Sprint, T-Mobile merger under consideration again, given change in US regulatory climate

Posted:
in General Discussion edited February 2017
After laying fallow for two and a half years, the proposed merger between T-Mobile and Sprint may be lurching back to life, given the change in the U.S. government, and a new willingness by SoftBank to cede control of Sprint to the combined company's master.




According to sources familiar with the matter cited by Reuters, the possible merger between SoftBank-owned Sprint and Deutsche Telekom's T-Mobile is under consideration again. To solidify the deal, and potentially ease the progression of the transaction through U.S. regulators, SoftBank is willing to surrender control of Sprint.

SoftBank has not started negotiations for the possible blockbuster deal. U.S. Federal Communications Commission rules strictly prohibit discussions of nearly any sort during an open broadcast spectrum auction -- which is currently underway, and will conclude in April.

"We may buy, we may sell. Maybe a simple merger." said SoftBank Chief Executive Masayoshi Son during the most recent quarterly earnings conference call. "we may be dealing with T-Mobile, we may be dealing with totally different people, different company,"

Deutsche Telekom, majority owners of T-Mobile, was reportedly open in the summer of 2014 to offers for its U.S. operation for a mostly-cash deal. Discussions were reportedly near-final, with capital ear-marked and financing plans in place for the merger, which would have brought together the third and fourth largest mobile providers in the U.S.

In August 2014, following months of rumors and speculation, Sprint dropped the bid for T-Mobile after assessing regulatory hurdles as insurmountable.
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Comments

  • Reply 1 of 22
    NY1822NY1822 Posts: 492member
    lol....coincidently on options expiration day
  • Reply 2 of 22
    Oh, please no. I love my T-Mobile, and I don't want Sprint anywhere near it.
    georgie01cornchip
  • Reply 3 of 22
    Oh, please no. I love my T-Mobile, and I don't want Sprint anywhere near it.
    I would hope it would be Sprint merging into T-Mobile, not the other way around. Sprint is trying but I don't necessarily think they're doing a lot of succeeding. 
  • Reply 4 of 22
    ronnronn Posts: 238member
    I'm all for it with T-Mobile being in control of the combined entity. Years ago I was against a merger as I thought it would hurt competition. IMO, these two can't truly compete against AT&T and Verizon as standalone companies. Given the current administration, I think it's likely a merger would be approved and quickly completed once talks are allowed to get under way.
    cornchip
  • Reply 5 of 22
    Consumers lose every time there become one less competitor in the market. The current administration only cares about bigger profits which will find a place in a tax shelter off shore. Yay capitalism. 
    tomkarlktappeboopthesnoot
  • Reply 6 of 22
    But they're on different systems. How does that work?? 
  • Reply 7 of 22
    razormaid said:
    But they're on different systems. How does that work?? 
    That doesn't matter. iPhone's support both GSM and CDMA. 
    sergioz
  • Reply 8 of 22
    razormaid said:
    But they're on different systems. How does that work?? 
    That doesn't matter. iPhone's support both GSM and CDMA. 
    Thats true, but I really hope that they'll keep GSM standard as a default, because I personally don't like the limitations of todays CDMA!
    edited February 2017
  • Reply 9 of 22
    razormaid said:
    But they're on different systems. How does that work?? 
    Sprint and NEXTEL were on different systems. Basically one will probably go away. Someone will be buying someone else's subscribers. 
  • Reply 10 of 22
    Large mergers should not be blocked. This myth about preventing monopolies is simply nonsense. Monopolies happen when there is a LACK of competition and too much regulation created to favor Washington connected players, not when there is actual strong market competition. 


    edited February 2017
  • Reply 11 of 22
    sergioz said:
    razormaid said:
    But they're on different systems. How does that work?? 
    That doesn't matter. iPhone's support both GSM and CDMA. 
    Thats true, but I really hope that they'll keep GSM standard as a default, because I personally don't like the limitations of todays CDMA!
    The old CDMA is essentially dead.  All new equipment deployments are LTE.  Sprint gave up on WiMax a few years back.
  • Reply 12 of 22
    Large mergers should not be blocked. This myth about preventing monopolies is simply nonsense. Monopolies happen when there is a LACK of competition and too much regulation created to favor Washington connected players, not when there is actual strong market competition. 


    And THIS.

    There are effectively four cell providers in the US.  Yes, there are a few regionals, but they're small enough to be almost irrelevant to be any meaningful competition for the big players.

    Unregulated capitalism inevitably descends into monopoly, and monopoly is always bad for consumers.  If this happens, expect higher prices and slower service expansion.
  • Reply 13 of 22
    T-Mobile is already winning.  Sprint is loaded with debt.  SoftBank has buyers remorse, and wants out.  T-Mobile would be fools to buy.
    cornchip
  • Reply 14 of 22
    darkvader said:
    Large mergers should not be blocked. This myth about preventing monopolies is simply nonsense. Monopolies happen when there is a LACK of competition and too much regulation created to favor Washington connected players, not when there is actual strong market competition. 


    And THIS.

    There are effectively four cell providers in the US.  Yes, there are a few regionals, but they're small enough to be almost irrelevant to be any meaningful competition for the big players.

    Unregulated capitalism inevitably descends into monopoly, and monopoly is always bad for consumers.  If this happens, expect higher prices and slower service expansion.
    That is simply not true. Point to any actual case of monopoly in US history and there is a political reason for that monopoly. 
  • Reply 15 of 22
    Large mergers should not be blocked. This myth about preventing monopolies is simply nonsense. Monopolies happen when there is a LACK of competition and too much regulation created to favor Washington connected players, not when there is actual strong market competition. 



    Alternative reality field detected. 
    montrosemacs
  • Reply 16 of 22
    Large mergers should not be blocked. This myth about preventing monopolies is simply nonsense. Monopolies happen when there is a LACK of competition and too much regulation created to favor Washington connected players, not when there is actual strong market competition. 



    Alternative reality field detected. 
    Feel free to cite any and all examples of monopolies and I'd be happy to let everyone know which political forces enabled those monopolies (SPOILER: free markets never supported any current or historical monopolies) OR you can just cut to the chase and read this PDF:  https://mises.org/system/tdf/The Political Economy of Monopoly_3.pdf?file=1&type=document
    edited February 2017
  • Reply 17 of 22
    Large mergers should not be blocked. This myth about preventing monopolies is simply nonsense. 



    Except it's really, really not. To think otherwise is to completely ignore reality. In the airline industry we now have an oligopoly and certain airfares have gone way up. I run group trips and we can no longer get group discounts because the airlines have merged to the point of being in full control of the market and having all the power in negotations; we can't go somewhere else.  Then look at the recent competition in the cellular market, with all of them now rushing to match T-Mobile's unlimited data plans. If the market constricted, all those deals would go away.  Why do you think otherwise? What *DATA* do you have other than your opinion and "the free market is always best" brainwashing?
    montrosemacsSpamSandwich
  • Reply 18 of 22
    Let Sprint die. Keep T-mobile strong!
  • Reply 19 of 22
    Sprint and T-Mobile survival depends on this merger because At&t will eventually convert Dish to a Netflix-like programming and repurpose it's spectrum to suit mobile.
  • Reply 20 of 22
    Large mergers should not be blocked. This myth about preventing monopolies is simply nonsense. Monopolies happen when there is a LACK of competition and too much regulation created to favor Washington connected players, not when there is actual strong market competition. 


    Clearly you don't live in a market where Comcast is your only option for cable television and high speed internet. The worst company in the world. And they use that monopoly to charge whatever they want. Price increases are generally rubber-stamped by the local governments, because it means more tax revenue. That's why lots of people try to use cellular data, especially LTE, as replacement service. People are actually trying to force the creation of choice, not the government.
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