The industry thinks a Sprint-TMobile merger could work.

Discussion in 'T-Mobile' started by LandSurveyor, Mar 16, 2011.

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  1. LandSurveyor

    LandSurveyor LandSurveyor

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    Which I find surprising, considering the different networks but:

    Tower firms at little revenue risk from Sprint/T-Mobile merger, Cowen says - RCR Wireless News

    The thinking also seems to invert the conventional wisdom re: the different networks. Something like "Sprint has already learned how to do this with Nextel, therefore they will know how to do it with T-Mobile."

    T-Mobile's public statements have been in the "neither confirm nor deny" vein so it's a possibility from their point of view.

    One statement I found very surprising was:
    "The firm also said that tower overlap between Sprint and T-Mobile is minimal."
    I wouldn't have expected this but it makes the idea more geographically sensible, anyway.

    If their coverage only minimally overlaps, then they already have the tower locations to expand if necessary. If both move to LTE for everything, they can continue to operate separate networks until both divisions deploy the new technology. Sprint is already working to migrate their outdated Nextel Iden to a CDMA-based PTT technology so they can do this. How cost-effectively they can do this is another matter.

    The end result might be one more big carrier better equipped to do battle with the other two rather than two smaller ones ablating customers.

    Of course, they still won't have near the footprint of VZW but the same is true of AT&T and that obviously doesn't bother them very much. I really don't see how VZW's coverage isn't a bigger draw for more people than it apparently is. I guess it's because of the concentrated nature of the country's population.
     
  2. r0k

    r0k Dazed

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    I wish Sprint would buy Tmo and move everybody to GSM. Sprint's CDMA network isn't very competitive with Verizon's and contrary to what Sprint reps tell you, you really can't roam Verizon's towers with a Sprint CDMA phone.

    But wait a second. Sprint has CDMA and IDEN (which is a proprietary flavor of GSM). And to this jumble they want to add GSM? Wow. I can see a merger making sense in terms of combining account servicing, etc but it's a horrible mess when it comes to infrastructure.

    I really don't understand why the FCC doesn't grow a spine and tell these carriers "you must use frequency xxx and technology yyy" But alas, the FCC would rather make money auctioning off spectrum which only serves to further fragment our sorry ass wireless and broadband market.

    This is what happens when the government goes broke. Just like a small town suddenly focuses on speed traps instead of fixing bridges, the feds suddenly care more about spectrum auction revenue than they care about whether the public has a functioning free market or any real choices.
     
  3. LandSurveyor

    LandSurveyor LandSurveyor

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    I think the idea is that the current differing network tech would be obviated by moving everything, voice included, to LTE (or WiMax?). I don't care which technology. The only difference it makes to me is that I can swap SIMs on my GSM phones. If I have that capability, I don't care what alphabet soups is working on my device.

    I'm more mystified about the non-duplication of area thing. Sprint's still stringy down here. T-Mobile is much better but still has pretty big gaps. There's bound to be a lot of overlap, maybe both carriers even have equipment on the same towers in places, like along the interstates.

    Logically, the money from the sale of spectrum should have gone into improving service in underserved, mostly rural areas, public safety coverage, like mobile 911 location equipment and even the subsidized phones the government gives to the poor. In practice, I'm sure it will just go into the general pot. But that's way off the subject.
     
  4. Varjak

    Varjak Mobile Deity

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    I do think it could work; but they will have plan very well, and execute even better. Any bobbles, infighting, delays, etc. and they will get killed. Cannibalized by other, bigger carriers. And that's not easy to do.
     
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