With The AT&T Deal On The Rocks, Where Does T-Mobile Go From Here?

While we’re excited by the news that AT&T’s proposed acquisition of T-Mobile looks all but dead, I’m fearful that T-Mobile’s darkest days may still be ahead. While analysts, press, bloggers and the like all predict this deal will now just drag on until AT&T decides to finally throw in the towel, T-Mobile has to suffer the consequences of such actions.

Given the news that AT&T is prepared to offer even more concessions in order to appease the Department of Justice, the company seems convinced it can still push this deal through, all while dragging T-Mobile through the mud. Morale, marketing and continued attempts at customer gains are thrown into the wind as T-Mobile still is seen as kowtowing to AT&T’s whim until the very last day. If AT&T promises to fight until the DOJ renders a decision, we’re talking at least the end of February into March at the earliest before we could see AT&T pull out altogether. That is unless AT&T decides not to fight the DOJ and give up before then.  However, its recent language leads us to believe otherwise. At this point, AT&T has to wait for the FCC to reply to its request to withdraw the application. The FCC can respond in one of three ways:

• The FCC can allow AT&T and Deutsche Telekom to withdraw their application   without prejudice allowing the companies to refile their application at any time. This is the most likely scenario.

• The FCC can allow the proceeding to end with prejudice, meaning the companies would be unable to resubmit their applications later. This would effectively kill the deal as AT&T would require FCC approval to transfer spectrum from T-Mobile to its own network.

• The FCC can go forward with its decision to hold a hearing and send the case to an administrative law judge thereby denying the petition to remove their applications. The hearing itself would begin after the Department of Justice antitrust lawsuit concludes. Regardless of the decision by the FCC, public interest groups are requesting the FCC publish its findings in order to determine how the FCC came to its decision to request a hearing.

The FCC decision could spell the end for the AT&T-T-Mobile deal before the Department of Justice case even begins. On top of the FCC response, the next court hearing for AT&T-T-Mobile is November 30th in front of Judge Huvelle where AT&T could present its new proposal to sell off as much as 40% of T-Mobile’s assets in an effort to appease the Justice Department. How or if Judge Huvelle will address the FCC decision to hold an administrative hearing and will it affect her expedited schedule for the case remain to be seen. Along with the Judge Huvelle update, November 30th marks the FCC’s monthly meeting. Though AT&T isn’t on the agenda for the day, it’s likely it will come up in some capacity, at the very least after the meeting is over when remarks are made to the press.

November 30th aside, let’s look at another proposal a number of you like to consider. The Department of Justice language has indicated that it wants to keep a four pony race going in the wireless industry, all but eliminating a potential buyout by Sprint as many of you suggest would be the next logical step. Not to mention Sprint has to finalize their Clearwire, Lightsquared and LTE plans before even attempting to come up with enough cash to make Deutsche Telekom a serious offer. DT knows it will likely never see another bid as high as $39 billion, but I don’t think it will accept the first offer once AT&T withdraws its bid either. Sprint may not be able to meet DT’s terms, not to mention have enough cash to continue its own network buildout, all while avoiding the the nightmares that were endured due to incompatible networks with Nextel.

Moving on, we’d be remiss if we didn’t return to our earlier statement regarding the possibility that T-Mobile’s darkest days still lay ahead. Without a potential buyer, plans to further build up the network beyond the next two years or opportunities for massive customer gain, T-Mobile still needs one hell of a plan to compete. It’s likely, in fact it’s almost a certainty, that will only happen with another buyer, be it a private equity group, cable company or an overseas telecom carrier making a play. A buyer will have to be willing to not only meet Deutsche Telekom’s asking price, but also throw in enough money to raise T-Mobile’s profile and enhance its network. That’s a tall order, even for companies with plenty of cash on hand.

T-Mobile’s biggest hopes lie with becoming a scrappy competitor in the value market, putting the grind on companies like Virgin Mobile, MetroPCS, Leap, Cricket and, to some extent, Sprint. If T-Mobile is left standing on its own, it will, as some have predicted, implement a “Plan B” alternative and fight harder for the lower end of the market. This market is currently a stronghold for the likes of Metro, Boost Mobile, Virgin Mobile, Leap and even Sprint in the form of value pricing and “unlimited data.”. T- Mobile could emerge from this deal as a national player in a value market with a super fast network enhanced by acquired assets from an AT&T deal breakup and work with a revitalized focus on capturing a larger share of the prepaid market.

If the deal fails, MetroPCS and Leap lose an opportunity to enhance their own networks as they were said to be in talks with AT&T to acquire divested T-Mobile spectrum. However, MetroPCS has gone on record stating it is not interested in transitioning into a national carrier. AT&T’s failure to close this deal will ensure T-Mobile begins to look at markets controlled by the likes of MetroPCS and turn its attention in that direction. In effect, the collapse of this deal is worse for MetroPCS, Sprint and Leap than the passage of it. If the deal did indeed pass, the market for value customers could increase exponentially as T-Mobile customers look for alternatives rather than sticking with AT&T’s already high-price monthly rate plans. Those customers could flock to lower- priced carriers in the hopes of maintaining T-Mobile-level monthly pricing.

The biggest winner from all of this will undoubtedly be Verizon which will continue its strategy of maintaining what is arguably the nation’s most reliable network while all of the companies involved in this deal try and salvage the remnants. AT&T, who claims to be in quite a “spot” and needs spectrum immediately, will not only lose the opportunity to gain T-Mobile’s spectrum but it will also be forced to hand some over as per the agreed upon breakup fee.

Shifting gears again, we need to touch base on the elephant in the room…the lack of the iPhone on T-Mobile’s network as it still leaves them as odd man out in a four pony race. T-Mobile has thrown its lot in with Android and for good reason, but the lack of an iPhone is still hurting its image even if it isn’t drastically hurting its customer gains. If T-Mobile were to suddenly gain the iPhone on its network it would help the image, but it wouldn’t suddenly turn around the company’s fortunes. While a number of reasons have been floated as to why T-Mobile isn’t carrying the iPhone, one of the reasons being floated is T-Mobile isn’t seen as a safe bet and with Apple requiring the manufacturing of a specialized chip inside iPhone for T-Mobile’s bands, they clearly aren’t producing it.

T-Mobile employees and customers deserve an end to this AT&T nightmare, in one direction or another. For those of you who opposed the merger right from the get go or jumped on the bandwagon eventually, the deal finally appears to be dwindling down and most analysts give it a slim chance at best to succeed. That’s the good news. The bad news is that T-Mobile’s fortunes are still heading in the wrong direction and while the AT&T deal drags on to the bitter end, the company continues to operate like it’s an AT&T pawn.

It’s the end of the Thanksgiving weekend and we’re thankful that the AT&T nightmare looks less likely than ever but, as T-Mobile fans, employees and customers, we’re not out of the woods yet. There is still a long, dark road ahead and we can only hope that T-Mobile finds a bright shining light to guide us through.

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  • Anonymous

    well said…

    • Mark Hennessey

      I always thought of T-Mo as the “value” carrier already. 

      You’d think someone at AT&T would realize that this deal is never going to happen…. but I wonder if they are going to play it out to soften the breakup fees they have to pay to DT?

  • Anonymous

    wonderful post David… Interesting perspective. Thank you

  • Alex Dominguez805

    Tmobile its losing all of its national retail accounts like best buy and radio shack, soon walmart and sams club will drop them too as well as wireless advocates, target and staples.

    Looks very grim.

    • Anonymous

      they’ll gain them back they only lost them because of the merger deal in the first place.

    • Littlesis1774

      They lost Costco as well. I went to Costco recently they had no T-mobile on wireless counter just Verizon and AT&T

  • Anonymous

    Everyone brings up the Google buy, but it’s a stretch.  One of the CFO’s of DT has said recently in the event of the merger not going through DT would immediately focus on getting LTE going for T-Mobile USA.  He even went as far as to say that they don’t LOSE money on T-Mobile USA and implied that it’s not like they are in a major rush to sell it.  I think a very likely and logical scenario is a partnership with Dish Network.  They haven been itching to deploy a nationwide LTE-Advanced network and they just need $600 million in financing.  Part of the break-up fee could go to that.  This could also be the reason if you look back to the companies opposing the merger, Dish Network was one of them.

    • Anonymous

      Can you please post your source? I would like to read that statement from DT.

  • Anonymous

    This is a great post, David. Thanks!

  • Also we dont know the full language of the breakup clause which might allow at&t to get away with less then the 4 bil if tmobile losses to much value or at&t is required to get rid of  to much to make the deal viable.

  • Anonymous

    Sounds like a att supporter wrote that story.

    • If that was sarcasm, it was confusing as hell.

  • T-Mobile’s Plan to Success
    1. Get the iPhone
    2. Market it as “The best iPhone plan” -value plan, $49.00 per line or something.
    3. Use the breakup fee money to make a LTE network
    Problem Solved!!!

    • Luke

      The only problem with that is that
      1) It’d probably cost them a lot to get Apple to bring the iPhone here,
      2) An unlimited talk/data plan for $49 probably isn’t going to bring in a whole lot of profit.

      • I see your point, however T-Mobile has the “value plan” right now. for $49.99 per line for 2 lines, however that has no phone subsidenceing, you put a down payment and pay around a extra $15 a month. I think David wrote about it.  They can use the money from the break up deal to help fund that. Key here is cheapest iPhone plan.

        • Erik Neu

          The other angle to consider would be whether Apple would be supportive of that. Apple likes high margins, hates discounting. Maybe that is also part of the reason they haven’t been eager to give TMo the iPhone to-date.

        • Littlesis1774

          They will if DT don’t pull out right away. I know that DT wants out but they can’t just leaves us in this mess

    • Anonymous

      Couple of things here and there… IPhone on the network great add in a trade in plan for those with incompatible devices and thats fine.

      2. no way would apple let the iPhone become a “budget” device

      3. HSPA+ > LTE…. HSPA+ improves everyones speeds, HSPA+ doesn’t suck battery as badly… 

    • The “breakup fee” will go to DT.  DT will not use it in the US since they want out.  They will use it for DT’s operation in Europe.  They have stated that they are not going to invest anymore in T-Mobile USA’s infrastructure.

  • hmmm… nobody really knows where this will go even as Att looks as if its failing in this deal.  I really hope either DT changes its mind and decides to put its ALL into T-Mobile America or sell it to somebody who wishes to keep the Network completely intact. I don’t like seeing my Magenta Flounder… = /

  • Anonymous

    good write up dave!

  • BP

    T-Mobile has joined the 400,000 in foster care waiting to be adopted.

  • My Plan for T-Mobile:
    1. Get rid of the pink – image is everything. T-Mobile seems to market to teenage girls.
    2. With one of the fastest networks, they should play that up.
    3. DT should get out of the way and spin off TMO USA. It’s profitable, so just sell off the stock.
    4. GET THE iPHONE once and for all.
    5. Use the AT&T breakup money and buy Dish Network

    • No wayy they should get rid of the Magenta, it effing rules. can’t help if people follow stereotypes I guess tho.

    • Keep the magenta. It’s always been a part of T-Mobile. And the iPhone isn’t a big deal to me but unfortunately, society likes to be trendy. So T-Mobile should get it to shut people like this up. And buy Dish Network? Why?!

      • You forget that DT wants out of the US.  Whatever company it becomes will not be T-Mobile.

        • Anonymous

          “A rose by any other name would still smell as sweet” Heart of t-mobile is what its about ppl came over from voicestream who cares whats its called to all us longterm users of the network it will still be t-mo/voicestream etc so long as the only thing that changes is the logo.

        • I haven’t forgotten at all. I’m simply saying that the color doesn’t necessarily need to change. It probably will seeing as how it is a trademarked color (oddly enough), but there’s always licensing.

          I agree with JBrowne1012. It’s really the people that are the spirit of T-Mobile. If they keep Carly, build the network out like they’re supposed to, and bring their customer service back to where it used to be, then I say, SPIN US OFF DT!

    • Anonymous

      Is dish network really worth $1- $3 billion dollars?

    • Yeah, they should use complimentary colors  like blue and orange… no that couldn’t be.  Those are lame AT&Tingular colors.

    • Erik Neu

      Also: belatedly stake out the position as the most ethical carrier. Examples: no locked bootloaders, no carrier bloatware, generic Android to the greatest extent possible, keep offering value but especially find ways to simplify billing. Throw some funding at Android modders. Go out on a limb and make some guarantees regarding Android upgrades.

      Then advertise in a way that supports that image. The same way Verizon hammered home the message “we have the best network”, Tmo should hammer home the idea “we are the only carrier being transparent”.

  • Youngt82

    Once again lets go Gooogle lol :)

    • connyay

      Because google bought motorola they can not buy a carrier. It is illegal to be a cell phone manufacture and a cell phone carrier. 

      Sooo… They would have to sell off motorola before they could get in the carrier game.

      • Well that is one stupid law

      • Anonymous

        They only bought motorola for the patents.

  • prawnparty

    No. Once again Mcdonalds should buy Tmobile. Call it McMobile

    • Frank Jacobs

      No no no. Taco Bell should buy them and call them…well…Taco Bell.

      • Taco Bell is already a phone company.  It’s what people in Texas call Southwestern Bell.  Southwestern Bell is now AT&T.

    • You could put a cell tower on top of each of the golden arches. No one would ever complain about cell coverage again!!!

      • Anonymous

        Except t-mobile would be broke for maybe 20 years lol there are so many mcdonalds and towers aren’t cheap.

        • Well maybe just antennas. They would replace the T-Jingle with, the I’m Lovin it tune.

        • Wilma Flintstone

          LOL!!!  I’m lovin this idea LOL!!!

  • Bill

    David I think you are spot on about TMobile going to the value market.  The funny part is they could sell their hard ware to AT&T and rent/lease from them.   I think its one of the ideas floating around.

    People either love or hate the Iphone, I read somewhere that it controls about 27% of the market, you cannot compete equally  missing that percent of people.  

    I signed up with Verizon yesterday, we ended up with Iphones, but that was just personal preference, that Razor, and high def. Samsung phone we something to see.  Person that took my order said I was the third TMobile customer he had that day.

    I am leaving because of coverage.   Max of 2 bars and edge only where I live.  Wifi is nice, but sometimes your outside, at the neighbors, or walking the dog.  Joined TMobile in 2003, its really not the same anymore, I do hope they can survive.

  • Nobody

    If the deal dies, perhaps a rollout of 3G PCS could put TMO back in the game for those with an iphone looking for an alternative. Get rid of 2G and get aggressive in the game. The real question is if DT is gonna roll over when this deal dies.

    • No company that has thousands of 2G customers is going to shut down their 2G service.

  • TMoFan99

    This is was T-mobile needs to do:

    1. Build up the network.
    The main thing killing T-mobile is their crappy service! With the cash & spectrum coming from AT&T when (or if) the deal fails, they will have enough to help improve. I know it all of the cash goes to DT, but they need to invest in something that can still be great! They still have a chance! Although the HSPA+ 42mbps is nice, they need to start looking into LTE. Although the speeds are (almost) comparable, they need to get it in gear and crank out some LTE. Don’t relive history again – they saw what happened when they entered the 3G game late and they don’t want to do that again.2. Get the iPhone.
    The iPhone is what’s killing T-mobile (and me). When apple is looks at T-mobile, they see a unstable company that they don’t know what will really happen to it later down the road. Plus T-mobile’s 3G spectrum is a little funky, so why would apple develop for them? So after the deal, T-mobile can’t get tangled up in any more huge deals. This would show apple they are a (some-what) stable company and maybe they’ll develop a iPhone for them. (Is  this video a fake? Check this video out: http://www.youtube.com/watch?v=Jf8C-2tDDqE) Although, as posted on numerous other blog posts, the addition to the iPhone in the T-mobile lineup wouldn’t turn the company around drastically. It would for sure keep current customers as well as gain some with their awesome pricing.
    3. Keep the awesome, affordable plans.The plans are the best thing that T-mobile has to offer, and quite frankly the only reason why I’m on it. They have super-competitive plans that I love. They need to keep the plans, donlt raise the plans like ole’ big red because of the LTE buildout.There you have it. That should be the game plan. However, knowing DT, they will still probably bw greedy and see how much money they could squeeze out of selling T-mobile. There is STILL a chance for T-mobile. They have things going for it, such as their plans and national coverage, as a good company. They need to get it together as a company and make a “Plan B”. Right now we really don’t see one, so step up your game. Sorry for my ranting… Hopefully someone from T-mobile sees it :)

    • ConspiracyTheory

      This is what tmobile needs to do:


  • TMoFan99

    This is was T-mobile needs to do:

    1. Build up the network.
    The main thing killing T-mobile is their crappy service! With the cash & spectrum coming from AT&T when (or if) the deal fails, they will have enough to help improve. I know it all of the cash goes to DT, but they need to invest in something that can still be great! They still have a chance! Although the HSPA+ 42mbps is nice, they need to start looking into LTE. Although the speeds are (almost) comparable, they need to get it in gear and crank out some LTE. Don’t relive history again – they saw what happened when they entered the 3G game late and they don’t want to do that again.2. Get the iPhone.
    The iPhone is what’s killing T-mobile (and me). When apple is looks at T-mobile, they see a unstable company that they don’t know what will really happen to it later down the road. Plus T-mobile’s 3G spectrum is a little funky, so why would apple develop for them? So after the deal, T-mobile can’t get tangled up in any more huge deals. This would show apple they are a (some-what) stable company and maybe they’ll develop a iPhone for them. Although, as posted on numerous other blog posts, the addition to the iPhone in the T-mobile lineup wouldn’t turn the company around drastically. It would for sure keep current customers as well as gain some with their awesome pricing.
    3. Keep the awesome, affordable plans.The plans are the best thing that T-mobile has to offer, and quite frankly the only reason why I’m on it. They have super-competitive plans that I love. They need to keep the plans, donlt raise the plans like ole’ big red because of the LTE buildout.There you have it. That should be the game plan. However, knowing DT, they will still probably bw greedy and see how much money they could squeeze out of selling T-mobile. There is STILL a chance for T-mobile. They have things going for it, such as their plans and national coverage, as a good company. They need to get it together as a company and make a “Plan B”. Right now we really don’t see one, so step up your game. Sorry for my ranting… Hopefully someone from T-mobile sees it :)

  • Guest

    T-mobile’s path to success: price traditional voice/data plans through the roof and adopt the republic wireless wifi calling/data plan (which republic wireless stole from them, no?)

    * $20 a month, “unlimited” (a la republic wireless)
    * Bring your own phone or buy unlocked 
    * Partner with Google – Google sells the phones
    * All prepaid
    * Don’t even think about LTE, continue the HSPA+ rollout (it’s plenty fast)
    * Turnover all phones to HSPA+ within a year (for spectrum efficiency)
    * Partner / build a dense, widespread wifi hotspot network

    Basically, become a nationwide value carrier, reduce voice overhead while replacing it with wifi and HSPA+, focus the hell out of data.

    That, along with spectrum and roaming agreements from AT&T could be extremely compelling. 

  • Great post David!

  • TMoFan

    To the contrary, I think T-Mobile’s best days are ahead of it now that we won’t get gobbled up by a horrible company who overpays to take out a competitor instead of upgrading their own shoddy network.

    Despite what some people think it would make no sense at all for DT to dismantle the network and sell the pieces. T-Mobile has value that is attractive. It has a national network in place, no debt and brings in a profit. Any company that is willing could turn things around. A new entrant chomping on the bit to get into the wireless business won’t have to start from the bottom up. If T-Mobile has investment for LTE and proper marketing the downward trend will reverse itself.

    I think we’ll see either an outright sale to another company or a partnership, but regardless I believe a national carrier will be saved and the Twin Bells won’t get what they want. They want T-Mobile and Sprint out of the picture. I’ll repeat myself: DT were in talks with five companies, three of whom we know nothing about. So there is interest out there. I can see DT reaching out to these companies when this deal is officially dead.

    If at&t/DT has any shred of decency they will recognize that this sellout is dead and end it. That way DT could pursue another deal and everyone can move on from this. Unfortunately I see at&t being vindictive because they didn’t get their way further harming T-Mobile’s ability to compete. I hope I’m wrong; we can’t go through another year like this.

    Me? Well I’ve been here since the Voicestream days and have no intention of going anywhere. My service is great and I still love my G2. If that dark day does happen I’ll go down with the ship then take my business elsewhere.

    Huge thanks David for staying on top of all this!

    • Anonymous

      Well said

      • Wdj1967

        Well put!

    • Tbyrne

      Perfectly stated!


    somebody will step up.

    somebody better.

  • Anonymous

    Bring back myfaves and t-mobile can regenerate all their lost sales. let t-mobile get the Galaxy nexus first and the Galaxy S3 HD give all those other people who like iOS a compatible 4G iPad and iPhone 5 make a better android powered sidekick that run the newest version of sense with the hardware of a galaxy S3 

    • Anonymous

      Really?  The loss of MyFavs was causing all their churn?  Give me a break.  Alternatively they should be advertising things like Wifi Calling a lot more in a simple effective and useful way and make consumers THINK it’s something they need kind of like how apple does.  Also driving the ‘only at T-Mobile’ message would do wonders.

  • The longer this thing drones on the less attractive T-Mobile USA’s assets become.  If the AT&T deal fails there’s not another entity whether it’s a cable company, another foreign investor such as Vodafone or an investment group no one’s going to pony up $39B for T-Mobile USA.

    • Jack

      I am pretty sure that’s what the article said. But thanks for reposting, because I didn’t get it the first time. :)

    • Anonymous

      Pocket change for Apple.

      • All that know me knows i never want how much i dislike att but if apple buys tmobile. I’m running to ATT crying all the way

  • Anonymous

    Hopefully option 2 for FCC is the one they go with

    Bring back myfaves.

    Get the iPhone to all those who have iPhones currently on the network at a discount

    Sell the Galaxy Nexus in the store at $149 and get the Galaxy S3 HD 

  • T-mobile needs to:
    1. Sell unlimited data plans (no data throttling) to compete with sprint.
    2. Get an exclusive on the upcoming Nokia u.s. flagship windows phone.
    3. Get LTE up and running.

    • Vinny

      T-Mobile doesn’t need LTE, they have the fastest HSPA+ Network that is much better on battery life and just as fast as LTE. In many areas with the proper phones the T-Mobile HSPA+ Network is faster then Verizon’s and AT&T’s LTE Network. Build that Network up and use that. I have a Verizon phone with LTE and I have T-Mobile with HSPA+, I prefer my T-Mobile phone with their HSPA+ NEtwork. Battery last all day, speed is just as fast and the phone can go anywhere in the world and run on other networks with just the change of the sim card. HSPA+ is IMO a better Network. Just work on what you have, educate the public about what exactly the difference is. Bottom line is this, doesn’t matter what it’s called, it’s the speed and battery life that counts. T-Mobile has the makings of a kick butt Network if they only educated the public. Advertise the right way, that is the answer.

      • Anonymous

        Well said.

    • CRT24

      Sprint has already started charging overage on their stand alone data plans and their data plans that are bundled with voice services are probably not far behind. From what I have heard about about the speed of sprints “4g”, it is like you are throttled from the beginning and if you are on 3g like in my market its even worse, but you still pay that 10.00 4g charge regardless.

      • Littlesis1774

         I think that is for their hotspots. They are not charging overages for their smartphones

    • ItsFreezingInHouston

      Windows phones suck. 70% of the customers we sell windows devices to, regret getting it later. We have had so many customer come in later to get their devices exchanged for android.Android is the premium choice.
      -we don’t need lte. Hspa+ 180mbps will do the trick without having to invest crazy money.
      – yess !! Tmobile needs an unlimited data. With sprint advertising it’s unlimited data plan as the super hero. Tmobile needs to undercut sprints price for unlimited everything and I am talking about a classic plan, I know the value plan is cheaper.
      – Get the next iPhone5 before any other carrier does, atleast a month before others get and market it as the coming of Jesus.

      • whiskers

        Speak for yourself , all the people i’m around love their WM phones and it IS a much smoother OS than Android with no lagging issues with less processing power needed to get the job done.
        Keep dreaming about the next iphone because T-Mobile is not ready to put up the real cash and agreements Apple wants to have or they would have the iphone on their network already. T-Mobile DT can make it happen here in the USA if they Want To . But they don’t care anymore , they want out of the US market.
        Just look at what Sprint had to pony up just to get the iphone on their network , and their Wimax 3G/4G is slow and spotty. No wonder they offer unlimited,lol.

  • Anonymous

    You forgot about rumors that Google would be interested if the AT&T acquisition fell through.

    • I didn’t include them because I don’t think Google is a serious contender. There is no way after all of this antitrust mess comes into play that Google, having just purchased Motorola will be allowed to purchase a national wireless carrier.

      • Boss man super swag

        and Google wouldn’t put themselves in a potentially challenged position as the Android provider. Wouldn’t want to pick favorites, Google wants every carrier to buyer their phones :)

        • Anonymous

          Google or Apple buying a US cell provider isn’t going to stop the carriers from buying their phones.

        • Wilma Flintstone

          Uh, yeah, it kinda would.  If Google buys a carrier, then the competitors would either move to another OS or the carrier that they chose would be exclusive.

  • Anonymous

    Tmo is still very much alive, it just needs a kick in the ass with money.  Yes its going to take some money to bring it up to par with the big boys, but Tmobile has a very good group of workers who are willing to put in the hours.  I think if the right person buys Tmobile and manages it like it should be, it can once again rise and take on the big boys.  I mean even with all the ATT crap, Tmobile has still been able to add customers. There is still hope, we just need the right person to help the ole girl along.  Our network is already fast, we just need more towers.

  • Vim

    Apple demands huge phone subsidies from its carrier partners on the order of $450-$500 per phone, as per the recent $20 billion contract with Sprint.  T-Mobile US has been moving in the opposite direction, pushing as many customers as possible onto Value plans with no phone subsidies.  It’s also refused to give its existing customers who want to keep their subsidized plans any special phone discount deals to stay that go beyond the standard $300 subsidy.   T-Mobile is also the only national carrier not taking part in Amazon’s all phones for a penny Black Friday week sale.  It’s pretty clear that T-Mobile and Apple appear to have highly conflicting business models at the moment.  I don’t see how T-Mobile US can make a deal to carry the iphone without either T-Mobile or Apple being willing to change their business model.

  • Vim

    Best case scenario for T-Mobile US is probably a Vodafone buyout.   Vodafone could then allow Verizon to finally buy out its 45% share of Verizon Wireless and pump that money into T-Mobile.  Vodafone would then have a US arm that it controls while Verizon would have full ownership of Verizon Wireless, making both companies happy.

    • Wandyp

      If I am a stock holder with Vodafone and I am getting returns of 45% of 80 million subscribers, of a company that seems to be the only winner in this mess.   I sure would not want them to dump this to go it alone in a sinking company of 30 million, invest billions to try and turn it around. Just does not seem like a smart investment.   I bet there stock would drop like a rock. 

      • Vim

        Verizon doesn’t pay out dividends for Verizon Wireless, it dumps its profits entirely back into Verizon Wireless which it fully controls.  So Vodafone stockholders aren’t getting anything from Vodafone’s investment in Verizon Wireless, and Vodafone can’t tap any of it.  Even a Verizon global roaming agreement is worthless to Vodafone since Vodafone’s customers are GSM, not CDMA. 

        • guest

          Verizon Wireless achieved organic service revenue growth of 7.1% in H1 and
          6.4% in Q2. Vodafone’s share of profits from Verizon Wireless totalled £2.5
          billion, up 11.1% year-on-year. Verizon Wireless’ net debt fell from US$9.6
          billion at 31 March 2011 to US$3.1 billion at 30 September 2011. In July,
          Verizon Wireless announced its intention to pay a dividend of US$10 billion to
          its shareholders in January 2012. Vodafone’s share of this dividend is US$4.5

        • Vim

          This will be the first dividend in 6 years, and Verizon has already said not to necessarily expect it again next year.  Apparently Verizon had to tap Verizon Wireless this year to support its own dividend since the rest of its business was flat.  Thus Vodafone as 45% owner was entitled to a cut too.  Verizon continues to reiterate its desire to buy Vodafone out, and the relationship between the two partners has historically been anything but smooth.

  • jon

    I couldn’t disagree more David. It was the uncertainty for the last 9 months that WERE the darkest days. Now that the picture is becoming more clear and certainty is setting in, tmob will only get better. The executives can start steering this company again rather than allowing at&t drag them around. And more importantly, the employees on the ground can start focusing on doing their jobs and not wonder IF they will have jobs. I very much look forward to September (at the very latest) for this to be totally over. I happen to believe DT is likely to hang onto tmob. DT worked hard to aquire Clearwire from sprint to secure a clear path to LTE. Now that tmob will have a clear path to LTE via a 6 billion dollar breakup fee from at&t, I think its likely that DT will hang onto tmob. Yeah, I know the nay sayers will scream that dt wants out. But those people don’t stop to realize, dt will say anything to get this deal past. And they do so with a ‘gun’ to their head. At&t is controlling the message here, not DT. I am still taking a wait and see attitude. I never bought into your DOOM and GLOOM blog posts before…none of your apocalyptic thoughts have come true so far, so people should take your opinions with a grain of salt. On a side note, you do a great job of reporting and keeping everyone informed of the latest breaking news. It’s just your editorials that are way off base.

    • I disagree…I’m not sure what doom and gloom posts before you are referencing as not having come true. Most of my editorials are in response to scenarios just like this one. I don’t believe the next nine months will be any easier than the next nine months. What is becoming more clear right now exactly? That the company’s future is completely uncertain? The executives will start steering the company again? Yes they wil…right into the hands of another buyer. Read any editorial by any analyst on earth and you’ll see the same thought carried throughout, DT wants out of the US market. If you won’t believe my “doom and gloom” posts as you put it, perhaps you should read the editorials from journalist or industry insider who are all saying the exact same thing, Deutsche Telekom wants out of the US market. Plain and simple.

      While I appreciate feedback, it’s helpful to have a better understanding of the situation which I’m not 100% sure you do. T-Mobile doesn’t get the breakup fee, DT does and it’s likely they won’t use that money for anything regarding T-Mobile. My “apocalyptic” thoughts have come true so far…before March when I said that T-Mobile was in need of a buyer or a drastic change in position and that happened. That came true. I said the AT&T deal was going to be a difficult sell and that came true. I’m curious as to what exactly are you saying I was wrong on. I’m sure I’ve been wrong before, but I’m not quite sure what exactly you are basing that statement on in this particular regard. I never ever say I’m absolutely right and I’m happy to be wrong. In fact this site is better that I’m not always right because I’m not perfect.

      You say things seem clearer now than they did nine months ago? I think you might be the only person who thinks like that. It was in fact clearer when we believed AT&T had the political clout to make this happen and we believed T-Mobile was heading right into Ma Bell’s bosom. Now, with the deal falling apart we have no idea what the next step is for T-Mobile. I’m certainly one amongst oh I don’t know…almost everyone else posting comments here who believe another buyer is going to happen.

      You do an excellent job of feedback but I’m afraid a number of your viewpoints are off base . When did Deutsche Telekom acquire Clearwire btw? The $6 billion dollar breakup fee is only $3 billion in cash and the rest is in spectrum and other assets. And again, that money DOES NOT go to T-Mobile, it goes to the parent company. More importantly, the extent of how much of that fee will actually be paid out is unknown considering we don’t know all of the terms regarding how the deal is structured. Regarding your statements on a clear path to LTE, you should find the posts we did in January when Philip Humm and T-Mobile executives stood up on stage and said in no uncertain terms that T-Mobile didn’t have a clear path to LTE outside of a few major urban areas at which point they would rely solely on HSPA+. So again, what factual evidence are you basing that statement on?

      Honestly, I think a little more research might help you understand my point of view. You seem to be missing some key points which support my statements and posts. I encourage encourage everyone to call my posst out for inaccuracies but just as you insist I work harder, you too should make sure your own argument isn’t full of the same gaping holes.

      I don’t think anyone is reading this and taking it as fact. They are reading it as my opinion and they are welcome to disagree. That’s what an editorial often is…an opinion. Hence the industry term “op-ed.”

      • jon

        David, you know you are very pessimistic with regard to tmobile. From job loss stories to lack of the idevice stories (which you somehow manage to fit the iPhone into every 10th post it seems). Also, I can see how you may have misinterpreted my clearwire comment. I should have said ‘worked hard to TRY to aquire clearwire’. I am very well informed and 8have been following a possible tmobile sale for years. Half of my family’s income comes courtesy of tmob. So, I keep myself well informed. My morgage payment depends on them…I happen to believe that 6billion changes things greatly. But, obviously you won’t hear a peep from DT as to their plans until that money is in its pocket. Also, I fully understand that money goes to dt. But it is foolish to think dt will pocket 6 billion dollars
        And then drive tmobile off of a cliff. That money will be used to enhance tmob (whether that means investing in it because they plan to hang onto it or whether they use that money to lure in another buyer).
        As far as making things more clear; we have to different vantage points on this. Maybe I should have made it clear that my view is that of a spouse of an employee and not of a customer. It makes it very clear for employees. Even in a sprint purchase, tmobile employees would be needed. This at&t deal made it very difficult to determine IF you would have a job. Tmobile employees can now refocus on customers and stop looking over their shoulders for that pink slip. This should also greatly improve the customers experience.
        No offense David, you just don’t put a positive spin on anything you write. It would be different if you held a neutral position, but you give most of your post negative spin..that doesnt make me uninformed, it just makes you very pessimistic..

        • Again, you are missing this point. The deal doesn’t allow for $6 billion dollars. Period. As we understand it, the deal allows for $3 billion dollars in cash and $3 billion in assets and spectrum. Being an employee and relying on T-Mobile for income doesn’t change the nature of our dispute nor do I think it makes anyone more or less informed. You interpret these posts as negative and I write them as informative. The company has changed drastically as of late and if you want me to paint a rose colored picture just so you can think I’m not pessimistic than you and I disagree more than I believe. I love T-Mobile, it’s why I started this site and dedicate myself to it day in and day out. However, at this point my love for them is tough love because I believe they are making a number of poor decisions that has caused the company to fall from the top spot on JD Powers and end up being the subject of a takeover by a competitor. I’m sure you’ve had a situation in your life where tough love was called for. Don’t forget this is a fan site and even if a post skews negative, I’m still a fan and I’ll always write about the good. Sometimes the bad has to come out as well.

          Anyways, if you think in a Sprint purchase T-Mobile employees are needed any more than an AT&T deal than I don’t know what to say? What makes you believe that? There would still be redundancy and layoffs. Would there be more or less than with AT&T? Impossible to say. Doesn’t change the reality that a merger/takeover with Sprint would still cause job loss. That’s a given.

          I didn’t misinterpret your Clearwire comment. You wrote it improperly. You said something and now recognizing that mistake you’re telling me you wrote it wrong. Ok, if you say so.

          I love T-Mobile and anyone who thinks otherwise clearly misunderstands the very nature of this blog. Writing stories that show concerns for T-Mobile’s future is part of my job description. If they’ve leaned negative lately it’s because circumstances have dictated that style of writing and generally the comments in those posts agree. Look at the comments in this post, how many people are calling me wrong? How many people are telling me I’m flat out wrong?

          If you think Deutsche Telekom is going to take the money they receive from AT&T in the event the breakup fee is paid out and just throw that money into T-Mobile USA than I’ve got a bridge in San Francisco for sale. The extent to which that happens is ONLY to keep T-Mobile alive while they can work out another deal, buyer etc.

        • jon

          Sprint does not have the infrastructure to get rid tmobile employees. The technolgies are different on the engineering side and the customer care/financial care would stay intact becuase it would be impossible for Sprint to almost double its subscriber base and ‘eliminate redundancies’….in short, there are zero redundancies, except at the corporate level. It was common knowledge within tmob that with a sprint deal, all employees would be safe. Sprint rumors have been around since what 2006? So, tmobile has had to address this with employees informally several times. Also, in any other scenerio (dish network, Google, voda, etc) tmobile employees are needed.
          You are also splitting hairs on that 6 billion dollars. I am well aware of how it breaks down and I have even corrected other posters on the breakdown of 3 and 3. That simply details. You suggested dt gets the goods and tmob would be left hung out to dry. I call bs on that assesment. I repeat, DT will use that money on tmob; one way or another. It will reinvest if they keep it or use that money/spectrum/roaming deal to lure in and sweeten the deal for another buyer..

        • Guest

          This from the Wall Street Journal:

          The German firm wants to sell T-Mobile USA as it isn’t willing to
          continue making multi-billion dollar investments in a market with low
          growth prospects. The unit was late in upgrading its network and lost
          customers as a result.

          A Deutsche Telekom spokesman on Thursday declined to comment on
          potential alternatives to the transaction. The options available,
          however, could include floating the unit on the stock exchange, getting
          a new partner on board, or network-sharing deals to avoid future
          spectrum shortages.

          Credit rating firm Moody’s said Deutsche Telekom would probably prefer
          a U.S. exit if the AT&T plan fails. The company is facing
          challenges in its main European market, including large investments into
          fiber optic in Germany and turning around its Europe business, which is
          up against tough economic conditions.

        • jon

          And what’s your point? I already said I was aware the dt says they want out. I also said they will say anything AND MORE IMPORTANTLY at&t will make them say anything to get this deal through. There is a 9% stake in at&t at stake here. Of coarse dt with pound its chest and threaten to drive tmob off the cliff…who wouldn’t? All I’m saying is there is a difference in a message made by two companies desperate to get this deal done and a dt holding 6 billion dollars in its hand without at&t telling them what to say..

        • It’s an 8% stake by the way, not 9% and yes, there is a difference in that. And again, DT would NOT hold $6 billion dollars in their hand. They would hold $3 billion and the rest in spectrum and assets that would require its own set of financial investment to logistically make the new spectrum part of T-Mobile’s own network.

        • No legal department would ever allow a company to tell every employee they are safe in the event of a merger/takeover. Are you just making stuff up as you go right now? I’m not splitting hairs on the $6 billion, there is a tremendous difference between $6 billion in cash and $3 billion in cash and the rest in spectrum and other assets. That’s just simple mathematics. How can you call that splitting hairs? There is no scenario that I can envision that would allow for every T-Mobile employee to be kept. Any company worth its salt would start trimming the fat from the company they have taken over and part of that trimming is likely to happen on the retail/call center side.

          Deutsche Telekom has said and acted as though they want out of the US market and we have no reason to believe they would take any of that money and reinvest it with a desire to keep T-Mobile USA. They are more likely to only invest as to keep T-Mobile USA an attractive property to a new buyer. The value of the company has already dropped and they will not see $39 billion again, in fact they will be lucky to see any number over $30 billion.

        • jon

          Lol, no I don’t make things up. There is a reason I used the word ‘informal’…rumors of Sprint have come and gone for years and managers, like my wife, have to provide answers to concerned employees. It was common knowledge that Sprint would NEED tmobiles employees. To be specific, half of tmobiles workforce are call center employees. And tmobile let its employees know INFORMALLY that if the rumors ever came true, that Sprint would need every call center to handle doubling its subscriber base. Not only that, but tmobile had reeled off SIX JD Power awards for customer service. Sprint wouldnt dare mess with the best customer care in the industry…maybe this is where you acknowledge that being an employee can provide some details you may not know…

        • Just out of curiosity, where in this statement can I find the word “informal?”

          “Sprint does not have the infrastructure to get rid tmobile employees. The technolgies are different on the engineering side and the customer care/financial care would stay intact becuase it would be impossible for Sprint to almost double its subscriber base and ‘eliminate redundancies’….in short, there are zero redundancies, except at the corporate level. It was common knowledge within tmob that with a sprint deal, all employees would be safe”

          Yeah, I’m not finding it there. You said it as though it was fact. You said it as though someone at the highest corporate level sat the entire T-Mobile employee base down in a room and said “if Sprint buys T-Mobile, all employees are safe.” In each comment we’ve exchanged your story has changed. T-Mobile CANNOT let their employees know, even informally what will happen in the event of a deal. If they were to tell someone something verbally and that changed, neither party has any recourse. It has to be in writing, just like they let everyone know about their possible severance pay.That was approved by legal and by management and then the info was disseminated to employees. There was nothing informal about the entire process with AT&T regarding employees and their possible employment. Hearing something from a manager constitutes someone speculating and acting like they know more than they do, that doesn’t make it fact.

          I’m sure I know enough employees who keep me apprised of what the inside workings of the company to have some idea what I am talking about. Not to mention, a number of the conversations I have, are at a level far higher than customer service.

          I’m sorry to say but I’ll await your next reply and the next piece of the story that changes till the morning. Have a goodnight.

        • jon

          Dude, I can see you are just getting snarky…read my post more closely and you will see the word ‘informally’…
          I’m not sure how to communicate to you..it happened. Managers have to deal with and answer concerned employees. The best analogy I can think of off the top of my head is how they adddess employees who talk ‘union’. Of coarse the legal dept won’t let managers flat verbally bash and discourage union talk. But you bet your ass they will pull that person aside and give them the talking points as to why unions ‘don’t fit into our business model. And we prefer a one on one relationship with our employees without the interference of a third party rep.’. When a concerned employees or group asked about Sprint, tmobile had a set of talking points that included Sprint needing tmobiles infrastructure to handle doubling its subscriber base..believe it or not. I don’t care.
          Oh and yes you are correct, it is 8%..but I’m sure you have never had a typo…goodnight David.

        • Wilma Flintstone

          I got the last post.  I win :P  LOL!!!

      • Hark

        T-Mobile beat anslysts predictions just this past quarter so what are you rambling about? Now I know why T-Mobile itself hates your blog

        • Actually, they really don’t hate the blog. I talk to people in the company quite frequently and they enjoy the site. They don’t always approve of the leaks, but they certainly don’t “hate” the blog. If anything this site has become a sounding horn for feedback for them to use as they make future business decisions. That’s why the company has a social media department dedicated to watching sites exactly like this one.

          Also, beating analyst predictions doesn’t mean a company is suddenly headed for financial success. The reality is they didn’t grow…except in the prepaid market which isn’t very profitable or sustainable for a company that should be focused heavily on postpaid, an area in which they lost customers. Telling me they beat analyst expectations is irrelevant when you look at the hard numbers and see how the company is actually performing. I want T-Mobile to be a resounding success but the company needs significant help to achieve that. Why is that something people aren’t willing to accept? We can’t look at everything with blinders. Why can’t I love the company but provide tough love when trying to understand how they can turn around this mess. I’m pretty sure I can love the company and disagree with their business decisions at the same time.

        • Frank Jacobs

          Aye. Being less bad than predicted is a long way from being good.

      • Anonymous

        wow david youput a lot into that post lol

        • I thought a nice lengthy reply was warranted!

      • Dpro

        David I have to call you on the comment of Ma Bells bosom . I do not know how many times I have had to correct others here but know I have to correct you. AT&T is not Ma Bell its SBC aka a baby bell that came out of the breakup of AT&T. They owned Cingular and  bought both AT&T wireless and after that AT&T long distance. They then renamed themselves AT&T as it was a the more known and popular name than SBC. .

        The original AT&T which was Ma Bell which was called Ma Bell because it owned all the land lines in the United States and actually operated a the best land line system in the world.
        The New AT&T does not own all the land lines nor All wireless so not only is not the real AT&T but it cannot be called Ma Bell.

        Oh and both Verizon and SBC have sucked at maintaining land lines and long distance lines. Its horrible and they still have not given us Wireless like it is in Europe or Japan either.

        Oh and yes I did not want the purchase to go through either and I do agree the future does not all rosy yet for T Mobile we are still very much in a limbo state.

      • Anonymous

        Can you try and leave the really long posts to mike?

    • Anonymous

      I mean this with no disrespect at all, but I think you are very incorrect, sir.  You need to look at the big picture and have a true understanding of T-Mo’s position in the market. I don’t think you have a full understanding of what assets are available to them or how they will actually be able to use any of this stuff to get out of trouble.  I’m sure you really like T-mobile, but don’t allow yourself to be convinced that they aren’t in trouble regardless.  There is no real way for T-mobile to continue profitable as a business in the long run.  Its safe to assume that they most likely won’t be here in the next 5 – 10 years but that’s being nice, i don’t think they’ll be around for the next 3-4 realistically.  I could be wrong, but i think its safe to assume their future isn’t looking bright considering they just tried to sell themselves.

      • jon

        And you are entitled to your opinion…but only time will tell. It is relatively safe to say at&t won’t take over. And that is a huge victory for tmobile employees. Of any possible buyer, this was the worst possible scenario for tmob employees. At&t has the workforce to absorb tmobiles subscribers and give the magenta slip to former tmobile employees. In any other scenario, tmobile employees have a fighting chance to keep their livelihoods. We will see what dt does once they don’t have a muzzle. Btw, saying a company is ‘done’ simply because of a failed merger is a bit extreme. Just ask dish network…

  • guest

    Good read.

    “cow-tow” should be kowtow

  • I will buy T-Mobile………… now who’s with me?! :p

  • Wilma Flintstone

    David You made a Typo!!! >:(

    • That’s awesome, you should add in where!

      • None

        You said “encourage encourage” — but I think people can got the point and are just being picky.

        • Wilma Flintstone

          Mwuhahahahaha!!!  Got ya

      • Wilma Flintstone

        It was waayyy back in that article you wrote like a year ago.  You fixed it now though.  LOL!!!  I knew I’d get somebody with that.  This article ROCKS!!!

  • Robert Dotson

    I love T-Mobile! The sales reps are awesome! the phones are finally amazing and I love my value plan! I dislike att and Verizon… Had them both and my internet much faster with Tmobile. The hotspot is amazing! I hope att gives up before 2012….

    • PhillipinesJack

      Try calling customer service Mr. Pseudo Dotson impersonator.  They suck.  

      Better yet:  Try calling prepaid customer service.  You might need an interpreter. 

      • ItsFreezingInHouston

        I wouldn’t mind an Indian dude picking up the phone rather than Filipino. I love talking to the activations department, cuz they speak the same English as I do . :p

  • GinaDee

    Without AT&T T-Mobile will become the scrappy little carrier without the financial backing to land high end devices.  We will simply be the 2G/3G competitor to Virgin Mobile and Page Plus. 

    By withdrawing its application from the FCC, AT&T is simply taking itself out of the spotlight but behind the scenes it’s doing all it can to lobby with govt. officials to get this thing passed.  You guys will see.  

    All this fighting against the merger is only taking into consideration what people have or had with their beloved T-Mobile of old but takes no consideration about just how bad things will get if this deal fails.  For some reason people choose to remain blind to this fact.

    It’s not yours or my responsibility to save jobs.  Companies have merged many times before.  If some jobs are cut…. I hate to sound mean… .but that’s just business.  Sorry some people will have to find a new job.  We’ve all been through it before believe me.  

    It’s not the govt.’s role to keep people employed forever nor is it their job to promote and save older grandfathered rate plans for all eternity just because John/Jane Doe says so.  This entire entitlement/welfare mentality Americans have developed about our govt.’s role in our lives is sickening.  We need to suck it up and do things that promote our own growth instead of depending on others to do it for us. What happened to our American society?

    • They haven’t asked the government to bail them out. True story.

    • Hark

      Please dont use the word fact in your conjecture, it is irresponsible. Anyone who claims to know what the future holds for T-Mobile is a silly person

    • Tbyrne

      Your comment is disgusting! I’m sickened by these Trolls being allowed to come in here to spew their hateful venom. Yes I know everyone is entitled to their own opinion but c’mon, this is lunacy!

      • Carefullisa

        Troll because someone else has a different view on these turn of events? 

        Some people just call things for what they are.

        Maybe T-Mobile customers are ghetto?  I’ve seen it myself so I actually agree.  Some of their employees are pretty gangsta too.

        Maybe AT&T is greedy?  Yeah so what.  They are a large US business who employ thousands and thousands.  They have a right to make a ton of proift.  Maybe the welfare people need to side with an American company instead?  What a concept?

        AT&T is claiming to bring back 5000 new jobs.  Let’s hold it to them and give them an opportunity to fail instead of demonizing them before it has even happened?  

        When all is said and done and all the crybabies here have been chewed up and sold to Metro PCS or Leap Wireless (on contract) then some of you would wish to be with a larger provider like AT&T who had already agreed to honor your contracts, rate plans with the ability to upgrade your phones without any changes.  

        Careful what you wish for.  

        • T-Mobile doesn’t need AT&T, the door is only opened to overseas carriers. FYI, the job’s claim is bogus, as AT&T will be creating jobs anyways, with their national roll out of LTE and upgrades to their infrastructure. In fact the merger with AT&T would eliminate jobs. And no we won’t be sold to Metro PCS or Leap Wireless! A foreign wireless carrier is going to end up purchasing T-Mobile from DT because that’s what the DOJ and FCC are signaling to DT by opposing the AT&T deal. If DT wants out, DT is going to have to figure out how to get rid of T-Mobile while preserving four national carriers in the USA.

        • Mark Schmaling

          I love it when people say that Corporations have a “right” to make a “ton” of profits.  I have studied Constitutional Law and there is no “rights of corporations” contained there in.  Now if you want to get technical, AT&T as the licensee of airwaves which are ultimately owned by the people and is required to operate in the interests of the public.

          No Corporation ever signed the Declaration of Independence or Constitution.  No Corps have ever fought or died for this country.  In fact just the opposite, during war Corps make huge profits.  No Corp has ever run into a burning building to rescue their neighbor or braved flood waters.  Corporations are not altruistic at all.  Anything they may do for the community is to enhance their own image and ultimately their own profits.  So don’t be so quick to give Corps the same rights as you and I.  Or maybe you think they should vote?

        • Anonymous

          I’ve always felt that its business and partially big corporations that at one point made america great.  I’ve always held the opinion that the government is killing this country with its lack of business friendly behaviors.  So many industries, factories and other important job sustaining systems have been lured away from america.  Though it can be argued that the greed factors involved with them would have allowed this to happen anyway, its safe to assume that governmental powers haven’t helped at all.  Therefore i too think corporations should have a bit more influence in government for the sake of bettering the economy.   

        • TMO Loyal

          It is not that others have lured these factory jobs out of America due to high taxes in America, but that Americans are not willing to work for the $1.50 per hour that someone in a sweat shop in China will work for. So of course it is cheaper to have stuff made elsewhere. If the US government came out and said we we are only going to charge companies a 1% tax on profits as long as you manufacture and assemble everything in the US. There would still be thousands of companies that would stay right where they were. When manufacturing was the life blood of America was the same time that minimum wage was around $.50 and there were no worker rights bills in place.

        • TMO Loyal

          They already do vote through lobyist and paying off politicians. Plus with the supreme court ruling going into effect they can throw as much money as they want to any candidate they want. If that is not a vote I dont know what is.

    • That’s a stereotype, and I’m sure that this also happens at AT&T, Verizon and Sprint! Ghetto people are everywhere these days. T-Mobile never wanted to be bailed out, the sellout is driven by DT’s greed.

    • I see what you’re saying, but think of it like this… The U.S just wants to preserve 4 national carriers, to keep a vibrant economy. Because if the prices increase, people will just end up paying whatever the new AT&T entity in combination with Verizon charge, as cell phones have now become a necessity and not a commodity anymore. Sprint might potentially be hurt and would have to end up merging with Verizon (that would be extremely bad). With the U.S economy being the way that it is now, that will result in people spending less money on other things such as stores, electronics, etc etc, which will hurt the U.S economy. And it’s not the government’s responsibility to save jobs, but as for the Obama administration, that is a top priority during these tough times.

    • Exile 1

      That was well said! 

    • Mark Schmaling

      Mergers and Acquisitions of one company by another does not support capitalism, economic growth, innovation or anything good for that matter.  The natural tendency of capitalism is for consolidation which makes the economy less capitalistic  

    • Ignorance_is_Bliss_

      GinaDee you are the smartest girl I know.

    • Anonymous

      You spew this as if people’s comments on this blog some how affected the outcome of the merger. Get real. But telling people that they have an “entitlement/welfare mentality” because they don’t want to be merged with the worst run network in the world is b/s. Yes part of it is I don’t want to pay $80 more /mo, but the rest of it is I don’t want to pay $80 more /mo for something that barely works. I had ATT for several years, they couldn’t run a network if their life depended on it. Furthermore, ATT isn’t buying T-Mobile because they need it to expand their spectrum. They’re not doing it to create more jobs. THey’re doing it to close down T-mobile and get rid of a competitor. The government shut it down because that’s been ATT’s M/O for many, many years.

      One of the roles of government thus far has been to prevent Monopolies. This isn’t a new thing. This isn’t the first time America has blocked one. And when they blocked it before, I don’t think it was because they had a “welfare mentality”. ATT is known for gobbling up companies just to do it. ATT can already afford to do everything they claim the T-Mobile acquisition will do for them, at a lower a price tag. 

      And please enlighten us, how bad WILL it get GinaDee? Will there be riots in the streets in front of nearby T-Mobile stores? Give me a break. I have no doubt DT will figure out how to get rid of T-mobile, but giving it to ATT doesn’t save anyone, or promote business, or promote jobs, or anything else. It just allows ATT to close down another competitor… that’s all any of this was about. And it didn’t really hurt DT. THey continued expanding network, continued getting high end phones, and now they’re getting a pretty payout at the end.

      BTW, with the exception of the iPhone, please also explain what “High End Devices” this scrappy little carrier hasn’t picked up lately with their lack of money? I see a Galaxy S2, I see an Amaze 4g, I see an HTC Sensation, I still see an option to pick up the Galaxy Nexus albiet at a very high price, and then a whole slew of economy phones. Whats the problem here? What phones are SOOO much better on Verizon an ATT? I can’t think of a single one outside of the iPhone.

      What i’m tired of is people on these comments telling everyone that doesn’t want the merger that they’re welfare babies whole need a free ride. My $150 /mo cellphone bill isn’t a free ride, but thank you for thinking i’m a cheap ass. Go f yourself.

  • Bassichonda96

    Google will buy T-mobile, it only makes sense.

    • cirrob

      I wish people would stop saying this. It doesn’t make sense. The anti trust laws that we have in place ensure that it doesn’t make sense.

      • Mark Schmaling

        Oh please, our government isn’t REALLY serious about anti-trust.  If they were, Walmart would have been sued the moment Obama took office.  AT&T donates to so many righty pols that the administration had to move to block the buy.  This is really about politics not anti-trust.  AT&T has spent over $3 billion on lobbying.  That money isn’t going to Occupy Wall Street, that’s for sure. 

      • If Google was going to be able to control a market by taking over T-Mobile, then yes, anti-trust would make sense.

        However, they won’t. They’ll be owning a fourth place carrier. They may be creating opportunities for Motorola and Android in taking over T-Mobile, but that, by itself, isn’t illegal.

        To put it another way: suppose I won a spectrum auction and decided to sell service using my own phones rather than buying them from third parties, would that be illegal? Of course not. The only way it would become an anti-trust issue is if I started to seriously dominate the market.

        There are no anti-trust issues with Google taking over T-Mobile. None whatsoever. Google taking over T-Mobile is like Apple taking over NeXT or AOL taking over Time Warner. The issue isn’t whether a subsidary might benefit over its competitors, it’s whether the combined company will somehow be able to get a monopoly as a result of its actions. Nobody in their right mind thinks that Google taking over T-Mobile would suddenly make Android the defacto smartphone system, or mean we’re (as in most Americans) suddenly all having to use Motorola phones in order to get any work done.

    • Wilma Flintstone

      If you want Android to Die out, let Google Buy Tmobile because then, Android phones will be exclusive to Tmobile MEANING, THEY WILL MAKE LESS MONEY because the competitors (AT&T/SPRINT/VERIZON) CAN’T SELL ANDROID PHONES.  So yeah keep telling Google to buy Tmobile

  • Microsoft should buy T-Mobile.  There I said it.

    • Tbyrne

      Interesting. Never thought about that scenario. Wouldn’t bother me one bit!

    • Anonymous

      No Id rather not microsoft products sucks xbox, windows, windows mobile, windows phone etc mainly because of the quality of the products their cheap.

    • Wilma Flintstone

      Wouldn’t work for Microsoft either.  An OS manufacturer should NOT buy a Carrier due to them losing the capability for all carriers to sell their devices.

  • Anonymous

    Someone should get Donald T.,and whole bunch of his friends to buy Tmobile! It would be great!
    Then every year he can pick a customer(only 1) to work for him. Just think,The Donald buy Tmobile.
    Then you get text,Telling you have pick to workThe Donald! How great that would be! LoL

    • Wilma Flintstone

      YOU’RE FIRED!!!  >:O

  • prawnparty

    If McDonalds really bought Tmobile.. McDonalds now selling exclusive Tmobile handsets at discounted price with the purchase of any large sized value meal!! The new McGalaxy features a 3.7″ Super McMoled screen with the new McDroid update……Sign up for the new McMobile today at any participating McDonalds!!!!!

    • Oh my god! This is best fucking idea I’ve ever heard. Put a cell tower on top of every McD location and you will have coverage at every corner of the world.

      Ok, jokes aside…

      THIS IS THE BEST FUCKING IDEA!! A+ will buy from again.

  • Anonymous

    Google, just buy T-Mobile already. The writings all over the wall.

    • Wilma Flintstone

      If Google buys Tmobile, what benefit would it be to Google?  I really want an answer to this.

      • TMOTECH

        Not only is there no benefit to google, There is no way it will happen. With the purchase of Motorola the DOJ would not allow it. Too many conflicts.  

        • Wilma Flintstone

          Yeah I understand that but I don’t think the people that are saying Google do.  I want to hear their reasoning behind why they think Google would benefit from acquiring T-Mobile.

        • Chatter

          I think people who love android keep bringing up the Google scenario. They are not actually concerned *why* this makes sense. Its beyond wishful thinking at this point.

        • Wilma Flintstone

          Pretty much.

  • Here are the possible scenarios when this AT&T and T-Mobile acquisition deal fails:

    1) DT will continue in the U.S market and invest in T-Mobile LTE or without LTE since their HSPA+ 4G is comparible to LTE 4G. (doubt it but it’s a POSSIBLE scenario)

    2) DT will remain in the U.S market without making investments in LTE, only if T-Mobile partners up with cable companies for LTE.

    3) DT will remain in the U.S market and PARTNER up with AT&T for roaming and access to AT&T’s LTE network (who knows, but could be a possibility)

    4) DT will spin off T-Mobile to be its own company.

    5) Cable company’s MIGHT be able to purchase T-Mobile (Not so sure about this)…

    6) Sprint might step up to purchase T-Mobile (DOUBTFUL) or have roaming agreement for LTE ONLY.

    7) Foreign wireless carriers interested in the U.S market can purchase T-Mobile and invest in LTE.

    8) A private company with $$$ that wants to enter the wireless industry can also step up.

    Out of all these scenarios, I believe #7 is the one that will end up happening as the DOJ clearly wants 4
    national carriers to remain in competition, and big foreign carriers
    definitely have the $$ and know how to operate the wireless industry
    unlike cable companies and also Google, some people are mentioning
    Google as a potential buyer but, Google makes smartphones and purchasing
    T-Mobile will hurt Google’s smartphone business with the other

    A foreign carrier makes way much more sense, and would not be opposed by the government, but instead welcomed because we have an overseas company investing in the U.S economy :). Remember, DT purchased Voicestream years ago for the same reason.

    • guest

      How about 3 and 4 together, maybe a 3.5 also an option

    • none of those are possibilities.  this ends only one or two ways . .an ATT merger or TMO US being folded.  DT will not invest in the US market anymore hence the sole reason of this .. they will not look to buy it to the lowest / new highest bidder.  they’ll take their 4 billion invest it in TMO UK or whatever and sell the spectrum they’ll obtain or do whatever with it.

      it won’t end well for TMO.  i think it’s time you all just accept that.

      • Why can’t a foreign carrier such as America Movil, Orange, O2, Vodafone and etc etc… can’t end up buying T-Mobile? You’re acting as if only AT&T is the ONLY available buyer. Sure AT&T is the only buyer that will pay premium, but other companies will pay the actual 28 billion T-Mobile is really worth.

  • Matthew Lawless

    So the green ghost is Cricket and the blue one is MetroPCS?

  • Anonymous

    I feel like Sprint and Tmobile are still in the same boat if this deal doesn’t go though. They need spectrum to compete and capital to compete.

    I think DT needs to partner with, Sell the company to , or Sell a share of the company to Dish. Dish has 2k mhz spectrum from the terrestar sale.  They have already said they plan on creating a LTE network and have ask the FCC for approval. Their LTE network won’t have interference problems like lightsquared. Also they need to copy sprint and go with multimode towers, so they can run an LTE/HSPA+ on the same frequency. 

    Sprint shouldn’t buy Tmobile.  It would be almost as bad as the Nextel deal. Sure they get customers and spectrum, but Buying Clearwire would give them that needed spectrum and they wouldn’t have to deal with converting to GSM or Convert Tmobile to CDMA, plus the DOJ would probably block the deal.  Sprint buying Clearwire, who they already own 54%, would give them spectrum needed to create a Strong and Fast LTE network.

    Both of these would also allow sprint and Tmobile to stand on their own, which I believe is important when trying to compete on a national level. Paying roaming fees probably really hurts Sprint and Tmobile profits. 

  • Javi080

    the problem is that most of T-mobile coverage is EDGE and people want something faster than 2g and T-mobile parent company doesn’t want to invest more money into T-mobile usa

  • 123

    Wow, great read David. You were very thorough. 

  • ItsFreezingInHouston

    AT&T thinks they can do anything they want. Even Tmobile was skeptic about the deal going through. Good game for DT by getting atleast chunk of cash and a whole lot of unused spectrums and other assets from AT&T. With $300000000 worth of assets , Tmobile can easily blancket one or two states with coverage.



    • StevenReAnimator

      Such deep… thoughtful… insight… please, start a blog so we can hear more. The world needs more opinions like yours. This is… Amazing.

    • Tbyrne

      I already told you…….Randall. I’m not giving you a life preserver.

  • PhantomWraith

    I don’t mind camping in the woods.

  • Anonymous

    It’s safe to assume that T-mo is slightly done for at this point if this doesn’t go through.  They are too stuck in the middle of the market.They can’t compete well enough with the uber cheap prepaid carriers, and can’t compete well enough with the 3 titans of the industry.  Simply put, there may be no place for T-Mobile’s business model anymore.  It’ll be incredibly difficult if not impossible for them to get out of their rut.  It seems to me like they tried to make their own rules in playing the business game, and now they don’t have any real competitors.  Instead their customers are being poached by both of their competition types.  They are getting yanked from the small guys and the big guys alike.

    It seems to me that they’ve positioned themselves in the middle of the battlefield and are getting shot at from all sides.  The big guys are shooting iphone bombs at them, and the little guys are shooting them with super cheap, unlimited incendiary rounds.  It’s taking its toll on T-mo’s defenses, and soon their walls will crumble and DT knows this.  This is why they are trying to be absorbed by AT&T, DT understands what has happened here and knows its only a matter of time.  Even if the deal falls through and they get some of at&t’s weapons to help fight, it’s still only a matter of time : – (

    If this merger doesn’t happen , these poor bastards are sitting ducks.  My bet is that DT closes up shop and auctions it off to the highest bidder, which will undoubtedly be AT&T.  In the long run i still think AT&T will get what they want in some form or way.  Just a hunch…

  • Ramon

    I’ve been asking myself the very same question. “What happens to T-Mobile if the merger doesn’t go through?”
    It doesn’t look good for T-Mobile customers that’s for sure. DT definitely wants out of the US market…. PERIOD. That’s a fact they are not trying to hide. So if ATT doesn’t buy the, someone else will and sorry but I’d rather be with ATT rather that some cell company or companies I never heard of or know anything about. My mother and brother just left ATT for Metro and the call quality is so bad I could barely understand her on Thanksgiving Day.

    Basically my point is we (most of us) gave 2 thumbs down to this deal as soon as we heard of it. But truth be told , ATT may be the best thing for the customers of a carrier that doesn’t even want to be here.
    Even if they stayed, its hard to imagine tmo will ever evolve or be as competitive as they once were.

    • No, just no. The reason that lots of us gave two thumbs down and spitted on this deal as soon as we heard it is because it is history replaying here. It’s nothing new to AT&T. Already happend, monopoly ensued, government broke it up. If left unchecked, AT&T WILL buy up the whole telecom market sooner or later.

  • Win Win?

    Can’t they sell the spectrum to AT&T and lease back spectrum from them?  Can they do this and remain an independent company?  Can they use this to transition off of the 1700 mhz data band and move to one that is more in line with the rest of the world?  And also have a path forward to LTE without spending $$$ capital investment to get it?


      What do you mean in line with the rest of the world? Others own this band too. MetroPCS is using it for their LTE and AT&T owns a decent chunk of it as well. They are just saving it for when they need it. And the other half of our AWS band IV is 2100MHZ which is widely used in europe and asia. 

      • Win Win?

        I’m pretty sure AT&T uses 850 MHz and 1900 MHz for 3G and T-Mobile US uses 900MHZ, 1700MHz and 2100 MHz.  That’s why the two networks don’t play nice together.  It would be nice if we could wean ourselves off of the odd frequencies and become one with the AT&T mud while remaining independent is all I’m saying

        • T-Mobile does not use 900, they do use 1700 and 2100. AT&T does own some spectrum in 1700 as well.

        • Frigadroid

          On slow news days might I suggest some technical blogging to help educate us less informed & hardcore phone junkies? Perhaps chronic gripers like myself would be less critical of tmobiles performance if we had a proper unbiased understanding of the voice & data processing.

        • Actually, I’m thinking about adding a new feature to the blog where I try and answer some reader questions that I either discover in the comments or arrive via email or social media. This would be a fantastic question to help answer.

        • It is AT&T that has the odd spectrum in the world scale, not T-Mobile.

        • Win Win?

          If AT&T has the odd data frequencies, then why does Duetsche Telecom (T-Mobile EU) have the iPhone in Europe?  The iPhone is not available on the T-Mobile US 1700/2100, but is avaliable for the “odd AT&T” spectrum in Europe?  That’s why I was suggesting that T-Mobile US is the oddball.  I know this isn’t about the iPhone, but the odd frequencies that T-Mobile US uses are one of the primary reasons we don’t have one, right?  All I’m suggesting is that we find a way to give AT&T the spectrum they apparently need to build out their LTE, and then lease whatever spectrum we can from them rather than trying to build out a parallel LTE network.  

  • This is exciting yet sad at the same time, yes the majority of us don’t want the evil company that is AT&T running the show but who will save us from them? What company has the knowledge and experience to run a #4 mobile operator. My contract is up with T-Mobile, and i REALLY don’t want to leave, I keep trying to hold off and see what might happen, truth be told these penny sales going on elsewhere is enticing. I’ll never join a metroPCS type company, i already know quality wont be like any of the big 4. I just hope a group of investors won’t buy T-Mobile, that’s just as worse, those people while squeeze the life out of T-Mobile, squeeze it for every penny it’s got, like a meaner AT&T if you will. Oh well, i will continue to hold off. AT&T is getting all the nice Windows Phone not T-Mobile. *sigh*


    until t-mo has the breakup fee in their pocket, they must tread water.

    after that, they must do something innovative and way ahead of the curve.

    i got my fingers crossed, any alternative sucks.

  • Once this is confirmed dead, i can tell you there will be at least one new contract customer (currently rolling on an EvenMore plus plan).  I don’t know how many others are in a similar situation, but given the response to the deal on this site at the time, i bet there are a significant number who will sign a new 2 year with t-mo once this is dead.
    I just hope they manage to land a few new Windows Phones (as well as good andoid stuff) by then. Nokia Lumia 800 please.

  • Ignorance_is_Bliss_

    The AT&T/T-Mobile is the best option for T-Mobile. A few weeks ago, DT announced that it will not make any further investment with it assets overseas A.K.A T-Mobile USA. DT invests or rather invested $6 billion annually to further develop its operation with T-Mobile USA. However, with hundreds of thousands of customers leaving T-Mobile every quarter, DT can no longer make a return on their investment. If DT cannot find a buyer or figure out a master plan anytime soon, it will only be a matter of time before T-Mobile USA is filing for bankruptcy. What the average consumer doesn’t understand is that T-Mobile can no longer compete in the wireless industry. They have no competitive edge, they no longer have anything that sets them apart from the competition. Many eons ago, T-Mobile was well known for being competitively priced, however, with companies like Metro PCS and Boost Mobile, they can’t afford to lower their price plans even further while staying afloat. People believe that the iPhone can save T-mobile but the truth of the matter is that it will take more than just a phone to save T-Mobile. Apple seems to believe so as they have the iPhone on a regional carrier (C Spire) rather than a nationwide carrier (T-Mobile). It would take T-Mobile billions of dollars to land an iPhone deal, money which they don’t currently have for a phone. The monthly rate plan for an iPhone on all 3 major U.S carriers is roughly $80-$85. Verizon has the best coverage, AT&T the fastest data, and Sprint truly unlimited Data (although the data speeds are deplorable). If the iPhone was to come to T-Mobile what would they have to set them apart from the competition? More than likely customer would have to sign up for a $79.99 classic plan as apple has an input on the rate plan and service type that customers would have to sign up with. Others believe that Sprint will acquire T-Mobile. There’s just too many reasons why that would not happen. First, CDMA and GSM integration would be a nightmare for both carriers, if anyone has(d) sprint/nextel or worked for them they would understand. Sprint themselves doesn’t know which direction to go in as they build a Wi-Max 4G network only to begin an LTE 4G network instead. Sprint doesn’t have enough cash at hand for a buyout as they are looking to investors for their LTE rollout and help clearwire with theirs as well. Lasty, the FCC and DOJ would like T-Mobile to remain as an independent company and a major player in the wireless industry. If they AT&T/T-Mobile merger fails, I would abandon ship with T-Mobile. Their future is unsure and will not survive with the aid of the parent company DT

    • Everything you said is about right. However, the point you missed here is that most customers do not care what’s best for T-Mobile. It’s just another carrier. What we as customers cared is what’s best FOR US. If the buyout goes through, it’s bad for every single mobile customer in the long run.

    • Tbyrne

      Some good points there…..Randall!

  • Tupperlady823

    I am so glad I don’t work for them anymore. It was bad before I know the employees are going to suffer for this.

  • EH

    What ever happens tells me that the consumer is the looser here. All I wanted from any company was fair treatment and respect. T-Mobile has always come through for my family whether we were in the states or out of the country. When ever I needed help with any kind of problem, the company responded with good suggestions and went out of their way to help.
    Innovation was looked at with thoughs of the needs of the consumer with WiFi calling when in an area without great service for example. I was one of the first to jump on the G1 bandwagon since the iPhone did not interest me.
    I only hope that the consumer will.not be left with very little choice, high cellphone bills, and poor service.

  • Frigadroid

    I bought the vibrant day one on contract so I’m not going anywhere soon. I have been loyal from the start and I plan to ride it out till the end.

    With my pessimistic outlook I was wrong about the AT&T deal passing and now I fear something worse.

    I realize at&fee suks but my selfish side thought I would be able to finally get phone coverage when I visit my friend’s place on the lake and family in kentucky.

    Once again I suffered tmobile embarrassment at the louisville/ohio game friday night. While I couldn’t even send a text or get the web. My buddy was texting away and checking the web for scores on his tiny screen at&t iphone :( Come on tmobile Louisville is bigger than most of the cities with 4g. Edge and sometimes G is not acceptable in a major metropolitan area. I hope that what ever happens if tmobile remains that they would work first on coverage without that all their phones are useless.

  • Snapdragon S4

    I have a question. Has anybody ever heard of America Movil? It is owned by the richest man in the world, Carlos Slim. Maybe they can make an offer. They are based in Mexico City and use HSPA+ networks.

    • Have you ever actually had to call Tracfone customer service?  I would not want this to happen. 

      • Snapdragon S4

        Strange. I used to work for Radio Shack and I’ve had experience calling pretty much all of the major and minor providers bar Verizon. Tracfone were pretty easy to deal with. Who do you recommend that should buy T-Mobile?

  • 72anthony

    T-Mobile needs to be purchased by ATT. DT and T-Mobile are already done with us and want to exit. Why not have someone who WANTS us!

    • Cityofnewyork3000

      Why does everyone think At&t are the only ones interested in buying T-Mobile? You know Vodafone was actually trying to buy T-Mobile before At&t swooped in with an over payment just to get rid of a competitor in the process and thereby attain a monopoly on GSM. Anyone with half a brain can see this.

  • Snapdragon S4

    I forgot to mention that America Movil is the fourth largest mobile operator in the world after China Mobile, Vodafone, and Telefonica.

  • i’m glad this was written .. now say it again louder for those who can’t hear .. IF THIS DEAL DOESN’T GO THROUGH TMO IS IN A HUGE BIND … people who wanted this deal dead and were so eager to say loudly that TMO is better off and will all of sudden succeed beyond comprehension are uninformed bordering clueless.

    i’ve said all along although it isn’t the best thing, it is the needed thing to happen.  i’m interested in the aftermath and when there is no TMO option anymore .. how will those same people respond lol

    • ogopogo

      Someone else will buy T-Mobile.

      And that’s the point that you are having a hard time with. Most of us do NOT want AT&T to buy T-Mobile – just about  anyone else is fine.

      AT&T is extremely restrictive – You want free WiFi calling with AT&T? It isn’t going to happen. You want free hotspot with AT&T? It isn’t going to happen.

      But if you want to be gouged on your monthly bill, then yes, by all means, embrace AT&T. They will be perfect for you.

      T-Mobile is still showing a profit – even while being dragged through this acquisition. Because they have managed to keep their heads above water through this whole thing, makes them more viable to be purchased by another company.

      • i’d argue that you really aren’t okay with just anyone else buying TMO lol .. be careful what you wish for when some private firm buys it and decides it’s better off as an insurance company lol

  • Plankton

    Fools! I warned you but you dont listen. My minions rejoice while you flale you arms in disbelief. My minions are reaping the reward of the patience. 

    BUT do not give up hope. The deal will go through. Trust me.  You will all see that I am more that what appears to be the lowest form of life in the food chain.

    The crabby patty formula shall be mine!

    • Guest

      Is Karen given you permission to do all this.   Better yet quit fooling around and figure out how she can power a cell phone for the rest of us. Maybe she can get with Sandy, thats a lot of brain power working on our cell phone problems.

      • Plankton

        Come join me Mr Guest. I have room for your type at the TOP!

  • JaysOn

    Too bad if the deal falls thru, DT will not use its $4 billion windfall to boost Tmobile.  But  you’re right, they might be smart to change the strategy and be the leader in the value market/prepaid.  Promote the 4G – if its truly better- have more and better quality phones than the other prepaids and deliver a better product.  Having been with prepaid now for a month, I can tell you its cheaper but the cust serv is awful.  And my first experience with an Android phone has been horrendous.  I was given the Exhibit 2 and have had nothing but trouble, and honestly can’t tell you if its the phone or Android in general.  I can say for certain that Samsung support has been horrendous; the reps have no clue what they’re talking about and have given me so much incorrect information, Ive given up on even contacting  them.  Also my phone has frozen constantly, I have to do a soft reset (take the battery out) almost every day – and have had to do 2 factory resets and wipe everything out and start over.  Just a nightmare situation.  With Google, there’s also no support.  And even though Ive only downloaded apps from Android Market that have millions of downloads with great ratings, my email has already been hacked for the first time ever – don’t think its a coincidence after a few weeks on Android.  I feel bad for the tmobile store employees- I went there the other day to get some help and have them at least reset my phone and sd and as usual, the employee was extremely helpful and sadly more knowledgable than the Samsung folks. The manager as always was great- even though it had been a year since he last helped me, he recognized me and came to chat…Of course, emblematic of Tmobile, while I was there, someone stole a phone, creating chaos and customers had to wait even longer while employees scrambled and alarms went off.  My experience with Tmobile lately has not been great- the only bright spot has been the local store employees…I don’t know if others have the same experiences.  I can tell you that I know in my gut that  I will eventually get an iPhone.   Everyone I know has one – and Ive started using a Mac.  It just seems it will be easier, and some of you like to call us sheep but I rather have a phone that I know will work and that I can get support if I have a problem.  That just doesnt exist with Android…I feel like Im left on my own to figure things out.  So Id rather have one phone that people can support than hundreds of phones that neither the carrier nor the manufacturer will support.  And Im tired of having a smart phone th at isn’t very smart — Constant problems, freezing, t urning itself off/on…etc

  • Wshelton

    (1) Deal is dead and has been dead from the day the lawsuit was filed. (2) If AT&T was to sell off 40% of TMO, that just proved the point that the buy-out was about reducing competition, not obtaining spectrum.  (3) TMO USA makes money, just not enough for DT.  (4) if DT want TMO USA to have the iphone it would have happened already. DT has lots of market power. (5) TMO can Lease LTE if that what it wants or needs to do. (6) DT will take the AT&T money and pay themselves bonus and not sink it into TMO USA.  (7) TMO owns it towers, a very value property, that someone will want. (8) TMO USA will still be here for a long time, maybe under a differant name, but it was Voicestream.

  • Ww88ww

    Without some better executive talent, it doesn’t matter as the ship will sink.  These overpaid sucks have been running things into the ground long before ATT nosed in.  Did the company have any kind of marketing talent, development strategy, anyone with healthy 6 figure salaries actually earning their pay even several years ago, not to mention now?  It’s ATT, other buy out, or breakup…those at the helm today won’t make a bright future.

  • Guesty

    tmobile doesn’t have to rush into lte should it stay ( atleast for 2-3 years) they can keep upgrading their hspa+ network with money and spectrum they get from att plus or minus a partnership.

  • Google will buy T-Mobile and call it G-Mobile

    • prawnparty

      Good one HAHAHA

    • one can dream lol

  • MrTechy

    I am definitely hoping that Google will come out of its shell and buy T-Mobile and knowing Google…..they can pull tricks out of a hat and make things happen. Let’s hope they make a private bid……like a silent predator seeking its prey at the right time…..Google will pounce when you least expect them to.

  • NO 2 ATT

    I have to wonder with all this going on, and have been pondering this for a while, is all of this just a good ploy by DT, to get more spectrum, and some funding for TMO-US, and also doing it much cheaper than actually buying spectrum. 

    Personally, if I knew that a deal like this has/had no chance of going through, and I knew the break-up agreement was as favourable as it is, I would have gone ahead with the “deal”.


      I believe it could be… while it may be wishful thinking… the idea that DT had it planned hasn’t slipped my mind since I first heard about this deal. Let’s hope all that wishful thinking pays off and it comes true.

  • ItsMichaelNotMike

    The Charge Of The T-Mobile Millions (A poem NOT with permission of Alfred, Lord Tennyson)

    Half a week, half a month,
    Half a year onward,
    All into the valley of Death
    Rode the T-Mobile millions.

    Forward, the TMOUS Faithful!
    Charge for the handsets David said:
    Into the valley of Death
    Rode the T-Mobile millions.
    Forward, the TMOUS Faithful!

    Was there a man dismayed?
    Absolutely, as TMoNews knew.
    The faithful knew Deutsche Telekom had blundered:
    But theirs not to make reply,
    Theirs not to reason why,
    Theirs but to do & die,
    Into the valley of Death
    Rode the T-Mobile millions.

    Acquisitions to right of them,
    Dismayed Deutsche Telekom to left of them,
    MetroPCS in front of them,
    Volleyed & thundered;
    Stormed with new draconian TOS,
    Boldly TMOUS users rode, and well,
    Into the jaws of Death,
    Into the mouth of Hell
    Rode the T-Mobile millions.

    Flashed all their handsets bare,
    Flashed as they turned in air,
    Flaming the naysayers here and there,
    Charging the competition while
    All the world wondered.

    Plunged in battery-smoke
    Right through the line they broke;
    TMOUS users reeled from other’s handset stroke,
    Shattered & sundered.
    Then they rode back, but
    Not the T-Mobile millions.

    Acquisitions to right of them,
    Deutsche Telekom to left of them,
    Prepaid behind them
    Volleyed and thundered;
    Stormed with changes here and there,
    TMOUS handset users fell.

    TMOUS users fought so well
    Came through the jaws of Death,
    Back from the mouth of Hell,
    All that was left of them,
    Left of the T-Mobile millions.

    When can TMOUS glory fade?
    O the wild charge you made!
    All the world wondered.
    Honor the charge TMoNews made!
    Honor the T-Mobile millions,
    Noble the TMOUS users!

    • Anonymous

      Thanks I am going to borrow this. 

      • ItsMichaelNotMike

        That’s fine, but be advised I modified it just now, so you may want the updated version.

        • Plankton

          You are a genious, my friend. Too bad the fools did not heed my warnings and bought the handsets. Oh well.

          Prepare, my minions!

  • ItsMichaelNotMike

    Well I can definitely say that based on this story that one place AT&T and Deutsche Telekom will NOT be going is to lunch with the FCC:

    “AT&T is threatening to sue the FCC if it moves forward with a plan to hold a hearing on the troubled T-Mobile USA deal after the operator withdrew its application for the $39 billion merger.

    AT&T withdrew its FCC application to acquire T-Mobile’s spectrum licenses on Nov. 23, one day after agency Chairman Julius Genachowski said the agency was unable to approve the transaction and would circulate a draft order to send it to an administrative hearing, a major setback for the deal.

    AT&T says it pulled the application before the FCC voted on the order, preventing the agency from moving forward with its plans for a hearing.

    “We have every right to withdraw our merger from the FCC, and the FCC has no right to stop us,” AT&T senior executive vice president and general counsel Wayne Watts said in a Nov. 25 post on the company’s official blog. “Any suggestion the agency might do otherwise would be an abuse of procedure which we would immediately challenge in court.”

  • Anonymous

    TMO Should be sitting pretty even if the deal doesn’t go through.  They get $3B to use to build out more infrastructure, maybe LTE.  They would get more unused frequency from ATT. and get roaming agreements.  All in all I think it’s much better the deal doesn’t go through.

    • ItsMichaelNotMike

      Sorry JR… if Deutsche Telekom actually gets that money (I suspect AT&T will either stiff DT or not pay it until 2013) DT will rathole the cash in DT’s European coffers. It will not put the money into TMOUS.

      Even if the $3 billion stayed in the U.S., in the overall scheme of things that is not much money.

      • Frank Jacobs

        Not to mention T-Mobile will still be on the auction block, and they know they’d only get a small percentage of any money they put into T-Mobile back when a sale is complete. They’re not going to throw good money after bad money.

  • kcsnyud

    Y cant they be independent?

    • Because they’re owned by another company that doesn’t want them anymore.

  • ItsMichaelNotMike

    This is the best written article I have ever seen on TMoNews and it sets out quite well a summary of the state of affairs to date.

  • Neovlad

    First, i do and do not care if this goes through as long as my job is there at the end of the day…With that being said, the longer this goes on I do think it hurts us at tmobile…2012 will be the year iphone comes to tmobile, inside source. we inquired about it for some time apple was making the 3 new phones for the other carriers so they didnt want to spend extra money for a tmo chipset. which is in the works as we speak…

    • Dana Fortner

      but when in 2012?  I’ve got an upgrade in april………(fingers crossed)

      • Everyone and their mother says they have an inside source at T-Mobile who swears the iPhone is coming on X day. Not to knock those who spread these stories, but none of them have come true thus far sooo…please don’t spread them.

        • Magmaspawn

          Amen David. Inside source or not Tmo backing Samsung on what turned into a bash fest did’t expedite that. In the end, I am sure both companies are for money over some squabble. 

          My wife would get an I-Phone if tmob had one. I would not.

  • BigMixxx

    Great Article!

    Tell you something…divestiture works.  If this were any other company, we would be AT&T customers already. 

    Sad thing here is that T mobile is being taken through the ringer.  DT has put a mediocre executive staff together and applying a different set of rules.

    Where I don’t agree is with the value position.  I think t mobile is right priced for the business. ATT is flat out high and Verizon is oh so overpriced for the technology presented.  There is no question right now that ATT has the right thing going (LTE fast…hspa+ fast…hpsa/3g good…and far reaching arms) with it’s future network integration.

       A new carrier by name not T mobile (IMHO) should run right along with where home phone service should be.  As data gains footing, some things have gotten totally outrageous.  Value led companies like Metro and Leap aren’t looking for a significant presence in the market as they are meeting expectations of their customers.  US cellular is an outlier ripe for the pickings (C-Spire watch out).  A new Carrier could come in a sweep the bottom layer and provided the same value, if not more, that these carriers are offering now.

    LEt’s not forget, because ATT and DT say T mobile is worth 39 billion, it ain’t.  DT market cap right now is only 56 billion dollars, that 39 billion will make it look REAL good.
    There is no true value to T mobile; I’d put it right now at about 18 billion.  Enough to purchase smaller players and remain competitive as well as put Sprint into a bad position. If there is any opportunity for a German lead company to recoup anything would be to fund a spinoff with the help of a private equity fund.

    I see a T mobile surviving on it’s own, no question,  (With a leadership change of course) and some ground work to talk with each and EVERY store and customer to assure them of a company that will be around for the next 3 to 5 years.  iPhone could be the lynchpin to the success of a national value leader.  Remember iPhone customers = loyal customers, loyal customers = money….

    A google buy, I don’t see it.  If the Government is questioning the Search engine and how it works, then A mobile phone company purchase becomes a problem…easy….I would be surprised if they did.

    A Sprint buy..almost impossible….but not impossible.  Divestiture.  ATT has changed Several Times over the years so why can’t sprint (ATT, ATTGIS, NCR, Bell labs, lucent technologies, etc).  Centurylink would need to step in to help (by turning loose those Land Line customers that Sprint maintains).  it would really allow sprint and some banks to fund a merged company and a change in technology.

    This would keep ATT and Verizon from raping the market with high data plans (because that’s where the gold is and I’m waiting on this to be regulated as the push for Mobile phone technology continues) it would not keep those two companies from merging….but gives customers a national value leader that provides significant choice.

  • Greg

    As I look through the last day worth of responses, I notice a lot of people sounding like they think a turnaround can take place quickly. There aren’t going to be any quick fixes to the situation T-Mobile is in.

    Changing the leadership  — while it may be helpful, isn’t going to automatically make things better. A new CEO, CFO, and new management group are still going to be facing the same things the current ones are. A declining customer base, popular phones not available on our network, coverage issues, and the lack of planning for the future.

    A new owner is going to have to decide which way they want to position the company. Are they going to turn into a low cost, no frills provider? Or are they going to start trying to catch up to the big 3 and end up raising their rates? The current business model is not working, and hasn’t been for years, which is why I agree with David that we’re in for some dark days before things get better.

    I know a lot of people like the idea of $20 or $30 unlimited voice/data plans with our fast network. Sure, that’d be great for the consumer. We managed to eke out a profit last year by charging $100 for that. Cutting that revenue by 70%-80% is not going to help turn things around.

    Likewise, becoming “more customer friendly” and offering bigger discounts on phones for customers still mid-contract sounds nice and cheery and makes the customer smile, but it’s a big kick in the pocketbook.

     I’ve often said that the things many of us used to love about T-Mobile — frequent cheap upgrades, inexpensive plans, smartphones that didn’t require a data plan, etc — are exactly what’s gotten us to this point today. I hate to say it, but whoever ends up buying us is going to have to start running things less as a happy-land and more as a business inline with the competition.

    The last I read, it looked like at present rates DT would finally see a return on it’s investment in T-Mobile in about 20-25 years. Whoever ends up buying T-Mobile, be it Google, China Mobile, etc is not going to let it work that way. They’re not going to spend billions and billions on the company, then billions more to upgrade the network and hopefully attract customers, then sit looking at a 3-4% return per year.

    Anyhoo, I’m rambling now. I’ll be quiet.

    • BigMixxx

      so now to be sure….A lot of good thought here, but to be sure.

      there are a couple of phases for company turnaround…
      1)  The product must be valued, the complete portfolio to know exactly what the product is worth

      2)  T mobile has the right approach now, but what t mobile is doing to solicit the product is the wrong approach.  Take for example the very same device being offered on an ATT network is offered on T mobile’s network for 5 times the cost.  (unsubsidiezed) That’s a complete turnoff. 

      3)  Very similar product is being sold for 50 dollars more on T mobile’s network.

      IMHO, there is nothing in the store unsubsidized (outside of the amaze) that should go for more than 199 (unsubsidized). Keep thought simple in the store, i.e. the phone costs X, the plan costs Y…you want some accessories?  that’s what we understand.. simplicity….

      Keep the devices priced right and they really would come…People comparatively shop by nature.  Understand a couple of things:

      1)  That MyTouch line was horrible until the MyTouch 4g…diluted by a Great Device in the MYtouch 4G slide, Killed by either a direction shift in HTC or a shift in T mobile (I’m thinking HTC in this case).
      2)  Good move on the G2, bad move on the G2x…G-series brand is now dead because of LG and poor software development…Really…(How the hell do you mispell ‘Off’ in the camera settings).
      3)  MyTouch by LG, really? Really.
      4)  Amaze, Sensation, Galaxy S II, Sidekick, Blackberry, MyTouch Associates closely with HTC….people know and understand that name….Killed by MyTouch by LG and HTC directional change. (IMO)  MyTouch line should be rebranded and G series should be shopped for better vendors…hello motorola?    

      T mobile has high brand potential, Even higher upswing for value.  There is probably an additional 4 billion a year in profit in T mobile that some strong stabilization and leadership will help…

      • Greg

        You’re probably right — I know you’re more up on the corporate finance stuff than I am!

      • Magmaspawn

        I love everything you say except the G series with Motorola. Sure they cook up a good Vanilla. Thing is Vanilla isn’t cooked… That is why its good. Thats not them making it though.  Toss up any decent spec of hardware and your already legit when you do that.

        Bionix did a fantastic job with roms and made it big. Look at what Motorola did when they tried to put a spin on things… Motoblur? I’d say Motofail and google fail by buying it.

        Though I may come off in disagreement with Motorola, the no bake versions tend to require less work on manufactures parts to be aggressive with updates. At that point its a small fit to plug.

  • hi boys and girls

    .Let me start off saying thank you tmonews even having this site to begin with.

    I currently work for tmobile. I will not state where, what, and how long I worked for them.

    Now this is the problem with tmobile.. Well, there really is NO problem with them. I mean, largest 4g network, cheapest plans, largest carrier or open system android phones, and probably having better call center reps than our competitors (even though they’re not from the states).

    What’s going on that there’s this amazingly easy to use, stylish looking, trendy iphone that has phenomenal customer services when you walk into apple when you have a problem with your iphone. You can’t walk into a lg, htc, Samsung, and other manufacturers retail store if your os crashes or your screen breaks.

    I think it’s what tmobile don’t gets, and just needs to accept it. I mean at&t had to accept it for tmobile sidekick era that almost had at&t go out of business. So until they can figure something out, the only think we can do is stand tall and hold on tight.

    Yes tmobile failed in opening many indirect stores that all lead into illegal business practice. Yes tmobile failed having smart access with their $150 spending limit, and then members account suspension. Yes tmobile failed with flex pay having the member paying for 2 months in advance for anything. Yes tmobile failed for having microsoft handling the sidekicks servers that failed for all most 3 months straight. Yes tmobile failed as far as advertising a price plan and end up paying more (bait and switch).

    But, no tmobile did not fail in changing USA cell companies. Even though it’s time to give up on our playground style store, even really we should be putting on our hard hats to get ready for roofs falling on us.

    I have to say, but we lost much of our motivation and if we stay unmotivated its just going to make things 10 x worst.. Yes it’s hard for us to walk into work and only have 5 activations a week knowingly we use to do that a day. But on the up and up, we are still activating 5 lines a week.

    Now I always said if you want an iphone and your OK as far as paying $150 per a line a month, then it’s going to work for you. And if you want a phone just like an iphone and can only afford $80 then tmobile should be your provider.

    The problem persist for the fact these cell phones are now more like laptops where apple is a computer company. Att customers are more loyal because apple is loyal to the customers. Att could give 2 shits, if you have a problem with the software on your iphone the Apple Store is right on first floor. Tmobile can’t say that.

    OK, now so tmonews took a survey and come to find out there’s more iphone users on tmobile unlocked than Att. Even with the edge speed. Why?? Because they are cheap in price for street value. Hey, an $200 unlocked iphone works better than $450 g2x (yeah lg makes 1000 different things so you can tell they didn’t put much focus on their phones).

    Being and having tmobile is like eating sushi everyday and the one time it’s prepare bad you may not want to eat it ever again. And lately tmobile has been preparing bad sushi. I know tmobile intentions are good, trying to mix of the taste of the recipe, but not everyone taste are the same.

    Tmobile is slowly moving towards the european taste of a cell phone company(since they are from Europe). Matter of fact, if you ask me, the question is not if tmobile USA is moving towards the european style, the real question is when. In the meantime, tmobile will take years to move all our contract customers to non contract.. That’s right, I said it, EVERYONE. Every last drop of the non business lines, that the retail store work so hard for in the pass 10 years just to be on an unlimited $50 prepaid system

    So to sum up my story is this. Tmobile USA is in for a very bumpy ride, so hold on. We are going to be look down on, so stand tall. Many days are going to look the same, so stay motivated. And structures will fall apart, but stay strong.

    H.O.P.E. = hold on pain ends
    But let’s just hope our pay check doesn’t end :/