also have made the distance between the #1 and #3 carrier even greater, making the market much less competitive.

This time out, it’s very different. And that’s perhaps why the DoJ won’t be as strong in its actions. If Sprint and T-Mobile do join forces, in terms of subscriber bases, it’d create a carrier that virtually equals both AT&T and Verizon. There would be three fairly evenly matched carriers. And that’s good for competition.

As much as we hate hearing about it, it very much sounds like this deal is happening. For those of you dead against the idea, there’s still the regulatory bodies to hope on. FCC and DoJ disapproval has been noted in the past, and shouldn’t be ignored. But for the mean time, it’s hard to carry on as if nothing’s going on. Because, clearly, something is.

What are your predictions for this proposed merger? Do you think SoftBank will get its way and push the deal through? Or will the regulatory hurdles trip the Japanese carrier up?

Source: YouTube

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  • envious684

    I think its a bit to early to be basing your decisions on rumors, I think people should wait for the official details so we know what actually is going to happen and what they plan on doing, no point in making a fuss over rumors.
    This is a bit reassuring
    http://i.imgur.com/AWYoCh0.jpg
    Here’s what a combined t mobile and sprint would look like in terms of spectrum
    http://www.fiercewireless.com/special-reports/what-would-combined-sprint-and-t-mobile-look

  • haru280
  • Jesse James

    They should change the name, The names Sprint and T-Mobile have long be associated with second rate wireless carriers.

    • josephsinger

      I beg your pardon, but T-Mobile is one of the biggest mobile operators in the *world*. Not only are they the biggest operator in Germany, but they have several operations elsewhere in Europe. I’m not sure where you’re getting “second rate.” You likely think Vodafone is a second rate carrier as well, eh? Or maybe you’ve never heard of Vodafone. You seem to think that mobile telephony is only the USA.

  • Patrick

    Not entirely relevant, but could someone elaborate on how the new CDMA and GSM carrier would combine networks?

    • Willie D

      Sprint Network Vision base stations can support multiple technologies, you can run them side by side, sharing spectrum. However, it would be smarter to deploy HSPA+ as all CDMA carriers worldwide have adopted it in the path for LTE unlike Verizon, Sprint and USCC.

  • EmeryE100

    No more changes in the name! I started with ‘Aerial’ way back when. Then VoiceStream bought Aerial and Omnipoint, so we became ‘VoiceStream’. The DT bought Voicestream and we became ‘T-Mobile’. Enough is Enough!

    • Michael

      PowerTel was good too before Voice stream purchased it.

  • SteveD

    The elephant in the room that I haven’t seen discussed is what happens to companies that are acquired by Sprint..
    They take the customers.. They take the spectrum.. They decom the equipment and fire the employees. That’s not something I’m looking forward to going through again.

  • Michael

    It should be noted that yes most of those here hate or depise sprint for one reason or another. Sprint that was once , the same company that bought Nextel , Is no longer that same company. And actually I had a very pleasant experience with sprint for the last two years before switching to T-Mobile. My only complaint with sprint was switching to T-mobile saved me fifteen dollars a month. if the two companys combined I truly believe that once the technical issues of sprints cdma network vs T-mobiles gsm network were worked out I think It would result in much better LTE coverage which we all really do want.

    • achusaysblessyou

      I think the CDMA + GSM network issues will be resolved relatively easy. Since LTE is a GSM technology and Sprint’s CDMA network is only being used for voice, once they implement VoLTE, they should be able to switch their networks to use the same bands. That’s my take on it, but as always, the devil’s in the details.

  • ChitChatCat

    Just because the corporate entity is called “Softbank USA” doesn’t mean that the Sprint or T-Mobile brands will die. Perhaps, eventually. See: EE in the UK.

    • UMA_Fan

      Good point. The Softbank brand may appear on the back end. Sort of like a Rim/Blackberry situation.

  • Derrick McClean

    This petition sums up my thoughts, having a merger would not improve network quality much for either carrier. Much of the network overlaps with each other, Sprint only has coverage in a small amount of the US where T-Mobile doesn’t, and vice-versa.

    A merger/buy-out would only cause a monopoly of either CDMA or GSM, as Sprint+T-Mobile would have to become one or the other, leaving the 3rd carrier to become the monopoly. It would also cause a ton of job loss. (ie, if Sprint+T-Mobile becomes CDMA, AT&T will be the GSM monopoly, if they become GSM, Verizon will become the CDMA monopoly.)

    Sign this petition please!
    https://petitions.whitehouse.gov/petition/not-allow-softbanksprint-buy-andor-merge-t-mobile-it-will-create-job-loss-and-less-competition/fgMjkRvY

    • PMB01

      That’s not really true. They’d have to leverage both GSM and CDMA for awhile to accommodate each of their customers on older devices (kind of like the Sprint/Nextel merger). They’d set a date and notify customers on old devices to upgrade by then or not have service. Everyone is moving to LTE and VoLTE is starting to spread, which will eventually make the 3G GSM/CDMA networks unnecessary. While it might not be the case right now, GSM and CDMA will be a thing of the past in the US in but a few years (at least for the Big 4). By that time, VoLTE will be widespread enough to make having a GSM or CDMA monopoly irrelevant.

      I do hope they continue expanding the coverage area, regardless of what happens.

  • superg05

    Why do you keep saying it is good for competition you sound like a corporate plant less competition is never going to be good for the consumer especially not in the US not even in your far away country of England we already pay more per capita then most western countries for everything

  • Jon

    I’ve said this before but this needs to happen. If T-Mobile is to be purchased it should be by another cellular company, not Dish, not Comcast or whoever else. Verizon and AT&T are pulling in the big bucks leaving Sprint and T-Mobile to fight for table scraps. There’s really only so much growth before either Sprint or T-Mobile would hit a wall. It would just be customers jumping from one company to another. Verizon and AT&T have unlimited funds it seems and like to hog up spectrum and resources leaving little for anyone else. A combined Sprint and T-Mobile should become a force to be reckoned with, just get rid of Hesse and his clowns and put Legere and his crew in there to fix the mess that Sprint has become. If done right it would give Verizon and AT&T sleep apnea. They wouldn’t sleep right knowing there’s another heavy hitter in town.

  • Sun-Ying Wong

    I am all for T-Mobile and Sprint turning into SoftBank USA….

  • IamDefiler

    SprinT-Mobile…Done.

    • DurteeDee

      NexTmobile the best name they are not using

  • PAUL FONTAINE

    Tmobile is smart! This is all a song and dance for Tmobile! They’re drawing sprint in just like they did ATT! They knew all along the DOJ would never approve of the merger! They did it because of the capital and bandwidth they would gain when the DOJ denied the merger fearing a monopoly.This allowed them to gobble up Metro PCS and take over their airwaves rollout the LTE and buy up $2billion in airwaves from Verizon. I believe they are calling the same play again! It was 4th and long before with ATT and they hit the Hail Mary, I think they are doing the same here. By ATT paying them out the $2bilion they increased their the business value exponentially and they are doing it again! If worse come to worse they sell the company they don’t want. But if they hit the bomb again they move into position to compete on a national level with Verizon and ATT for real! And they had to do nothing but stand back at watch ATT and Sprint shoot themselves in the head like stupids!

    • bronxboi

      You may have a surprise in store for you. The likelihood has actually increased and I am sure Son has some solution to the fourth carrier problem.

      • PAUL FONTAINE

        Think your in for a surprise! Cause Son has already done a preliminary run at Tmobile and the DOJ in not so many words said no, it’s not gonna happen! We will see! Like I said if it doesn’t work out Tmobile goes to Sprint and DT gets rid of a company that it doesn’t want but doubled it in value in one years time or Sprint gets denied and now Tmobile nailed the the hail Mary again and is poised to become the number two carrier when it has more capital and can steal more clients with the uncarrier model! Let it marinate!

  • Chris

    This name wouldn’t surprise me at all. The CEO of Softbank wanted a presence in the US, which is part of the reason he purchase Sprint. Now he has an excuse to rename the company and really get a foothold in the US.

  • Commob

    I personally like Sprintmo.